Wattle Health shares have jumped as much as 18 per cent after the infant formula company secured regulatory approval to sell milk powder in China.
The company says it has secured approval for general trade in China of its one-kilo retail bag of milk powder, a move that will generate additional sales and boost the company’s profile ahead of the expected receipt of accreditation to sell infant formula in the country.
Wattle Health shares surged by as much as 18.5 cents on Wednesday’s news and, at 1400 AEST, were still up 11 cents, or 10.5 per cent, at $1.155.
The ASX-listed firm said it will exhibit this week at China’s largest baby products expo, which chairman Lazarus Karasavvidis said will further expose the brand to Chinese buyers and consumers.
“(The move) will further expand brand awareness and more importantly revenue,” Mr Karasavvidis said in a statement.
“This is a continuation of our China market strategy and ongoing commitment to making healthy, pure 100 per cent Australian-made produce available to our China consumer.”
Wattle Health is one of several Australian dairy product firms targeting the lucrative Chinese market.
Bubs last month signed a secured a deal to sell its products on Alibaba – China’s largest e-commerce platform – while Bellamy’s is waiting on a licence to sell more products in Chinese stores and The A2 Milk Company is also expanding in the country.