MGC Pharma (ASX: MXC) has struck an agreement with leading Chinese e-commerce platform YuShop Global. The deal also gives MGC access to YuShop’s 1,500 retail partners, providing significant exposure to the world’s largest e-commerce market.
MGC’s wholly owned nutraceutical subsidiary, MGC Nutraceuticals, is bringing its entire CBD range to China, including Protein Powder, BCAA capsules, Water Soluble Solution and a Herbal V-Pen.
This partnership is significant, as YuShop Global is one of a few companies granted access to the Chinese market through the Chinese Cross-Border e-Commerce scheme, which allows import of products without having to apply for China Food and Drug Administration (CFDA) approval.
YuShop provides access to over 350 million middle-class Chinese consumers, as well as over 1,500 retail channel partner outlets and an online, app-based, storefront. This Chinese consumer market is forecast to purchase over US$20 billion of Vitamins and Supplements in 2020, with foreign products being in high demand because of the perceived superior quality and reduced counterfeit products often associated with domestic brands.
CEO of MGC Pharma, Roby Zomer, said “The expanded sales distribution into China represents a significant step forward in the commercialisation strategy of MGC Pharma’s Nutraceutical range. We are focused on a growth strategy of becoming a leading global provider of phytocannabanoid health products, including our Nutraceutical range, on top of our leading medicinal products.”
CEO of YuShop, Nathan Halsey, said “I am excited to have the opportunity to bring MGC’s expanded line of CBD-infused Nutraceutical products to the China consumer market. MGC Pharma’s current product offering, along with their product roadmap, is going to lead a technology-backed CBD product demand surge in China. Where most CBD brands today are limited to CBD oil tinctures and gel capsules, MGC Pharma’s expanded line of CBD-infused Protein Powders, Multi-Purpose Vitamins, and Nutraceuticals are not only advanced for the UK and North American markets, they are in a category of their own currently in China.”