Swisse’s parent company Health and Happiness Group (H&H Group) announced the above yesterday (Aug 26) in its financial results for the first half of this year.
The company’s Vitamin, Herbal and Mineral Supplement (VHMS) segment - which comprises of Swisse’s products - grew by 5.8% in revenue from RMB$3.3bn (US$455.2m) to RMB$3.4bn (US$477.5m) during the period.
China, Australia, and New Zealand are the three major markets for Swisse.
In China, innovations that cater to consumers’ evolving needs in beauty-from-within, detox and aging were said to be a key reason driving Swisse’s revenue growth.
“We have been capitalizing on the aging population and demand for innovative anti-aging solutions, focusing on high margin, structurally growing anti-aging supplements.
“Swisse is uniquely positioned to capture this growing segment and unlock new growth potential,” Suceka Li, rotating group CEO and CEO for China at H&H Group said.
Some examples of these innovations include nicotinamide adenine dinucleotide (NAD+) and ergothioneine (EGT) products and other products under its Swisse and Swisse Plus brands.
Growth in China was also spurred by online retail, not only via cross-border e-commerce (CBEC) platforms like Tmall and JD.com, but also social commerce platforms like Douyin - China’s version of TikTok.
“Douyin has proven to be a powerful growth engine for us, registering 80.3% growth, with our well-executed strategy propelling us to the No. 4 position in the VHMS category on this platform,” Li added.
The company has also ventured into new retail channels in China, such as Sam’s club, which covers both CBEC and normal trade. Revenue in such channels had increased by 28.2%.
Overall, H&H Group’s total revenue was up 4.9% from RMB$6.7bn (US$934.9m) to RMB$7.0bn (US$980.6m).
Adjusted net profit climbed 4.6% from RMB$347.2m (US$48.5m) to RMB$363m (US$50.7m).
Aside from Swisse, which is H&H Group’s largest segment, the company also produces infant formula, paediatric probiotics and supplements under the brand Biostime, as well as pet nutrition under the Solid Gold and Zesty Paw brands.
Magnesium glycinate, kids gummies drives Swisse’s ANZ sales
Australia and New Zealand formed the second largest markets for Swisse, and growth in this region was driven by new products such as magnesium glycinate and kids gummies.
The innovative new launches were also said to have offset decline in its corporate “daigou” business in ANZ.
“Daigou” refers to agents who purchase goods from overseas and then sell the products in China. The sector flourished pre-COVID.
“In ANZ, the domestic market delivered steady mid-single-digit growth, while export sales fell as expected following a decline in the corporate daigou business,” said Li.
“Nonetheless, thanks to our market-leading new product launches such as Swisse Magnesium Glycinate and Little Swisse Kids Gummies – and our best-in-class marketing campaign ‘Here Life Comes’, Swisse strengthened its market leadership in terms of both volume and value.“
Launched about six months ago, Swisse Magnesium Glycinate is a tablet supplement that claims to support muscle relaxation and offers superior absorption. Magnesium Glycinate is also a current trending ingredient in Australia, according to the company.
On the other hand, the Little Swisse Kids Gummies range currently consists of six SKUs.
While some such as pre and probiotic gummies are relaunches, others such as vitamin C and zinc are new addition to the range.
The vitamin C and zinc gummies, in this case, are for supporting immune system and general health.
“What we’ve done here is to look at what young families are looking for to help with the development and health of their kids,” Swati Prasad, Sales Director, Swisse ANZ told NutraIngredients.
“And we’ve relaunched the kids gummies range in a number of different needs or demand spaces.”
Watch the following video as Swati tells us more about the magnesium glycinate and kids gummies launches.
Other products in the kids gummies range include iron and vitamin C for supporting energy production and healthy growth, Matricaria chamomilla or chamomile extract gummies for sleep, multi-greens vegetable blends for fussy eaters, and multivitamins for supporting healthy growth and general wellbeing.
“We’ve also been working on the taste profile of the gummies as well. Because these products are designed for kids, they are 99% sugar free or no added sugar, and when you do that, there is a need to strike a balance between getting the taste and the elements right,” she added.
Other markets
Swisse has also reported strong growth in its other Asian markets.
Strong sales growth was seen in Hong Kong, Thailand, Malaysia, India, and the Middle East, driven by expansion of product portfolio.
In Singapore, it is also said to be the leading brand in VHMS, liver health and men’s health.
H&H Group chairman Luo Fei said that the company would continue Swisse’s growth via different strategies, including further product innovation and retail distribution.
“In mainland China, we will maintain Swisse’s top position in the overall VHMS market through continued product innovation and online channel distribution,” he said.
“In ANZ, we expect to maintain steady growth in the domestic market. We also remain focused on developing our expansion markets, including Southeast Asia, India, the Middle East and Italy, by leveraging our success and proven strategies in the Singapore and Hong Kong SAR markets.”
