Last checked at 26 Jan 2015 07:00
26 January 2015
Venture Life Group plc
("Venture Life" or "the Group")
30-year exclusive distribution deal with major skincare and cosmetics retailer in China
Venture Life Group plc (AIM: VLG), the international consumer products group addressing the self-care needs of the ageing population, announces that it has signed an exclusive 30-year distribution deal with one of the largest skincare and cosmetics retail chains in China.
The agreement is with REC Cosmetics (Shanghai) Limited ("REC"), a subsidiary of Gialen Group Co. Ltd ("Gialen"). Gialen is a privately owned business with 10,000 employees operating in over 1,000 of its own retail skincare and cosmetics stores across mainland China. Gialen is currently undertaking a rapid new store opening programme and over 300,000 customers currently visit their stores daily.
Under the terms of the distribution agreement, REC has the exclusive right to sell an initial range of 15 skincare products, including some products from Venture Life's anti-ageing range, ("the Initial Range") in China, Macau, Hong Kong and Taiwan. Venture Life will be the exclusive manufacturer and supplier to REC for all current and any future products under the agreement.
The Initial Range is expected to be launched in Gialen Group stores in China in the second half of 2015, subject to registration approval. For the Initial Range, contractual annual minimum purchase obligations ("MPO") have been agreed, the achievement of which maintains REC's rights to distribute the products. The MPO are worth approximately RMB 52.8m (£5.7m)* in sales for Venture Life over the first five years after product registration, including RMB 8.5m (£0.9m)* during the first year after registration. Over the full term of the agreement, the total MPO are worth approximately RMB 371m/£40m* in sales for Venture Life.
Jerry Randall, Chief Executive Officer of Venture Life, commented:
"We are delighted to have signed a very significant deal with such a progressive, fast-growing Chinese skincare and cosmetics business. We have worked through a very detailed process to arrive at this agreement with a partner who clearly shares our philosophy, ethos and ambition to grow in China.
"This agreement demonstrates there is a strong appetite for our products in China and the other territories, where the demand for high quality Western products, particularly in skincare, remains strong. Our Italian manufacturing capacity and capability has also been a major factor in securing this agreement, and further validates our strategic approach as an integrated product development, manufacturing and commercialisation company. We expect this deal to represent just the start of a very successful collaboration with Gialen in China."
* At current exchange rates as the Initial Range is priced in RMB.
- Ends -
For further information please contact:
Venture Life Group PLC
Jerry Randall, Chief Executive Officer
James Hunter, Chief Financial Officer +44 (0) 1344 742 870
Panmure Gordon (UK) Limited Freddy Crossley / Duncan Monteith +44 (0) 20 7886 2500Corporate Finance
Tom SalvesenCorporate Broking
Square1 Consulting
David Bick
Mark Longson +44 (0) 20 7929 5599
Notes to editors
About Venture Life
Venture Life is an international consumer self-care company focused on developing, manufacturing and commercialising products for the ageing population. The Group's product range and pipeline currently include food supplements for lowering cholesterol and maintaining brain function, dermo-cosmetics for addressing the signs of ageing, and medical devices for improving minor aches and pains, dry eyes and itchy skin. The products, which typically are recommended by pharmacists or healthcare practitioners, are available primarily through pharmacies supplied by the Group's international distribution partners.
Through its manufacturing company, Biokosmes, the Group also provides development and manufacturing services to companies in the medical device and cosmetic sectors.
The Group's own branded products are currently sold or partnered in over 40 countries and currently include:
· food supplements to maintain brain function and memory;
· dermo-cosmetics for addressing the signs of skin ageing and hair loss, and
· medical devices for improving conditions such as minor aches and pains, dry eyes and itchy skin.
The Company has a healthy development pipeline including products in areas such as diabetes, cardiovascular health, obesity, cognitive function and skin ageing. Products coming from the pipeline will be expected to have intellectual property protection and be supported by independent clinical evidence of efficacy.
About Gialen
Gialen was founded in 2005 and is headquartered in Guangzhou, China. Gialen is one of the largest cosmetics retail chains in China with over 1,000 stores and 300,000 customers daily.
Gialen sells an extensive range of products, listing some of the world's best known skincare, cosmetics and personal-care brands including L'Oreal, Shiseido, Olay and Nivea.