Hofseth BioCare finds “natural fit” in Asian distribution deal for fish-based supplements

09 Dec 2020 --- DKSH will distribute Hofseth BioCare (HBC)’s fish-based nutraceutical products across ten Asian markets. HBC anticipates that the proliferation of fish-heavy diets in parts of the continent will help increase consumer acceptance of its offerings.

The exclusive distribution contract covers Thailand, Indonesia, Philippines, Malaysia, Vietnam, China, Japan, Korea, Taiwan and India – which collectively have a population of 3.5 billion.

DKSH will also have the right to sell “white labeled” finished products across the territories on a non-exclusive basis as part of the deal.. Financial details of the agreement have not been disclosed.

“The new partnership with HBC is a great match,” says Thomas Sul, co-head business unit performance materials and member of DKSH’s Executive Committee.

“DKSH gets access to the innovative, sustainable and science-based product range of Hofseth BioCare and they in turn access to our established customer base, our network of innovation centers and our in-depth industry knowledge.”

The HBC products included in the agreement are:

• ProGo: Fast-absorbing salmon protein hydrolysate that can address anemia.
• CollaGo: Soluble Type I and Type III collagen peptide powder.
• CalGo: Calcium bone powder.
• OmeGo: Fresh unrefined salmon oil, which was investigated for potentially easing COVID-19 complications.

They are already available in Europe, North America, South America and Australasia via various global partners.

Sul tells NutritionInsight that the fish origins of the supplements will appeal to a market that already embraces seafood.

“Global consumers are more interested in the origin of ingredients. Other key trends are sustainable and natural ingredients. The HBC product range fits very well in this segment of high interest,” he explains. HBC can help millions of people who struggle with negative side effects or low efficacies of traditional iron supplementation, according to Currie.

A “vast” opportunity in Asia
According to Sul, there is a much higher consumption per capita of fish in the Asian region. This is sometimes three to five times higher than in Europe or the US.

However, American palates are more likely to want to mask the flavor of fish into other more sugar-based or non-marine tastes like chocolate and vanilla.

“As a result, we believe it will be even easier to attract new consumers to this product in the Asian region,” he says.

Crawford Currie, head of medical R&D at HBC, believes there is a “vast” opportunity for its products in Asia given that the regional palate is typically very predisposed to eating fish and fish-derived products.

“The Asian market is a natural fit for us given their natural enjoyment for fish,” adds HBC’s CEO, Roger Hofseth.There is a major opportunity for HBC’s products in Asia due to high local acceptance of fish products.

Winning consumers over
According to Innova Market Insights, Asia’s 59 percent share of sales value made it the leading region for fish and seafood products in the second half of 2019.

Notably, fish and seafood made up 40 percent of Asian launches in the meat, fish, eggs and alternatives category between H2 2018 and H2 2019. In comparison, fish accounted for just 20 and 26 percent of launches in this category in North America and Europe, respectively.

Despite Asia’s high fish consumption, Sul is adamant that this does not translate into a reduced need for fish-based supplementation.

“It simply means that these consumers believe in fish-based foods and will choose that over other products at all times. This is similar to how Italians consume more pasta than any other country.”

However, he stresses that Asia is not one homogenous market as different regions have major differences. “This applies to local taste profiles as well as different kinds of formulations preferred in a particular market.”

DKSH’s network of 48 formulation labs means it will be available to tailor formulations using HBC’s ingredients to local tastes and preferences.

By Katherine Durrell

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