Wattle Health Australia Ltd’s (ASX: WHA) receipt of its first paid order from a distributor in Macao Special Administrative Region quickly follows its first order from India.
The Macao order enables Wattle Health to serve the domestic market in Macau, while also taking advantage of the large cross-border opportunity into China.
The order was an endorsement of the company’s products in that it covered its entire nutritional range from infant formula to maternal nutritional milk and full cream milk.
Large demand from tourists
Though Macau has a population of approximately 650,000, it is a popular tourist destination with visitors of 36 million per year.
This large tourism market and the geographic proximity to China makes indicates Wattle Health’s entry into Macau is strategically important.
The attainment of China Food and Drug Authority (CFDA) accreditation for the company’s conventional cow infant formula is expected to have a positive impact on sales in 2018.
International footprint and group sales growing
The company is expanding into new international markets and this should have a positive impact on the strong sales growth that is already being achieved.
Wattle Health’s gross sales were $329,000 in January. This represents 35% of sales for FY2017 and 61% of sales in the December quarter.
Track record of meeting regulatory requirements
The company’s entry into India demonstrates that it has the ability to meet the regulatory requirements of international markets.
This effectively opened the door for the company to compete in one of the most populated areas in the world where almost half the population are under the age of 25.
India has an extensive regulatory regime for the importation of food, and Wattle Health has successfully met their strict criteria which has allowed them to enter this lucrative market.