Located in Sydney, the new set up will serve both Australia and New Zealand (ANZ) markets, particularly in the areas of supplements, dairy, and sports nutrition – the three fastest growing categories in the region.
The new operation will supply ANZ markets with nutritional premixes from its China facility.
“The decision to expand into ANZ will further strengthen our service capabilities in the fast-growing APAC market, while also helping us meet the needs of ANZ specifically, which is very different from other Asian markets.
“Categories such as sports nutrition and dairy are increasingly important in Australia and New Zealand, so it was essential for us to hold local inventory and offer support and expertise to our growing ANZ customer base,” said group managing director, Nic Dam.
Examples of ingredients supplied by the firm for nutraceutical use include vitamins, amino acids, preservatives, proteins, aroma chemicals, and sweeteners.
Others include the firm’s nutritional premixes which can take the form of bespoke vitamin and mineral blends as well as amino acid blends.
Earlier this month, the Illinois-based firm was acquired by Japanese chemical trading firm Nagase Group, which further underscores its expansion into APAC.
Concerns around ingredient origins
Besides China, Prinova said it could also supply ingredients to the ANZ markets from Europe or the US.
At present, the firm does not have a premix production facility in Australia.
In response to queries from NutraIngredients-Asia, Dam said that a key advantage of using premixes from China was competitive price.
“The key advantage of using premixes from our Chinese production site is the price advantage. With many of the raw materials only being produced in China the local production helps customers in the APAC region achieve significant cost savings.”
He added that the firm could supply customers with ingredients from production sites in Europe or the US if they preferred ingredients from outside of China.
The issue of Ingredient origin has become one of the most pressing concerns for Australian manufacturers who wish to make “Made in Australia” claims on their products.
This is because the country had previously introduced stricter criteria for making the claim.
Some firms, such as Nature’s Care, were originally not allowed to make the claim because it used imported ingredients.
There has been a turn of events since, with a consultation process, which may lead to changes in the regulations, underway.