"The JV will bring us a lot closer to the market and participation in local pricing decisions," he said. "It will also give us a lot more incentive for us to increase our product range and move it down the distributor channel."
Mr Coulter said being on the ground inside China was a key building block to Comvita's future growth strategy. Comvita has a track record of building up exclusive distribution positions globally and then acquiring them back at the right time, he said, noting that the company had acquired its UK distributor in 2005 and its Hong Kong distributor in 2007.
"China is a much bigger and more extensive proposition and we chose to adopt a JV business model with our Chinese partner, who has a proven track record of achieving results on the ground."
SCNF is owned by 80 per cent shareholder Zhu Guangping, who also owns premium China Duty Free Group franchises. Mr Zhu's wife, Li Wang, an NZ citizen, currently owns 5.12 per cent of Comvita and on completion of the JV the Zhu family will own 10.07 per cent. The remaining JV shares will be issued to Lily Sun, SCNF's general manager and 20 per cent owner.
"I believe that Comvita can build on its premium position in China and continue its progress in being one of the leading foreign brands in the natural health food market," said Mr Zhu.
"I am also a believer in Comvita's global business opportunities."