New Zealand manuka honey company Comvita is linking up with its Australian counterpart Capilano Honey to form an apiary business in Australia.
The companies have signed a memorandum of understanding to form a jointly-owned business which will produce leptospermum honey, commonly known as manuka, for medical and natural health products, Te Puke-based Comvita said.
Comvita has sales and marketing operations in Australia and the venture with Capilano will enable it to secure greater volumes of honey to be processed in Australia to meet growing global demand.
For Capilano, the venture will help it expand its specialised leptospermum apiary operation in Australia and secure greater honey supply.
"Comvita and Capilano have already been involved in a joint research initiative to investigate the medicinal properties of Australian leptospermum honey," Comvita said.
"In order to best satisfy growing sales, both companies recognise the need to expand their operations and grow the supply base for premium quality honey, especially in Australia.
"Both businesses believe they will achieve significant long-term benefits by working together."
Comvita and Capilano are benefiting from consumer demand for health and wellness products. Comvita's shares closed up 8c yesterday at $10, and have gained 119.789 per cent over the past year, making it one of the best performing stocks on the S&P/NZX All Capital Index.