Biome China distribution agreement signed with H&S Global for Activated Probiotics
Biome Australia Limited (ASX: BIO), through its wholly owned subsidiary Biome Australia Trading Pty Ltd, has executed a master distribution agreement with HS Global E-Commerce (HK) Ltd (H&S Global), following the heads of agreement announced on 27 August 2026. The Biome China distribution agreement covers exclusive cross-border e-commerce (CBEC) distribution of the Activated Probiotics range in mainland China.
Launch is planned for early 2027. The agreement carries a Year 1 purchase target of A$2.0 million to 31 December 2027, which would more than double Biome’s FY26 international sales of A$1.8 million (7.5% of group revenue) if achieved.
The agreement has no conditions.
Key points from the announcement:
- Exclusive CBEC distribution of Activated Probiotics in mainland China
- Year 1 purchase target of A$2.0 million is the threshold for H&S Global to retain exclusivity in Year 2
- More than 30 clinical trials on the finished products support the launch
- Term runs to 31 December 2029, with Year 1 running to 31 December 2027
Blair Vega Norfolk, Founder and Managing Director
“China opens Biome’s largest growth opportunity to date…”
“…Year 1 is the foundation. We expect China to become our largest international market, and our ambition is for it to become one of our largest markets overall.”
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Why China and why cross-border e-commerce
China’s probiotics market is sized at the following levels, according to Grand View Research:
- 2025: approximately US$10.8 billion
- 2033 (forecast): US$29.3 billion
Cross-border e-commerce is a way of selling directly into China from overseas. It generally allows Biome to enter without local product registration, reformulation or capital expenditure, selling the same products, in the same packs, that serve Australian pharmacy.
For investors, that points to a capital-light entry route into a large market. Biome says it is taking a long-term approach, built on the clinical evidence behind the range.
The heads of agreement set the commercial framework before the binding terms were negotiated, and the earlier coverage sets out how the cross-border structure was first presented to investors and why it avoids local registration.
The credibility points Biome cites for the launch:
- More than 30 randomised, double-blind, placebo-controlled clinical trials on the finished products
- Practitioner recommended through more than 7,500 Australian pharmacies and practitioners
- Biome Daily Probiotic is the number one probiotic product in Australian pharmacy, with IQVIA data to 3 October 2026 showing it extending that lead
- Biome Daily Kids is the number one children’s and immune health probiotic
- Australian made, with commercial production now underway at Specialty Probiotics Australia
Biome already operates international businesses across New Zealand, Canada, the UK, Ireland and Europe. China adds a major new growth market alongside them.
For readers wanting to see how Biome has approached another international market, our full explainer on Biome’s Canadian Fullscript partnership covers the practitioner channel structure and the Health Canada compliance position behind that launch.
Key terms of the agreement
H&S Global brings a demonstrated record of building and scaling international health brands in Chinese cross-border e-commerce. It purchases product from Biome for resale and operates the brand’s stores and channel presence on Biome’s behalf, while Biome and H&S Global jointly plan brand and marketing, with Biome funding brand investment.
| Term | Detail |
|---|---|
| Territory and channel | People’s Republic of China (mainland), cross-border e-commerce only, including Tmall Global, Douyin, PDD and RedNote, and other agreed cross-border platforms |
| Term | From signing (and no earlier than 1 November 2026) to 31 December 2029 |
| Year 1 purchase target | A$2.0 million at Biome’s wholesale invoice value, measured before launch support is deducted |
| Launch support (Year 1) | Marketing funding of 12.5% and an operational support contribution of 12.5% of invoiced value (25% in total), to be renegotiated at the end of Year 1 |
| Supply | Delivered to H&S Global’s Sydney warehouse, with payment 30 days from invoice |
| Governing law | Victoria, Australia |
Exclusivity and performance
Exclusivity is unconditional in Year 1. In Years 2 and 3, exclusivity continues subject to H&S Global achieving the prior year’s purchase target and the parties agreeing the next, with a right for H&S Global to match any competing offer.
If exclusivity ends, H&S Global continues as a non-exclusive distributor. Targets for Years 2 and 3 will be agreed on Year 1 performance, and H&S Global must use best endeavours to promote and sell the range.
Brand and IP protection
Biome retains all rights in the Activated Probiotics brand. Brand stores and accounts in China are held on Biome’s behalf and transfer to Biome on termination, or on request if exclusivity ends.
Chinese-language marketing materials created for the range are owned by Biome. Biome has filed its first trade mark application in China, with further applications, including a Chinese-character mark, to follow.
Termination provisions allow Biome to end the agreement on 90 days’ notice after Year 2 if exclusivity does not continue into Year 3. Either party may also terminate for a breach that cannot be remedied or is not remedied within 30 days of notice, for insolvency, or if a force majeure event continues for more than 60 days.
Launch activity and what happens next
Activated Probiotics was first presented to the Chinese market in June at Health Plex in Shanghai, in the Australia pavilion with Austrade. Biome is currently exhibiting at the China International Import Expo (CIIE) in Shanghai, with a booth within the Victorian Government and Australia pavilion.
At CIIE, Tmall Global invited Biome on stage to present the brand and hosted a three-way signing ceremony with H&S Global. This was alongside a pre-launch of the brand’s Tmall Global flagship store and other marketing activity.
Biome and H&S Global are working with the other major cross-border platforms on launch support, with Biome’s clinical evidence base central to those discussions.
The milestones stated in the announcement:
- Brand launch in China: planned for early 2027, by Biome and H&S Global.
- Year 1 purchase target of A$2.0 million: measured to 31 December 2027, and the threshold for H&S Global to retain exclusivity in Year 2.
- Launch support (25% in total): to be renegotiated at the end of Year 1.
- Year 2 and Year 3 targets: to be agreed on Year 1 performance.
- Agreement term ends: 31 December 2029.
Management frames Year 1 as the foundation of a long-term approach built on clinical evidence and repeat purchase.
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