TORONTO--(BUSINESS WIRE)--Jamieson Wellness Inc. ("Jamieson Wellness" or the "Company") (TSX:JWEL) announced today that the Company has reached an agreement to acquire tangible and intangible assets from its distribution partner in China, allowing it to directly operate its sales, marketing and distribution activities in China effective April 1, 2023.
Under its previous distribution agreement, the Company’s distribution partner maintained exclusive rights to distribute and market Jamieson Wellness-owned brands through cross border e-commerce, domestic retail and online channels in China. While the Company’s historical operational approach has generated strong results in-market, this acquisition is a significant step forward in its brand expansion plans in China, allowing it to take a more direct and holistic approach to delivering brand experiences for Chinese consumers in this key international market.
“The Chinese market offers exciting growth opportunities for our business, and this acquisition marks the next step towards harnessing them,” said Mike Pilato, President and CEO of Jamieson Wellness. “Our business in China continues to outpace the industry average, and with our previous distribution contract set to expire at the end of 2022, we felt it is time to align our direct go-to-market strategy with a clear focus on growing our business for the long-term.
“Moving forward, we will directly manage the customer and consumer relationships with our team in China. Powered by our strong brand and the ownership of our complete value chain we will accelerate momentum by increasing investment in traditional marketing, channel expansion, and direct consumer communication activities. Our goal to truly scale our China business is transformational, and in-line with the brand demand that Chinese consumers have shown for Jamieson and our 100-year history of quality and trust. This is a remarkable time at Jamieson Wellness, as we enter our next century of growth with these advancements in support of our mission to become the world’s most successful and trusted health and wellness company.”
China is the second-largest vitamin market in the world, experiencing growth outpacing the global industry average. The Company has a three-pronged strategy in the country, delivering growth in cross border e-commerce, domestic retail and e-commerce, and holding a category leadership position with its international club partners. In anticipation of this transition to a Company-owned distribution model, the Company is in the process of expanding its Shanghai office (Jamieson Health Products (Shanghai) Co., Ltd.) and team, which includes general management, sales, finance, marketing, procurement, regulatory and quality professionals. The Company continues to consider additional strategic partnerships to accelerate growth and strengthen its position in mainland China. Ownership of the assets will come into effect on April 1, 2023, subject to customary closing conditions, and the current distribution partner will work with the Company’s team on the ground in China until July 1, 2023, to help ensure a smooth transition and continued momentum of the Jamieson brand while executing on the Company’s growth aspirations.
About Jamieson Wellness Inc.
Jamieson Wellness is dedicated to improving the world's health and wellness with its portfolio of innovative natural health brands. Established in 1922, Jamieson is the Company's heritage brand and Canada's #1 consumer health brand. Jamieson Wellness also offers a variety of VMS products under its youtheory, Progressive, Smart Solutions, Iron Vegan and Precision brands. The Company is a participant of the United Nations Global Compact and adheres to its principles-based approach to responsible business. For more information please visit www.jamiesonwellness.com.
Forward-Looking Information
This press release may contain forward-looking information within the meaning of applicable securities legislation. Such information includes, but is not limited to, statements related to the Company’s growth opportunities, its plans to increase investment and consider additional partnerships, and its plans to expand its offices and team in China.
Words such as “expect”, “anticipate”, “intend”, “may”, “will”, “estimate” and variations of such words and similar expressions are intended to identify such forward-looking information. This information reflects the Company’s current expectations regarding future events. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the Company’s control that could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Such risks and uncertainties include, but are not limited to, the factors discussed under “Risk Factors” in the Company’s Annual Information Form dated March 29, 2022 and under the “Risk Factors” section in the management’s discussion and analysis of financial condition and results of operations of the Company filed today, November 3rd, 2022 (the “MD&A”). This information is based on the Company’s reasonable assumptions and beliefs in light of the information currently available to it and the statements are made as of the date of this press release. The Company does not undertake any obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law or regulatory authority.
The Company cautions that the list of risk factors and uncertainties is not exhaustive and other factors could also adversely affect the Company’s results. Readers are urged to consider the risks, uncertainties and assumptions associated with these statements carefully in evaluating the forward-looking information and are cautioned not to place undue reliance on such information. See “Forward-looking Information” and “Risk Factors” within the MD&A for a discussion of the uncertainties, risks and assumptions associated with these statements.
