Bay of Plenty Times
  • Bay of Plenty Times home
  • Latest news
  • Business
  • Opinion
  • Lifestyle
  • Property
  • Sport
  • Video
  • Death notices
  • Classifieds

Subscriptions

  • Herald Premium
  • Viva Premium
  • The Listener
  • BusinessDesk

Sections

  • Latest news
  • On The Up
  • Business
  • Opinion
  • Lifestyle
  • Property
    • All Property
    • Residential property listings
  • Rural
    • All Rural
    • Dairy farming
    • Sheep & beef farming
    • Horticulture
    • Animal health
    • Rural business
    • Rural life
    • Rural technology
  • Sport

Locations

  • Coromandel & Hauraki
  • Katikati
  • Tauranga
  • Mount Maunganui
  • Pāpāmoa
  • Te Puke
  • Whakatāne
  • Rotorua

Media

  • Video
  • Photo galleries
  • Today's Paper - E-Editions
  • Photo sales
  • Classifieds

Weather

  • Thames
  • Tauranga
  • Whakatāne
  • Rotorua

NZME Network

  • Advertise with NZME
  • OneRoof
  • Driven Car Guide
  • BusinessDesk
  • Newstalk ZB
  • Sunlive
  • ZM
  • The Hits
  • Coast
  • Radio Hauraki
  • The Alternative Commentary Collective
  • Gold
  • Flava
  • iHeart Radio
  • Hokonui
  • Radio Wanaka
  • iHeartCountry New Zealand
  • Restaurant Hub
  • NZME Events

SubscribeSign In

Advertisement
Advertise with NZME.
Home / Bay of Plenty Times

Comvita stake strengthens China ties

Bay of Plenty Times
6 Sep, 2016 09:51 PM3 mins to read

Subscribe to listen

Access to Herald Premium articles require a Premium subscription. Subscribe now to listen.
Already a subscriber?  

Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech.
‌
Save
    Share this article
Scott Coulter. Photo/Greg Bowker

Scott Coulter. Photo/Greg Bowker

Bay of Plenty-based honey and health products company Comvita has signed a 51-49 joint venture with its long-term distributor in China, Shenzhen Comvita Natural Food Co. (SCNF), strengthening existing strong links between the companies.

Comvita's 51 per cent stake will be acquired by issuing 2.83 million shares at $10.60 per share, valuing its stake at $30 million. On completion of the deal, the family of Zhu Guangping, SCNF's controlling shareholder, will own 10.07 per cent of Comvita, up from just over 5 per cent.

"SCNF has worked with Comvita for more than 12 years and the relationship is very strong, beginning with just two staff and now employing more than 200 staff throughout China," said Comvita chief executive Scott Coulter.

The SCNF-Comvita business has experienced a compound annual growth rate of 30 per cent since 2004 and Chinese customers ultimately consume approximately 60 per cent of Comvita's total sales, whether in China, or via tourists in Australasia, Hong Kong or other parts of the world, he said.

Comvita chairman Neil Craig said forming the joint venture had been a long-term objective, and the structure had been under discussion for 12 months. Comvita's distribution relationships differed from many in that SCNF only handled Comvita products, he added.

Advertisement
Advertise with NZME.
Advertisement
Advertise with NZME.

"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."

Advertisement
Advertise with NZME.

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."

Save
    Share this article

Latest from Bay of Plenty Times

Bay of Plenty Times

Women urge promoter boycott after sex crimes case revealed

11 Sep 07:04 AM
Bay of Plenty Times

Worker critically injured in fall at business; WorkSafe investigating

11 Sep 03:35 AM
Bay of Plenty Times

Green screening: Farmers feature in environmental film

11 Sep 02:31 AM

Sponsored

Kiwi campaign keeps on giving

07 Sep 12:00 PM
Advertisement
Advertise with NZME.

Latest from Bay of Plenty Times

Women urge promoter boycott after sex crimes case revealed
Bay of Plenty Times

Women urge promoter boycott after sex crimes case revealed

He founded Bay Dreams and One Love and is promoting a Snoop Dogg show this month.

11 Sep 07:04 AM
Worker critically injured in fall at business; WorkSafe investigating
Bay of Plenty Times

Worker critically injured in fall at business; WorkSafe investigating

11 Sep 03:35 AM
Green screening: Farmers feature in environmental film
Bay of Plenty Times

Green screening: Farmers feature in environmental film

11 Sep 02:31 AM


Kiwi campaign keeps on giving
Sponsored

Kiwi campaign keeps on giving

07 Sep 12:00 PM
NZ Herald
  • About NZ Herald
  • Meet the journalists
  • Newsletters
  • Classifieds
  • Help & support
  • Contact us
  • House rules
  • Privacy Policy
  • Terms of use
  • Competition terms & conditions
  • Our use of AI
Subscriber Services
  • Bay of Plenty Times e-edition
  • Manage your print subscription
  • Manage your digital subscription
  • Subscribe to Herald Premium
  • Subscribe to the Bay of Plenty Times
  • Gift a subscription
  • Subscriber FAQs
  • Subscription terms & conditions
  • Promotions and subscriber benefits
NZME Network
  • Bay of Plenty Times
  • The New Zealand Herald
  • The Northland Age
  • The Northern Advocate
  • Waikato Herald
  • Rotorua Daily Post
  • Hawke's Bay Today
  • Whanganui Chronicle
  • Viva
  • NZ Listener
  • Newstalk ZB
  • BusinessDesk
  • OneRoof
  • Driven Car Guide
  • iHeart Radio
  • Restaurant Hub
NZME
  • About NZME
  • NZME careers
  • Advertise with NZME
  • Digital self-service advertising
  • Book your classified ad
  • Photo sales
  • NZME Events
  • © Copyright 2025 NZME Publishing Limited
TOP