March Quarter Report

Seed sales, which have been very low in March Quarters to date, were up 10-fold on March Quarter 2018 (and over 20-fold on March Quarter 2017). New trials commenced in Australia and the United States, and market penetration in Victoria is gaining traction. 

Implementation of Abundant Natural Health’s revised marketing strategy proceeded ahead of schedule in the March quarter with three domestic distribution agreements driving shelf placement in Australia, and the launch of the Chinese language website, together with associated social media.

Highlights

  • Seed sales up 10-fold on March Quarter 2018, market penetration in Victoria gaining traction
  • New trials commencing in Australia and Canada
  • 300,000 ACL 516 cucumber seeds in inventory, ready for winter season sales
  • Storm damage urgent repairs completed, remaining damage being assessed by insurer
  • Storm damage R&D delays of approximately six months
  • Abundant Natural Health placement in 500 stores across Australia, targeting 2,000 stores over a 12 month period
  • Launch of Abundant Natural Health WeChat store, Chinese language website and associated Chinese media
  • Therapeutic Goods Administration approval of Magnesium Spray and a Magnesium Gel for pain relief
  • New product launch: Exfoliating Body Bar rich in magnesium, olive oil, goat’s milk and Jojoba beads
  • New salt lotion in development for psoriasis and eczema/dermatitis, more products in the pipeline

For more information, access the full quarterly report here.

ANH Extends Distribution

Abundant extends shelf presence through Symbion, a national wholesaler of healthcare services and products with over 3,500 retail pharmacy customers

Highlights

  • Abundant Natural Health has secured agreement with leading Australian pharmacy wholesaler Symbion for its all natural, pain relieving magnesium products to be stocked and promoted in-store and online
  • Symbion is a national wholesaler of healthcare services and products with over 3,500 retail pharmacy customers across Australia.
  • Sales are expected to commence in the current quarter

Following an extensive marketing and testing campaign supported by ANH’s healthcare sales partner HealthOne, Abundant is pleased to announce a significant extension of its distribution capacity in the Australian pharmacy market.

ANH has secured agreement for its all natural, pain relieving magnesium products to be stocked and ranged in-store and online across the networks of Symbion Wholesale (part of the listed EBOS Group, ASX: EBO). 

From ten warehouses strategically located across Australia, Symbion Wholesale distributes to over 3,500 pharmacies including the Good Price, Terry White Chemmart, Blooms, and Ventura Health chains.

“This is another exciting milestone for Abundant Natural Health”, General Manager Shanan Birkin said. “It demonstrates the degree of interest in our range of high purity natural magnesium pain relief products and will serve to drive sales and brand awareness, both in Australia and overseas.

“Pharmacy and consumer acceptance of the Company’s Magnesium Gel and Magnesium Spray will also open the door for our expanding range of products, starting with an exfoliating body bar rich in magnesium, olive oil, goats milk and Jojoba beads which we plan to offer to the market in the very near future.”

Shelf presence in major Australian API pharmacy chains

Highlights

  • Abundant gains acceptance for its skincare products to be stocked, ranged and promoted in-store and online through the networks of pharmacy operator and distributor Australian Pharmaceutical Industries Ltd (ASX: API)
  • Abundant and API to make ANH’s high-purity magnesium portfolio SKUs available to all pharmacies within API’s network, including Priceline Pharmacy, Soul Pattinson Chemist and Pharmacist Advice
  • First sales anticipated in H1 of CY19, with scope identified to broaden this distribution channel to cover ANH’s full range of nutraceutical products

Following an eleven-month marketing and testing campaign supported by HealthOne, ANH’s sales partner in the healthcare channel, the Company is pleased to announce a significant new distribution channel in the Australian pharmacy market.

ANH has gained acceptance for its magnesium products to be stocked and ranged in-store and online across the networks of Australian Pharmaceutical Industries Ltd (ASX: API).

API is a leading wholesale distributor to more than 2,000 pharmacies across Australia, and is the operator of Priceline Pharmacy (more than 460 stores across Australia), Soul Pattinson Chemist and Pharmacist Advice.

Abundant Natural Health’s company manager , Shanan Birkin, said:“We are delighted to have such a strong new partner in the pharmacy channel stock and sell our innovative skincare product range.

“Australian domestic acceptance is important to our business, not only for the sales, but also as a base of credibility and recognition through which we can grow sales in our targeted international markets.

“It is a credit to our products, packaging and marketing team for ANH to have received acceptance from API in this highly competitive market.”

The Company’s high-purity magnesium portfolio, which now includes our rebranded Magnesium Gel and Magnesium Spray will now become fully accessible to all pharmacies within API’s network.

The Company has identified scope to broaden this initial distribution to cover ANH’s expanding Magnesium range, following the achievement of sales milestones across its magnesium portfolio.

