A Victorian baby food manufacturer is expanding to Malaysia, with its products to be stocked in 350 Malaysian supermarkets.
Baby Royale, based in the regional Victoria, manufactures premium Halal, organic baby food and it has been working with expansion service DKSH for a year on expanding its business in Asia.
The announcement of the deal was part of the Victorian government Super Trade Mission to south-east Asia and there are hopes it will spark more small food manufacturers to consider expanding to Asia.
Baby Royale managing director Adam Moore told SmartCompany the Malaysian market will help it develop its wider Asian region plan and it will be stocked in supermarkets including Tesco, Giant, Cold Storage and Aeon.
“Baby Royale is focused on developing export markets and has worked in the Malaysian market for the past three years to secure the deal.
“The Victorian Government Commissioner and Business Office in Kuala Lumpur have been a great support for small exporters, and have helped us to develop relationships in the region,” he says.
Moore says Baby Royale made eight visits to Malaysia, prior to its current expansion.
“Baby Royale has used trade shows and Victorian government-sponsored events in both Malaysia and Melbourne to build up relationships with retailers and distributors in Malaysia to establish the relationships that have led to this deal,” he says.
The baby food manufacturer believes it will boost its exports to the ASEAN region by $2 million over the next 12 months and it will rise to $20 million per annum in the next five years.
Moore says the deal is a major boost for the small regional food exporter.
“As well as creating new employment in the company, this will also have flow on effects for farmers and growers across Victoria,” he says.
The business started in 2008 and now also exports to Europe and the Middle East.
Over the next five years, Moore says he intends to expand into Singapore, Indonesia and other ASEAN countries.
When delivering his State of the State address on Friday last week, Victorian Premier Denis Napthine said south-east Asia offered a number of opportunities for Australian small businesses.
“It’s absolutely certain over the next century that Asia will drive the economy and the world.
“The big leaders from this change will be the states and countries that are flexible and adaptable, outward-looking, Asia-literate, and that welcome investment, that have strong knowledge industries like education, medical research and professional services, and those areas that are able to grow the food, the fibre, and the high-value manufacturing that is demanded by these very fast-growing nations,” he said.
As part of the Super Trade Mission to Asia, a number of Victorian producers showcased their products at an event in Kuala Lumpur yesterday.