JAT has granted exclusive distribution rights to AustAgri Pty Limited to sell Golden Koala Premium Range Infant Formulas in mainland China over a five year period, in a $98 million distribution agreement.
The agreement gives AustAgri exclusive rights to distribute and sell the 900g Chinese language versions of Golden Koala’s Premium Range Infant Formulas in mainland China, and non-exclusive right to distribute and sell the products via commerce platforms into Hong Kong, Macau and Taiwan.
AustAgri must order a minimum volume in each of the five years of the agreement, generating approximately $98 million in revenue for Golden Koala.
The agreement requires AustAgri to pay a $1 million deposit in two instalments in order to secure the exclusivity. The first 50% is due within seven days of signing the agreement (refundable should JAT fail to secure the requisite regulatory approvals within 12 months) and the remainder is due within seven days of receiving regulatory approval to sell the products within China. Should AustAgri at any time fail to place the minimum orders, it would forfeit the $1m deposit, and it’s exclusive rights would terminate.