Ms Birkin added:

“Our magnesium range is a keystone product for ANH, attracting interest from top sellers of skincare and health products. Our new partners at API appreciate ANH’s truly authentic active natural ingredients together with a look, packaging and feel that appeals to consumers.

“To understand the market, you have to cherish your customers and deliver quality that works. ANH is building a loyal following and we work hard at communicating the magnesium message – the benefits it delivers to a broad range of people seeking relief from aches and pains, from ‘twenty-somethings’ feeling the effects of a hard workout, to octogenarians wanting to improve their quality of life.”

ANH anticipates these distribution arrangements to generate sales in the first half of CY19.

Delivering delicious nutrition by the tonne

This summer Abundant Produce harvested a bumper crop of super-sweet cherry tomatoes, and donated around two tonnes of these delicious vegetables to SecondBite, delivering delicious nutrition to Australia’s neediest families and individuals.

Over a million Australians regularly go hungry, and this food insecurity exposes them to increased risk from a range of diet-related illnesses including cardio-vascular disease and diabetes prompting Ian and Simone Carson to establish SecondBite in 2005, determined to deliver fresh nutritious food to those most in need.

SecondBite has now delivered over 50 million kilograms of food to over 1,300 community food programs across Australia and, following their commitment to nutrition, 75% of their food deliveries are of fresh fruit and vegetables.

Food security is at the core of what we do,” Abundant’s Chief Research Scientist, Dr Nabil Ahmad said, “All of our plant breeding takes place under harsh Australian climactic conditions. We deliberately expose the plants to stresses like diseases and high temperatures and salinity, then we select the plants that do best under these difficult conditions. This is completely different to conventional breeding, which takes place under optimal conditions and favours presentation rather than nutrition.

Our plants produce vegetables with less fertiliser, less pesticides and less temperature control, decreasing the impact of horticulture on the environment, and as well as increasing sustainability, our plants will grow better in those parts of the world where the food is needed most, places with harsh climates like Australia’s – in Asia, the Middle East and Africa.

Abundant’s tasty tomatoes are now being delivered by SecondBite to community food programs in the greater Sydney region, naturally providing some of Australia’s most vulnerable citizens with essential vitamins and minerals.

Abundant Seeds is a collaboration with Sydney University’s Plant Breeding Institute,” Dr Ahmad said, “so helping to feed the billion hungry people worldwide is an important part of what we do and we won’t ignore the hungry on our own doorstep.

A sweeping change

A change is sweeping through Australia’s cucumber growing industry, yielding big results.

Australian cucumber growers faced a challenging winter, dealing with extended cold periods, often with ice coating their greenhouses and losses of up to 40% of their crops due to cold strike (fruit scurfing).

Now they are planting summer crops and, with the Australian Bureau of Meteorology placing an 80% likelihood on hotter than average conditions (day and night) for November to January, heat stress is a major concern. Plants subject to extended periods of high temperatures, particularly when the thermometer doesn’t give them a break overnight, become more susceptible to pest and disease outbreaks, and can react by aborting their fruit. Grower yields plummet and, at worst, crops fail completely.

An expanding cadre of growersare facing the change of seasons with new confidence because they have a secret weapon. Plant Abundant Seeds. Making one tiny change, growers report greater cold and heat tolerance, more vigorous growth and fruit production, a longer picking cycle, and fruit with improved colour, shape and uniformity.

Abundant’s plants are healthier” “Abundant’s plants are more suited to my growing environment” “Next winter the full crop will be Abundant” “Will grow only Abundant cucumbers again next summer” These are some of the comments from growers who trialed Abundant cucumber seeds in 2018.

Sound too good to be true? Why should Abundant’s seeds be so much better?

Abundant Seeds teamed up with Sydney University’s Plant Breeding Institute (PBI) in 2011, and since then, plant scientists have been breeding cucumbers suited to Australian conditions and low tech (unheated, uncooled) greenhouses. This is in stark contrast with internationally sourced horticultural seeds bred in high tech, climate-controlled greenhouses in Europe or the United States.

Abundant Seeds’ absolute focus is to provide better options and better results for growers, and in turn superior fruit for consumers,” Abundant’s Sales and Operations Manager, Sarah Pearson said. “We produce high quality varieties, here in Australia for Australian production. We, and Australian growers, are enormously fortunate to have this collaboration with the University of Sydney PBI. Their scientists are able to breed plants that offer substantial advantages to growers without the need for major changes in crop management. For our first winter and spring season trials to be so successful and so well received by growers is proof that we are on the right track, and that there is strong demand for locally developed seeds.”

With all the scientific and breeding expertise on hand in Australia, Abundant seeds is also able to offer growers unparalleled after sales service.

We view ourselves as being in partnership with our growers,” Sarah Pearson said. “If they have an issue or technical question, I can get them an answer quickly. We are now working with the growing community on backing up our success over summer with many crops planted in the last fortnight, with a strong strike rate for germination. This sets up both growers and Abundant for an exciting summer and 2019.”