Thomson Geer has advised Australian health, wellness and beauty company McPherson’s Limited (ASX: MCP) on its joint venture (JV) agreement with Access Brand Management to expand sales of the Dr LeWinn’s range of anti-ageing products in Greater China. The Thomson Geer team consisted of Partner, David Zwi and Associate, Nicola Moldrich.
The JV builds on the existing relationship between McPherson’s and Access and is in line with McPherson’s strategy to drive growth in export markets by capitalising on the strong demand for Dr LeWinn’s products, including from Chinese consumers.
Under the terms of the agreement, Australian-based Access will acquire a 51% stake in a JV entity to be incorporated with McPherson’s in Hong Kong. McPherson’s will transfer to the JV entity certain trademarks registered in mainland China, Hong Kong, Macau and Taiwan.
Access and the JV entity will be granted exclusive distribution rights for Dr LeWinn’s branded products throughout Greater China.
McPherson’s managing director Laurence McAllister said the Dr LeWinn’s range had seen “incredible success” in the Chinese market with consumers attracted to its clinically-proven formulas and premium products.
He said the JV would “be targeting further growth of Dr LeWinn’s in Greater China [and also] elevating the value of the brand globally.”
Dr LeWinn’s has been managed and distributed by Access across Greater China for the past two years. Regional sales have grown from $400,000 in the 2017 financial year to $3.3 million in 2018 and $16.7 million this year.
McPherson’s is targeting net sales of $25 million for the 2020 financial year. If that target is achieved, the Chinese market would become the largest offshore market for McPherson’s, accounting for approximately 12% of total sales, and Dr LeWinn’s would become the company’s most profitable brand.