New Day New title, page-7

New fact of the day:

Natural Health and Supplementary Products Bill is going to pass NZ Parliament in few months time.

While it may contribute to further volatility to Vitaco SP or even price drop, I regard it as a good long term support. (Yes, it incurs more legal costs or affect profit margins, furthermore discourages launches of new products)

Top down, Asians only buy Australian/NZ supplements due to the fact of strict regulations and guarantees of quality, thus they won't mind to pay a premium for that.

Bottom Up, Vitaco being the biggest player in NZ Natural Health Product market, has every power to lobby the pollies to benefit itself from the new law.

With new regulations in place, while impacting whole industry, it will obviously favour big players over small players, hence providing opportunities for consolidation & acquisition.

Current NZ natural medicine landscape overview:
no.1 player Vitaco weighs 18% over total market.
no.2 player Integria (brand-owners of Thompson, Eagle, Mediherb etc) weighs 5%.
no.3 player Red Seal weighing 4 % was acquired by EBOS group on 16/11/2015 recently, marking the start of consolidation within the industry.

83% of Australian natural medicine business surveyed in 2014 recognize "regulatory burden from TGA" as no.1 issue affecting business performance.

While unsure if current volatility is reflected by the possible impacts of new regulations, it presents good opportunity to top up as I see more upsides than downsides with the risks of this new law being implemented in NZ. (of coz, please DYOR)