Biome secures exclusive China distribution deal for Activated Probiotics
Biome Australia (ASX: BIO), through wholly owned subsidiary Biome Australia Trading Pty Ltd, has signed a binding heads of agreement with H&S Global for the exclusive cross-border e-commerce (CBEC) distribution of its Activated Probiotics range in China. The deal marks a significant step in the company’s Activated Probiotics China launch.
The agreement runs under a three-year initial term, with launch planned within FY27. It forms part of Biome’s Vision 27 strategy and opens access to what the company describes as the largest single-country probiotics market in the world.
For investors, the significance is straightforward. Biome is stepping into a market forecast to nearly triple in value over the next decade, establishing a new growth runway without the heavy capital burden that often accompanies market entry.
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Why China, and why now
China represents the world’s largest single-country probiotics market, and the timing of Biome’s entry has been deliberately sequenced. According to Grand View Research, the category was worth approximately US$10.8B in 2025.
Key market figures cited by Biome include:
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China probiotics market valued at approximately US$10.8B in 2025, forecast to reach US$29.3B by 2033
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A compound annual growth rate of 13.1%
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Probiotics are the largest product type within China’s digestive health supplements category
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E-commerce accounts for an estimated 60 to 70% of dietary supplement retail sales
Biome has adopted what management characterises as a patient approach, waiting several years for the right partner and the right timing. That sequencing, aligned to the company’s onshore manufacturing transition and the maturity of the Chinese market, is intended to de-risk the entry.
Blair Vega Norfolk, Founder and Managing Director, Biome Australia
“We have been looking at China for several years and have deliberately waited. Entering too early with the wrong partner is how brands get damaged in this market. We reviewed proposals from several of the leading distributors in this channel and H&S were in a class of their own. What mattered most was that they share our time horizon, vision and values.”
How cross-border e-commerce unlocks entry
Cross-border e-commerce is the mechanism enabling Biome’s entry, and understanding it clarifies why the deal carries such a low-friction profile for a supplements company. CBEC allows overseas brands to sell into China without the traditional regulatory hurdles.
The key features of this channel are as follows:
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Products sold via CBEC “do not require Blue Hat registration,” provided they appear on China’s cross-border positive list and are legally marketed in their country of origin.
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This enables entry without local product registration, without reformulation and without capital expenditure.
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Biome will sell the same products, in the same packs, that already serve Australian pharmacy.
The investor takeaway is clear. This low-cost, low-friction route avoids the reformulation and registration costs that typically slow international expansion.
Australian provenance and manufacturing underpin the launch
Australian provenance and Australian manufacture are described by Biome as the defining trust signals in the CBEC channel, and the company has aligned its production strategy accordingly. On 3 June 2026, Biome announced a binding agreement with Specialty Probiotics Australia, a GMP licensed Australian manufacturer, to progressively transition production onshore.
The supporting credentials behind the launch include:
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First commercial batch targeted for September 2026
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More than 30 randomised, double blind, placebo controlled clinical trials across the Activated Probiotics range
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Distribution through more than 7,500 Australian pharmacies and practitioners
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Biome Daily Probiotic is the number one probiotic product in Australian pharmacy
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Biome Daily Kids is the number one children’s and immune health probiotic in pharmacy
Biome sequenced the China entry to follow the onshore manufacturing transition, ensuring Australian manufacture is in place at launch. This clinical rigour and Australian-made status match precisely what management believes sophisticated Chinese consumers are demanding of complementary medicines in 2026.
Inside the H&S Global partnership
Biome ran a structured assessment of cross-border e-commerce operators before selecting H&S Global, reviewing proposals from several established distributors in the channel. Management met H&S Global’s ownership and leadership team and visited their facilities in both Sydney and Chengdu over recent months.
During that process, Biome’s management also met the leadership teams of the major cross-border platforms in China, including Douyin (TikTok), Tmall, WeChat and JD Health. The company assessed H&S Global as the strongest fit of the operators reviewed and among the largest in the channel.
Under the arrangement, H&S Global will purchase product from Biome for resale in the territory, and will establish and operate Biome’s brand stores and channel presence on Biome’s behalf. Crucially, Biome maintains control and ownership of the brand marketing, leading brand and marketing while H&S operates as the sales and operational partner on the ground.
| Term | Detail |
|---|---|
| Parties | Biome Australia Trading Pty Ltd (wholly owned subsidiary) and H&S Global |
| Territory & channel | People’s Republic of China (mainland), CBEC only |
| Term | Three years from signing |
| Exclusivity | Exclusive for the first year; years two and three subject to purchase targets agreed between the parties |
| Marketing | Biome leads brand strategy, marketing investment and brand development |
| Brand & IP | Biome retains all rights in the Activated Probiotics and Activated Therapeutics brands and its proprietary strains |
| Payment terms | 30 days from date of invoice |
| Governing law | Victoria, Australia |
Leo Zhang, Chief Executive Officer, H&S Global
“At H&S we are presented with a great many brands from around the world looking to grow in China. Very few have built a platform and brand position like Biome’s Activated Probiotics. With the backing of gold standard clinical trials to support efficacy across the entire Activated Probiotics range, we believe this is a key attribute Chinese consumers are demanding of their complementary medicines in 2026.”
What’s binding, and what comes next
The heads of agreement carries binding provisions, though several elements remain conditional on further negotiation. Investors should distinguish carefully between what is locked in now and what awaits confirmation.
The binding elements comprise:
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First-year exclusivity for H&S Global in the agreed territory and channel
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The right for H&S Global to operate Biome’s brand presence on the key cross-border e-commerce, social media and communication platforms in China on Biome’s behalf
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Intellectual property, confidentiality and governing law provisions
Completion of the arrangement remains subject to execution of a master distribution agreement, which the parties will negotiate in good faith with the intention to launch within FY27. Volumes, targets and the launch date will be confirmed on execution of that master agreement later this year.
The heads of agreement runs for its three-year term and does not contain express termination rights; those provisions will be addressed in the fuller master agreement.
With the framework now established, the next catalyst for investors to watch is execution of the master distribution agreement, expected later this year, ahead of a planned launch within FY27.
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