The firm says inspiration for venturing into bovine stems from the growing demand for products focusing on immunity and digestion found through extensive consumer research it has undertaken in Australia and China.
“Goat and bovine are vehicles. Based on what we have observed, China is relatively advanced in illness prevention. So, we are very interested in giving consumers that immunity boost,” Scott Koetsier, Nuchev’s Head of Sales & Business Development told NutraIngredients Asia.
While Nuchev’s products mostly targeted at infants at various growth stages, it has found unexpected traction across various demographics over the years.
Recognising that the same consumers who buy infant milk formula may also be drawn to products catering to older children, Nuchev strategically position its new bovine offering to complement its existing range.
“The primary focus of this product is school-going children in China while in Australia, the emphasis shifts towards adults. Given our overarching goal of enhancing digestion and immunity, it’s essential to appeal to a diverse range of consumers rather than concentrating on a single demographic group.”
Key ingredients and future markets
The new Oli6 Immunity+ full cream milk powder incorporates bovine-sourced colostrum, which is rich in minerals that support heart and bone health and aiding immune system development.
It also contains immunity-boosting Vitamin A and D, and lactoferrin, a protein presents in the colostrum, which plays a crucial role in regulating iron absorption and protecting against infections.
“Lactoferrin is a great ingredient, and we see it in many products in China too. It is one of the key reasons why consumers are gravitating towards our products so quickly.”
The bovine product is already available in both Australia, as well as China via cross-border e-commerce channels. Nuchev’s distrition network is predominantly supported by its retail division, distribution partners, and presence on prominent online platforms such as Tmall, JD, and VIP.
“The product launched in time for the Double 11 sale in China. So, from a sales perspective, the results are looking extremely positive. It’s nearly double from what we have expected to be at the beginning – an encouraging kickstart.”
“As of now, we lack sufficient data to gauge the performance of this new bovine product in markets beyond Australia and China. However, as a company, we are eager to explore opportunities in Southeast Asia, potentially Vietnam and Singapore.”
Strategic distribution agreement with H&S Group
Koetsier highlights the substantial impact of Nuchev’s strategic distribution partnership with H&S Group on the successful development of Oli6 Immunity+ full cream milk powder.
H&S Group has a robust presence in China and effective since July, it is the exclusive distributor of Nuchev products in China, Hong Kong, Macau, and Vietnam. The bovine product is the first creation under this agreement.
“We leverage the expertise of H&S Group, capitalising on their insights into consumer preferences, buying habits, and purchase patterns. This allowed us to effectively address the targeted needs when we were developing this new product.”
“We won’t be able to do so readily and quickly without H&S Group. They were equally committed and proactive during the lunch of the bovine product too. So, it’s a win-win for us.”