Pharmacy Daily | TWC vitamin supplier lists

TERRY White Chemmart will receive more than $10 million in marketing contributions for the Living Healthy complementary medicine brand over the next four years.

The payment is part of an agreement detailed in the prospectus for the Initial Public Offering of Sydney-based nutritional products business Star Combo Pharma Limited, which will today formally float on the Australian Securities Exchange.

The Star Combo business started in 2004, and last year entered into a strategic agreement with the Terry White Group to manufacture and market products under the Living Health Brand, which Star Combo has also acquired from Terry White Chemmart for $500,000.

The company said Living Healthy would be exclusively available at more than 450 Terry White Chemmart stores in Australia, with expected demand of more than 20 million capsules annually.

Star Combo Pharma chairman Richard Allely said the successful capital raising meant the company could "fully fund its strategy outlined in the prospectus of providing comprehensive marketing and branding support to promote Living Healthy across the full Terry White Chemmart retail footprint".

As well as TWC the company has more than 100 long-term customers, with its products sold under brands including Costar, Amax and J&K through retail channels such as souvenir, convenience and grocery stores in Australia as well as online in China.

The agreement with Terry White Chemmart includes an undertaking to ensure that Living Healthy products are "prominently featured in each pharmacy," according to the ASX listing prospectus.

Terry White Chemmart pharmacies must dedicate at least a "top half bay of a standard pharmacy shelf" to Living Health branded vitamins under the deal.

Star Combo says it also intends to develop a specific Living Healthy 'Daigou' team to promote the products to purchasers in Australia who resell them in China.

The $10 million in marketing contributions for TWC will see Star Combo sponsor the group's annual conference and also fund attendance of Terry White Chemmart staff at the Natural Products Expo West conference.

Star Combo is one of only nine soft gel manufacturers in Australia with a Therapeutic Goods Administration license to produce vitamin and dietary supplements.