Distribution of Nutri Pharma products in Russia/CIS
01.08.2009 - Nutri Pharma is pleased to announce that the European Distribution, Product Supply and Marketing Support Agreement with Nikken UK Ltd, signed on the 5th December 2008 has now been extended...
Following the successful launch of Nutri5® into 17 other countries in Europe in May, Nutri Pharma now sees a greater potential for growth and profitability in Russia/CIS with Nikken than with the current distribution through the wholly-owned subsidiary Meridian International Group (MIG).
As a consequence of the new agreement, Nutri Pharma also announces the sale of the remaining MIG business to an American multi-level marketing company. MIG will retain rights to distribute any remaining stocks of Nutri Pharma products, after which the licence agreement with Nutri Pharma will end. With effect from the signing of this agreement, Daniel Laroque, President of MIG, has resigned from the board of Nutri Pharma.
The sale of MIG will affect the P&L of Nutri Pharma. The originally investment in MIG of MNOK 23.2 will be written off, as will accounts receivable against MIG at a total of MNOK 18.8. These one-off write offs will have a negative effect on the results for the third quarter. The sale is not expected to have any adverse cash effect on Nutri Pharma. The full implications of this sale will be reported in the Q3 figures.
With the signing of these agreements Nutri Pharma has progressed its strategic objective of becoming a supplier of advanced nutritional products with scientifically documented health benefits to world-leading distributors. The financial and management resources that will be freed up following this strategic development, will enable further focus on this basic strategy.
Anthony Chaplin, CEO Nikken Europe, says: ”Nikken is delighted to be able to expand the scope of our agreement with Nutri Pharma into the Russian market, which is the largest in our European business and contributes over 30% of the sales revenue for the region. Following the successful launch of Nutri5 only a couple of months ago, we expect this to become our single best-selling product accross Europe before the end of the year.”
Trond Syvertsen, CEO Nutri Pharma ASA, says: ”We are very pleased that the new agreement means that Nikken will not only sell Nutri5® in Russia/CIS, but also Nutrilett®/NutriPro®. Nutrilett® has been the market leader in the Nordic region for the past 20 years with a market share of 60% and annual retail sales of some 220 million NOK, a figure which has been increasing year on year by between 5 and 15%.”
For more information :
Trond Syvertsen, CEO +47 23 01 09 60 / + 47 91 72 14 57
Lars Helmer Enger, CFO +47 23 01 09 60 / + 47 90 84 37 71
For information about Nutri Pharma, see; http://www.nutripharma.com
For further information about Nikken, see; http://www.nikkenwellbeing.co.uk/