Australian Dairy Nutritionals Group strikes infant formula distribution deal for China

The Camperdown dairy company is on its way to selling organic a2 infant formula into China.

Camperdown dairy company Australian Dairy Nutritionals Group will soon be exporting its new infant formulas into China after striking a deal with a local distributor.

The company said it had executed a supply agreement with a “well-established Tier 1 distributor who has a proven track record of selling infant formula in the Chinese market”.

The distributor will sell into China through its cross border e-commerce channel.

Australian Dairy Nutritionals Group has engaged a top Chinese distributor to get its infant formula into China through the cross border e-commerce channels.

Australian Dairy Nutritionals Group has been working towards producingorganic a2 infant formula using milk from its Western District dairy farms.

Last month it launched its “tummy health” Gradulac infant formula into the Australian market.

The company is in the final stages of the commissioning of its new purpose-built manufacturing plant on the northern side of Camperdown to produce the organic a2 infant formula.

ADNG chief executive officer Peter Skene announced the distribution deal today.

“This is a very important step that will be backed by a targeted marketing campaign to create awareness and drive sales of the group’s infant formula products,” Mr Skene said.

“The cross border channel has become increasingly important with the reduction in the personal shopper channel due to Covid-19 travel restrictions.”

The company will send 2000 cans of infant formula to China early in the new year to back the launch of its products into the Chinese market.

ADNG went into a pause in trading on the Australian Securities Exchange about an hour after the announcement and the trade in shares remained suspended.

Peter Hemphill’s family holds shares in Australian Dairy Nutritionals Group.