Biome opens a major China channel with A$2 million probiotic target

A$2 million target puts China ahead of Biome’s existing international base

Biome Australia Limited (ASX:BIO) is aiming to make mainland China its biggest international market, signing an exclusive cross-border e-commerce distribution agreement with H&S Global for its Activated Probiotics range. The launch is planned for early 2027, with H&S Global committing to a Year 1 purchase target of A$2.0 million at Biome’s wholesale invoice value through 31 December 2027.

That target would be more than double Biome’s A$1.8 million of international sales in FY26, which represented 7.5% of group revenue. It is a purchase threshold rather than guaranteed revenue, however, and the agreement’s economics include substantial launch support from Biome.

Cross-border model avoids local registration and reformulation

The agreement covers mainland China through cross-border platforms including Tmall Global, Douyin, PDD and RedNote. Biome says this approach allows it to sell the same Australian-made products and packaging without local product registration, reformulation or capital expenditure associated with a conventional market entry.

The deal formalises the planned China e-commerce launch identified in Biome’s recent quarterly update, when the company reported record pharmacy sell-through and said the China program was moving towards execution. The company is now preparing commercial production with Specialty Probiotics Australia and has begun pre-launch activity in Shanghai, including a Tmall Global flagship store.

Biome will fund a quarter of Year 1 invoiced value

H&S Global will buy product from Biome for resale and operate the brand’s Chinese stores and channel presence. Biome will jointly plan brand and marketing activity, retain ownership of the brand and Chinese marketing materials, and fund brand investment under agreed campaign plans.

For Year 1, Biome will provide marketing funding equal to 12.5% of invoiced value and a further 12.5% operational support contribution, or 25% in total. The A$2.0 million purchase target is measured before that support is deducted, while the support terms are due to be renegotiated after the first year. The arrangement therefore offers a sizeable route into China, but the eventual contribution will depend on sales, support spending and the cost of building the local channel.

Exclusivity depends on performance after launch

Exclusivity is unconditional during Year 1. For Years 2 and 3, H&S Global must meet the prior year’s purchase target and agree a new target with Biome. If exclusivity ends, Biome can appoint other distributors, although H&S Global retains a right to match a competing offer and may continue as a non-exclusive distributor.

Biome is positioning the range around more than 30 randomised, double-blind, placebo-controlled trials on finished products and its domestic pharmacy performance. The company says Biome Daily was Australia’s number one pharmacy probiotic by value and units for the 52 weeks ended 3 October 2026, while Biome Daily Kids held the leading position in children’s and immune health probiotics. The open question is whether that evidence and domestic ranking translate into repeat purchases in a market where execution sits largely with the distribution partner.