MGC Pharmaceuticals (ASX:MXC) will soon be selling its “CBD and hemp-enhanced nutraceutical products” into the burgeoning Chinese health products market.
MXC has signed an agreement with US-based YuShop Global – a Chinese specialist e-commerce retailer that specialises in the importation and sale of health and wellness products into China.
Under the agreement, YuShop will be responsible for all “sales, marketing, logistics and customer service for the range in China” that includes MXC’s CBD Hemp Protein Powder, BCAA CBD capsules, CBD Water Soluble Solution, CBD Herbal V-Pen and three strengths of CBD oil.
Roby Zomer, Co-founder and Managing Director of MXC said the “expanded sales distribution into China represents a significant step forward in the commercialisation strategy of MGC Pharma’s Nutraceutical range.”
YuShop’s own e-commerce platform will promote the products and its network of 1,500 retail channel partners in China including a luxury spa chain.
In its announcement the company said that there are 350 million middle-class Chinese health and wellbeing shoppers that are expected to purchase nearly US$20 billion worth of vitamins and supplements in 2019 – and MXC hopes to make a dent in that.
Popularity and demand to be driven by superior product offering
“MXC’s current product offering, along with their product roadmap, is going to lead a technology-backed CBD product demand surge in China,” said the Nathan Halsey, CEO of YuShop.
“Where most CBD brands today are limited to CBD Oil tinctures and gel tablets, MXC’s expanded line of CBD-infused protein powders, multi-purpose vitamins, and nutraceuticals are not only advanced for the UK and North American markets, they are in a category of their own currently in China,” he continued.
MXC’s range of products are hemp-based and are designed to promote physical balance and wellbeing.
“The products are rich in plant-based proteins, high-quality Hemp CBD and a wide spectrum of vital vitamins and minerals to fuel and recharge your body’s systems, with essential branched-chain amino acids to build your body’s vital proteins.”
Phytocannabinoids work with the body’s endocannabinoid system to produce a variety of therapeutic effects.
The endocannabinoid system is a link between the body and the brain and has been called “the most important physiologic system involved in establishing and maintaining human health.
The products are vegan friendly and have been manufactured and under MXC’s “strict quality control guidelines and standards”.
MXC hopes it products will be favourable among Chinese consumers given the “perceived superior quality” of foreign produced products.
The agreement will kick off with an eight-week market test and analysis that will lead to a full-scale campaign beginning in June.
This content is produced by Star Investing in commercial partnership with MGC Pharmaceuticals. This content does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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