they are continuing to expand into new markets. Indonesia last...

they are continuing to expand into new markets. Indonesia last month, and this today;

http://www.theaustralian.com.au/nat...l/news-story/27807dc0f3ea0a2b841519dd5b8ceb1b

Blackmores signs up for a healthy Iranian deal

Iran is considered the ‘largest untapped market globally’ with growth ‘well into double digits’, says Blackmore’s CEO Christine Holgate. Picture: David Geraghty

The Australian12:00AM September 28, 2016

JOE KELLY
Political reporterCanberra
@joekellyoz

Australian natural health company Blackmores has become one of the first businesses to secure a deal to gain access to a new Iranian market of 80 million people after the lifting of sanctions on the Islamic republic.

The company will today take its chance to gain access to the potentially lucrative Middle East market by partnering local firm Tasnim Pharma as part of a high-profile delegation to Tehran led by Trade Minister Steven Ciobo aimed at re-establishing commercial ties in several sectors.

The delegation also includes Qantas, Cochlear, GrainCorp, LiveCorp, WorleyParsons and the universities of Melbourne and Sydney.

Mr Ciobo yesterday met his Iranian counterpart, Mohammad Reza Nematzadeh, and they witnessed the signing of a memorandum of understanding to help improve transparency for Australian businesses looking for opportunities in the Iranian market.

The MOU between Australia’s Export Finance and Insurance Corporation and the Export Guarantee Fund of Iran is aimed at helping businesses navigate challenges in Iran arising from sanctions that still apply to its finance sector.

“There remain challenges around banking facilitation in dealing with Iran … I would just stress this is not a line of credit between the two agencies, so it won’t in that respect mean that commercial export finance is easier to obtain,” Mr Ciobosaid.

“It works so that you’ve got a situation where businesses can share information about, for example, an upcoming deal, so if you have an Australian exporter looking at exporting to Iran then they would be in a situation where they are able to receive assistance in verifying, as part of a due diligence process, what circumstances are on the other side.”

Mr Ciobo said the MOU, coupled with today’s reopening of the Austrade office in Tehran, represented a “substantial step forward for exporters”.

Tasnim Pharma will sell 10 Blackmores products over the coming year before ramping up to 25 products, with the Iranian company setting up a new division to manage the brand and distribution.

By signing the partnership agreement today, Blackmores will enter the previously unavailable market for vitamins and dietary supplements in Iran that is estimated by industry to be worth at least $585 million a year.

The move will see the Australian company further expanding on its recent growth in Asia, with Blackmores chief executive Christine Holgate saying Iran was considered the “largest untapped market globally” with growth “well into double digits”.

“Working with Austrade and having a strong local partner in Tasnim Pharma is a low-risk entry into a market considered very complex,” Ms Holgate said.

Blackmores managing director in Asia Peter Osborne said the company would bring the benefits of its research and education arm to Iran through the Blackmores Institute, which is aimed at improving the use of natural medicine.

Mr Ciobo said the deal was “a wonderful example of Australia exporting to the world”.