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New Acquisition Grows Non-Bee Health Product Range for Comvita
August 4, 2006
Comvita has purchased New Zealand based natural health products company NZ Vitalife in a deal aligned with Comvita’s strategy to expand the proportion of non-bee natural health products in its overall product range.

In acquiring NZ Vitalife, Comvita is adding new intellectual property and a focused range of New Zealand sourced herbal products with markets established in New Zealand and the UK. The $250,000 purchase involves a mix of cash and Comvita shares.

Comvita’s Chief Executive Brett Hewlett says NZ Vitalife’s trademarked brand names and product range will be marketed under the Comvita umbrella brand and sold into Comvita’s international marketing channels, adding significant value to the acquisition.

“As well as export potential, the business will contribute significantly to Comvita’s New Zealand retail health market sales, with minor incremental cost.”

The deal will also add supply chain capability. Comvita will now directly source bulk echinacea for its range of Winter Wellness elixirs, resulting in lower costs and increased control over quality.

NZ Vitalife founder, Dr Caroline Davy, will join Comvita in a global training and technical support role. Dr Davy, a former practising GP, brings an important medical dimension to Comvita’s global marketing team.

“Whilst not of significant size within Comvita’s overall business, the fit with NZ Vitalife is excellent from a business and marketing perspective. The products meet our stringent quality standards and fit perfectly into our health solution categories,” says Hewlett.

Comvita will introduce an initial range of herbal products into the New Zealand market by the fourth quarter of 2006, and then begin the global rollout early in 2007.
NZ Vitalife won the 2002 award for New Organic Exporter of the Year. The company was founded in 1998 by Dr Caroline Davy and Andrew Fowler.
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Comvita Increases Stake in Derma Sciences Inc
2 August, 2006

Comvita Increases Stake in US-based Derma Sciences Inc
Comvita has reached agreement on amendments to its equity arrangements with US IP Licensing Partner, Derma Sciences Ltd.  

These changes will result in Comvita’s stake in Derma Sciences increasing to just over 10% by February 2007.  They involve commuting the following two tranches of options Comvita held in Derma Sciences, into shares at US$0.75 in February 2007.   

•    US$500,000    of options at US$0.75 due February 2007
•    US$500,000    of options at US$3.00 due 2009  

The structure of the original options was found to be problematic for Derma Sciences within the context of new US audit protocol.  While the changes are being brought about by structural requirements, Comvita is very comfortable that the original reasons for the initial transaction remain attractive and the conversion terms are fair for both companies.

For further background information, refer to releases to NZX dated 15 February 2006 and 19 April 2006. Also refer Comvita Ltd 2005 Annual Report, page 16.

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Comvita wins Supreme Sustainable Business Award

News Release
June 8, 2006

Paengaroa-based natural health products company Comvita is elated at winning the Environment Bay of Plenty Sustainable Business Supreme Award last week.

Chief executive Brett Hewlett says it was a pleasant surprise when the company was announced as the supreme winner against stiff competition from 61 of the region’s most prominent businesses.

Sustainable Business Network Bay of Plenty regional manager Calum Revfem says Comvita is an excellent example of a business that enters the awards to benchmark its efforts against peers to get feedback and make progress.

“Comvita really stood out for the systematic way that it addresses sustainability issues.  It’s obvious that sustainability is a core element of Comvita’s business. It’s completely ingrained in their systems and culture.”

Hewlett says Comvita is totally committed to improving sustainable business practices and continuing to be a leader in the field.

“Sustainability is at the core of what we do but we are always looking for ways to further integrate environmental, social and economic best practice into our business.  The principles behind what is now called the triple bottom line report were championed by our founders, Claude Stratford and Alan Bougen, long before the phrase itself was invented.”

Comvita’s international brand is built heavily on New Zealand’s image as an unspoilt source of natural health products, and the company understands the need to make sustainability issues integral to its business practice.

Hewlett says consumers across the world increasingly judge companies on their social and environmental commitment, and buy products accordingly.

“Investors are following similar principles.  We want to spread the word that good practices in economic, social and environmental sustainability can make a significant positive contribution to commercial, bottom-line results and Comvita’s growth is evidence of this.”

The company is involved with a number of environmental and social initiatives, both in New Zealand and globally.  Hewlett says the influence and conviction of founders Claude Stratford and Alan Bougen remain pivotal in Comvita’s business, in particular their philosophy that business must put something back into the community.

Last year in Tauranga, Comvita donated $15,000 worth of native trees to the Birds, Bees, Kids and Trees programme and a similar initiative is planned for 2006/07.  Sport and school primary school sponsorships, beekeeper scholarships, Otanewainuku Kiwi Trust, Project Green Fleet, The Life Foundation (India), Ben San Leprosy Centre (Vietnam), and Green Globe 21 are some other examples of social and environmental initiatives Comvita supports.
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