Shares in milk-formula producer Bellamy's have spiked following the announcement that a new China-focused formula brand has been approved by Chinese regulator SAMR.
The company is awaiting final certification of all changes from SAMR which it anticipates will be received shortly. Prior to producing, the parties may make further amendments to the approved artwork through the SAMR process, which could take months.
The new branded formulation-series will be produced at the ViPlus Dairy facility in Toora, Victoria.
The company says this line is part of its plan to build out a tiered-product portfolio and penetrate the China offline channel.
The group says that Bellamy's brand and its provenance has been very well received by Chinese consumers.
Shareholders have rejoiced at this announcement, with Bellamy's shares up 16.53 per cent to $11.21 per share at 1.26pm AEST.
Bellamy's will invest $4-6 million to transition the product and to secure long-term production capacity with ViPlus.
"This is the first step in recommencing sales in the China offline channel and executing a multi-tier product strategy," says Bellamy's CEO Andrew Cohen.
Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.
Business News Australia
Get our daily business news
Sign up to our free email news updates.
Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support