Key facts
- Kirin Holdings is benefiting from its acquisition of Australian supplement maker Blackmores.
- The acquisition is supporting Kirin's expansion of health products into Asian markets.
- Blackmores has a strong presence in the Asia-Pacific vitamin and dietary supplement category.
- China is a key growth market for premium Australian health products.
- Kirin Holdings aims for Blackmores to achieve $5.1 billion in health science revenue and a 15% operating profit margin.
Kirin Holdings is beginning to see the strategic benefits of its acquisition of Australian supplement maker Blackmores, which was completed in August 2023 for $1.9 billion. The Japanese beverage giant views Blackmores as a crucial component in its long-term ambition to expand its health and sciences division, a priority since the 1980s when its domestic beer market matured.
Blackmores, a leading Australian natural health company with a 90-year history, operates across multiple international markets, with a significant focus on the Asia-Pacific region, particularly in the vitamin and dietary supplement (VDS) category. Its established brand equity and distribution network are key assets. Following the acquisition, Blackmores has focused on integrating its operations and leveraging Kirin's research and development capabilities, especially in fermentation and biotechnology, to develop new products.
The company has intensified its focus on the China market, utilizing both cross-border e-commerce and general trade channels, recognizing it as a high-growth market for premium Australian health products. Recent product launches have included specialized immunity formulations and beauty-from-within supplements tailored for Chinese consumers. Kirin's acquisition has significantly strengthened Blackmores' distribution capabilities across the Asia-Pacific region, aiding its navigation of complex regulatory landscapes.
Kirin Holdings aims for Blackmores to achieve its long-term revenue targets of $5.1 billion and a normalized operating profit margin of 15% in the health science field. For 2024, the ambition is to generate revenue of about $694 million and a normalized operating profit of around $60 million, with mid- to high-single-digit growth expected overall. Double-digit growth is predicted in some Southeast Asian and Chinese markets.