Biome Australia has signed a manufacturing agreement to bring production of its Activated Probiotics range to Australia, marking the first phase of the company’s strategy to increase control over its manufacturing and supply chain operations.
The ASX-listed company announced it had entered into a commercial manufacturing agreement with Specialty Probiotics Australia (SPA), a GMP-licensed Australian manufacturer specialising in probiotic production.
Under the agreement, manufacturing of the Activated Probiotics range will progressively transition to Australia, with the first commercial batch targeted for September 2026 and the full product range expected to move onshore over approximately 18 months, subject to successful commercial scale-up.
According to Biome, the agreement does not require any upfront capital investment and is expected to deliver operational and financial benefits, including improved working capital efficiency and higher gross margins.
SPA chief executive officer Craig Silbery said the partnership would support Biome’s growth plans and product development activities.
“We are excited to be working with Biome and to support them strategically as they scale, by removing barriers in production and the supply chain and by supporting new opportunities in product development,” Silbery said.
“Biome and its Activated Probiotics brand are among the most exciting, high-growth brands in the Australian market, and increasingly in global markets, and we look forward to the journey ahead together.”
Biome said producing in Australia in smaller, more frequent batches is expected to reduce inventory holdings, improve stock turnover and eliminate extended international freight lead times. The company also expects the move to improve product shelf life before reaching customers.
Biome chief financial officer Lauren Dwyer said the transition was expected to improve profitability while reducing capital tied up in inventory.
“Our current gross margin of approximately 61% is already strong and has been delivered without a single retail price rise since we launched Activated Probiotics in 2019,” Dwyer said.
“From a financial perspective, we believe this partnership will progressively lift our gross margin to 65%+ over the next 18 months as the range transitions to Australian production.”
Biome said it would continue working with its European manufacturing partners to service European markets, maintaining supply chain diversification while adding Australian manufacturing capability.
The company also said Australian-made production could provide a competitive advantage in export markets and support its commitments as a certified B Corporation through a reduced international freight footprint.
Biome founder and chief executive officer Blair Vega Norfolk said the move had been under consideration for more than two years and formed part of the company’s broader Vision 27 strategy.
“This move has been under consideration for more than two years and represents phase one of Biome’s journey to take greater control of its supply chain, manufacturing inputs and product intellectual property,” Norfolk said.
“As one of the cornerstones of our Vision 27 strategic plan, we are pleased to begin onshoring with SPA while continuing to assess further manufacturing opportunities over time.”
The content of this article is based on information supplied b Biome Australia. For more information, please refer to the official company announcement and communications from DroneShield. Please consult a licensed and/or registered professional in this area before making any decisions based on the content of this article.
