Media release
31 January 2008

Healthy living the Mediterranean way

New Zealanders will be able to enjoy the benefits of one of Australia’s fastest growing health supplements following today’s launch of Comvita’s latest product – Comvita High-Strength Olive Leaf Complex.

Comvita’s Olive Leaf Complex is an all-natural daily health tonic which blends the benefits of the world’s oldest cultivated tree with modern extraction processes that use only fresh, natural olive leaves.

The launch extends Comvita’s natural health care portfolio, complementing the Manuka honey and other bee-derived products Comvita is renowned for.

At the launch on Waiheke Island Julian Archer, co-founder of Olive Products Australia, Comvita’s recent acquisition, said that while many New Zealanders are aware of the traditional health benefits associated with the Mediterranean diet, it is fresh olive leaf complex that packs the strongest punch.

“Research shows Comvita’s fresh Olive Leaf Complex contains more than 30 times the health-giving antioxidants than extra virgin olive oils and it is 400 per cent more powerful than vitamin C.”

Antioxidants are substances that protect cells against the damage caused by free radicals – molecules that are produced when the body is exposed to poor diet, pollution, tobacco smoke or excessive sunlight.  Protection from free radical damage is important for healthy heart and circulation, maintaining healthy blood pressure and respiratory health, plus premature ageing and skin health.

For many years scientists have studied the antioxidant properties found in olive leaves to discover why the Mediterranean diet appears to support heart health and the body’s natural defences. Recent scientific studies prove antioxidant compounds are more potent when derived from fresh olive leaves than reconstituted products.

“Over the past two years an Australia-wide public trial of fresh olive leaf extract with more than 2000 health professionals showed nearly 90 per cent of those surveyed experienced health benefits including improved energy, support for the immune responses to winter ills and chills and clear airways in the head and sinuses,” says Julian.

“Other findings showed support for joint mobility, improved skin health and enhanced general wellbeing.”

In addition, a recent 90 patient U.S. clinical study also showed positive support for joint mobility.1

Dave Bathgate, general manager Healthcare at Comvita, says that since its launch in Australian stores four years ago, OPA’s Olive Leaf Extract has become one of that country’s fastest growing health supplements.

“Australian retail sales of Olive Leaf Extract passed AU$15m in 2007 and users are reporting a range of health benefits that we’re hoping New Zealanders will experience as well.”

Comvita’s Olive Leaf Complex is grown on a plantation of more than half a million scientifically-selected olive trees near Brisbane and is the world’s largest Olea europaea grove dedicated solely to the health-giving leaves. Comvita purchased Olive Products Australia for AU$26m in late 2007.

Comvita’s High Strength Olive Leaf Complex is the only fresh olive extract in New Zealand and will be available at selected pharmacies and health food stores from February 2008 and comes in two flavours – natural or peppermint. RRP 100ml $14.90 and 500ml $39.90. The product will be available in Australia, UK and Hong Kong following the New Zealand launch. Always read the label and use as directed.

References
1.    Bitler CM et al. "Olive extract supplement decreases pain and improves daily activities in adults with osteoarnthritis and decreases plasma homocysteine in those with rheumatoid arthritis.” Nutrition Research August 2007.

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TAPs approval #PP4941

30 March 2007

NZX listed natural healthcare product company Comvita Limited has acquired its Hong Kong distribution partner, GreenLife Limited.

The move, which is subject to final due diligence and shareholder approval,
is expected to have a positive impact on the company’s gross margins and Comvita’s 2007 earnings per share. 

The acquisition of GreenLife, which will take effect from 1 May 2007, is for NZ$9.03 million involving a mixture cash and the balance in Comvita shares.  28% of the total purchase price will be held in trust for three years pending meeting agreed earn-out targets. Further, the acquisition will see GreenLife’s founders, the Butt family and related parties, represent a 9.5% shareholding in Comvita.  Mr Ron Butt, formerly General Manager of Green Life, will become Comvita’s General Manager for the Asia region.

Comvita’s Chairman Neil Craig said the acquisition would enhance Comvita’s growth into neighbouring China, and other Asian markets.

“We have pursued a strategy of capturing more value by securing a greater share of the retail dollar. This involves us getting closer to our end consumers. GreenLife's proven track record and its distribution capability, retail stores, network of sales staff and in-store promoters give us the ability to do just that and launch new products into the Asian market quickly and efficiently,”  said Neil Craig.
Comvita’s CEO Brett Hewlett is positive about the company’s potential reach from its new hub location. “"We've been working on this acquisition for some time. We see it as a key step in our development in the Asian region. Hong Kong is a vibrant economy with a population approaching 7 million. It’s the gateway to the Greater China Region and within 4 hours flight from China's four major cities and 5 hours' flight from half of the world's population.”
GreenLife was established in 1992 by Mr KC Butt. Passionate about natural health, Mr Butt was a pioneer in the organic food industry in Hong Kong and is a noted philanthropist. He and his family lived in New Zealand and set up the company in Hong Kong solely for the distribution of Comvita products and a selection of other high quality natural and organic products.  Today 90% of GreenLife’s product portfolio comes from Comvita, and the company has an annual turnover of NZ$7.6 million. GreenLife experienced 28% growth in 2006.
 
Mr KC Butt’s son Ron attended university in New Zealand, went on to have a 10-year career with ExxonMobil around the Asia Pacific region, and has over the past two years, championed Comvita’s premium Nature of New Zealand brand positioning in the Hong Kong market. Under his management, GreenLife successfully developed a Comvita store-in-store concept that has underpinned recent growth in retail sales.
Brett Hewlett is delighted that as well as adding significantly to Comvita's capabilities in the Asian region, the two companies are aligned in their core values of health and wellbeing, and both pursue sustainable business practices and social responsibility.
The acquisition is in line with Comvita’s strategy of developing regional hubs to provide marketing and distribution capabilities in-market and to enable expansion into neighbouring regions. In a similar move in late 2005 Comvita acquired UK company New Zealand Natural Food Co, which has resulted in a strong lift in sales and given Comvita a platform to launch into the European Union later this year.

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