New Zealand dairy producer Synlait has signed an agreement with Munchkin Inc. to launche a new infant formula in the US and China.
Munchkin is a California, US-based company that develops infant and toddler products including feeding accessories, toys and security equipment.
The infant formula is claimed to be made under the Grass Fed standard where cows are required to graze exclusively on a pasture and crop-based diet, with no feeding of grain, or feed not grown in New Zealand.
Synlait managing director Doctor John Penni said the company had been looking at opportunities to reduce its exposure to China.
“We are cognisant of ensuring our infant formula business does not become overly reliant on the China market, and so Munchkin, with its focus on the United States market, is a potentially important addition to our growing portfolio of retail-ready infant formula customers”, he said.
Munchkin CEO Steve Dunn added: “The new standard, and a unique Grass Fed infant formula line to meet growing consumer demand, particularly in the United States, is a big opportunity for Munchkin. Our forecast gross revenue for FY15 is over US$300 million, and we expect the growth of the Grass Fed infant formula business to contribute significantly to our bottom line over time”.
Source: Synlait / Munchkin