Defence lawyer Greg Barns said the elements of Kronic kept changing and might not fall within the substances banned by Victorian law.
Wielenga was granted bail on a A$100,000 surety and is to reappear in court on March 18.
Dressed in jeans and a dark T-shirt, he appeared to be listening intently throughout the court hearing.
The New Zealander must stay at an address in the suburb of Richmond, report to local police daily and surrender his passport.
Wielenga is a director of Lightyears Ahead, the company responsible for bringing Kronic to New Zealand. Kronic is laced with chemicals mimicking cannabis and is often much stronger than the real thing. It was banned in New Zealand in August.
Wielenga, who ran his lucrative Kronic empire from Albany on Auckland's North Shore, is understood to have travelled to Australia with about nine of his employees last week.
The group were in Australia for a music festival, a source said.
Nisha Din, described as the general manager of Lightyears Ahead, said the firm strongly denied any illegal activity. She referred the Herald to Wellington law firm Chen Palmer.
Partner Mai Chen did not return calls last night.
Wielenga describes his party pill business on his Facebook page: "I run my own company that provides products to get people high. They are sold all over the world, which gives me a great excuse to travel."
