Nutreat, a leading provider of nutrition products to Aged care and hospitals across Australia, has expanded its reach by crossing borders and cracking the Chinese Senior living market. Over the past 18 months, Executive Director of Nutreat Matt Weston has been working tirelessly to expand its customer base into Asia, particularly China.
Having extensive experience in doing business and living in China, Matt Weston is extremely happy that Nutreat, Albeit small in size in Australia, has secured a licensing agreement in mainland China selling directly to Senior Living centres. When discussing the agreement, Mr Weston said, “Over the past 18 months myself and the board of Nutreat have been committed to expanding the successful local brand into new markets.”
Nutreat’s objective is to deliver a delicious, nutrient-rich supplement powder and snacks for individuals who may need protein supplements, energy, vitamins, and minerals in between or with meals. Malnutrition in older persons can be caused by several causes, such as loss of appetite, impaired chewing and swallowing abilities, and increasing usage of prescription drugs. There are numerous risk factors such as anxiety, Alzheimer’s, chronic diseases, and an absence of availability to optimally nutritional food, whether due to food insecurity or a lack of skill to produce and shop for food.
The Nutreat Executive Director Matt Weston, is no stranger to the intricacies of competing for negotiations in China, living Beijing for over five years and working as a top executive for one of China’s wealthiest individuals and corporations. Nutreat’s top leadership is ecstatic about their extraordinary accomplishments and is determined to continue developing and producing high-quality products to improve people’s quality of life.
The aged care sector in China is booming and will continue to grow over the coming decades with China tipped to reach over 400 million people over the age of 65 in the coming years leaving exceptional growth opportunities. Mr Weston added, “It’s taken 18 months to get to a Binding agreement and that when dealing and working with SOE’s (State owned enterprise) things always take time, especially when they are of the magnitude that this agreement covers.”
Nutreat products are high in protein, calcium, vital amino acids, vitamin D, and minerals. They give a custom tailored meal specific plan to lower the risk of deficiency while supporting optimal digestion and absorption. More than any other necessary nutrient, protein is essential for increasing bone strength and reducing the danger of muscle loss.
With so many brands and companies trying to penetrate the infant formula market Mr Weston said “Nutreat made a strategic decision to focus on the aged care sector.” with so many brands from Australia, New Zealand, Europe, USA and Japan fighting it out for a piece of the baby formula market coupled with the resurgence of local Chinese brands I just felt that this market opportunity has passed.” Mr Weston continued, “Although Nutreat has a product suitable for Children aged 11 and older I’m also conscious on the cost to acquire new customers in China.”
With Beijing focusing on the level and scope of care for it’s growing elderly population, Nutreat could be out the front of a new wave that may grab more attention and hence more competition in the coming years. The challenge for Mr Weston and Nutreat will be executing and growing the agreement to meet it’s contracted minimum delivery numbers worth over $120,000 per day in fees.
Mr Weston said, “To ensure we can manage our current contracted licensing commitments we will set up a China based office in Beijing in 2022 which I will manage personally once Covid restrictions allow” Mr Weston understands more than anyone the importance of setting up localized offices in China with Chinese staff if a foreign brand is to have long term success in China.
Let’s see how this “small” Aussie company manages China, they certainly have scored a major win by securing this large agreement.