26th Jan 2015 07:43
LONDON (Alliance News) - Venture Life Group PLC Monday said it has signed a 30-year distribution deal with Chinese retailer REC Cosmetics Ltd, a subsidiary of Gialen Group Co Ltd, a deal which will bring in around GBP40 million in sales for Venture Life.
Gialen operates over 1,000 retail skincare and cosmetics stores across China, and is currently embarking on a rapid new store-opening programme.
In a statement, Venture Life said that under the deal, REC has the exclusive right to sell an initial range of 15 skincare products in China, Macau, Hong Kong and Taiwan - including some products from Venture Life's anti-ageing range.
Venture Life will be the exclusive manufacturer and supplier to REC for all current and any future products under the agreement, the company said.
The range is expected to be launched in Gialen's stores in China in the second half of this year, and is subject to registration approval.
Venture Life said for the initial range, contractual annual minimum purchase obligations have been agreed and are worth around CNY52.8 million, or GBP5.7 million, in sales for Venture Life over the first five years. Overall, the full term of the deal is worth around CNY371 million, or GBP40 million, in sales for Venture Life, based on the minimum purchase obligations.
"Our Italian manufacturing capacity and capability has also been a major factor in securing this agreement, and further validates our strategic approach as an integrated product development, manufacturing and commercialisation company. We expect this deal to represent just the start of a very successful collaboration with Gialen in China," said Chief Executive Jerry Randall in the company's statement.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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