Capilano Honey has expanded its collaboration with global health products company Comvita with the signing of a Memorandum of Understanding (MOU) for the formation of a new, jointly-owned apiary business that will operate a number of Leptospermum honey producing apiaries in Australia to deliver premium honey for a range of medical and natural health products.
Capilano and Comvita have already been involved in a joint research initiative to investigate the medicinal properties of Australian Leptospermum honey.
The incorporated joint venture – to be owned 50:50 by the two parties – will see Capilano expand its specialised Leptospermum apiary operation in Australia and allow Comvita to secure greater volumes of Leptospermum to meet a growing global sales demand.
“In order to best satisfy growing sales, both companies recognise the need to expand their operations and grow the supply based for premium quality honey, especially in Australia. Both businesses believe they will achieve significant long term benefits by working together,” Capilano said in statement to the ASX.
“The formation of a joint venture is subject to the execution of appropriate transaction documentation that is to be expeditiously agreed by both parties. Capilano believes this new venture will assist our business by increasing the security of supply and by expanding our involvement in the international value chain for Leptospermum or Manuka honeys. ”
Comvita – which currently operates in Australia in a sales and marketing capacity – is the world leader in Manuka honey and fresh-picked Olive Leaf Extract, which are at the core of the Comvita product range.
The company has approximately 50% of honey supply in New Zealand under direct ownership or control, with the balance of supply from long term contractual and partnership arrangements.
Comvita pioneered the development and the use of medical grade Manuka honey and was the first to receive FDA approval in 2007.