Australian natural health foods maker Blackmores is partnering with dairy nutritional product maker Bega Cheese to set up a joint venture to develop and manufacture nutritional foods.
The two companies will produce new product range, which will include infant formula. This formula will be manufactured at Bega's Tatura facility located in northern Victoria.
Bega Cheese, which is a farmer-based former cooperative, will become the exclusive supplier of Blackmores and Tatura products. It will supply the products from early 2016, The Land reported.
The deal is expected to combine Blackmore's expertise in health sector and Bega's knowledge in dairy manufacturing. The two Australian brands have committed to sustainable sourcing of ingredients in order to deliver nutritional infant formula products across Australia and Asia, Foodmag.com.au reported.
Bega Cheese chairman Barry Irvin was quoted by Foodmag.com.au as saying: "We are aware from our presence in the Asia region that there is significant demand for infant formula and we believe that, with the combination of Blackmores and Bega, we are uniquely positioned to support those women unable to breastfeed."
The joint venture will help the companies benefit to meet the increasing demand for infant formula in Chinese market, according to Blackmores chief executive Christine Holgate.
Tatura, which is Bega's subsidiary, will manufacture the products. It aims to take advantage of the rising demand in China and other Asian countries for Australian health supplement products.
Bega Cheese already already has a supply agreement with Tasmanian organic baby food and infant formula company Bellamy's.
