Comvita, Capilano form Australian honey venture to boost supply
The companies have signed a memorandum of understanding to form a jointly-owned business that would produce manuka honey.
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Hawke's Bay
New Zealand manuka honey company Comvita [NZX: CVT] is linking up with its Australian counterpart, Capilano Honey, to form an apiary business in Australia.
The companies have signed a memorandum of understanding to form a jointly-owned business that would produce leptospermum honey, commonly known as manuka, for medical and natural health products, Te Puke-based Comvita said in a statement.
Comvita has sales and marketing operations in Australia and the venture with Capilano will enable it to secure greater volumes of honey to be processed in Australia to meet growing global demand. For Capilano, the venture would help it expand its specialised leptospermum apiary operation in Australia and secure greater honey supply.
"Comvita and Capilano have already been involved in a joint research initiative to investigate the medicinal properties of Australian leptospermum honey," Comvita said. "In order to best satisfy growing sales, both companies recognise the need to expand their operations and build the supply base for premium quality honey, especially in Australia. Both businesses believe they will achieve significant long-term benefits by working together."
Comvita and Capilano are benefiting from consumer demand for health and wellness products. Comvita's shares last traded at $9.20 on the NZX and have gained 122% over the past year, making it the third-best performer on the S&P/NZX All Capital Index. Capilano's stock last traded at $A18.65 on the ASX.
(BusinessDesk)
Tina Morrison
Wed, 02 Mar 2016
Wed, 02 Mar 2016
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Comvita, Capilano form Australian honey venture to boost supply
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