Key Highlights

  • Biome Australia (ASX:BIO) has executed a master distribution agreement with H&S Global for cross-border E-commerce sales of its Activated Probiotics range in mainland China.
  • The Year 1 purchase target is A$2.0 million to 31 December 2027, and meeting it is the threshold for H&S Global to keep exclusivity.
  • The target would more than double Biome’s FY26 international sales of A$1.8 million.
  • Biome will provide launch support of 12.5% Marketing funding and 12.5% operational support, a total of 25% of invoiced value in Year 1.

Biome Australia Limited (ASX:BIO), a microbiome health company, announced on 9 November 2026 that its Subsidiary has executed a master distribution agreement with HS Global E-Commerce (HK) Ltd. The agreement follows a heads of agreement announced in August 2026 and covers the cross-border sale of the Activated Probiotics range into mainland China, which the company describes as one of the world’s largest probiotics markets.

Agreement Structure and Exclusivity

The agreement covers cross-border e-commerce only, including platforms such as Tmall Global, Douyin, PDD and RedNote. The term runs from signing, and no earlier than 1 November 2026, to 31 December 2029. Year 1 is unconditional exclusivity, which runs to 31 December 2027.

In Years 2 and 3, exclusivity continues only if H&S Global meets the prior year’s purchase target and the parties agree the next. H&S Global has a right to match any competing offer. If exclusivity ends, H&S Global continues as a non-exclusive distributor, and Biome may appoint other distributors.

Launch Costs and Commercial Dependence

Biome will fund Brand and marketing campaigns, support the development of H&S Global’s local team, and attend major trade and consumer events in China. The Year 1 purchase target is measured before those support payments are deducted, which means the company’s net Revenue from the market will be lower than the headline purchase figure.

H&S Global will purchase product for resale and operate the brand’s stores and channel presence on Biome’s behalf. Brand stores and accounts are held for Biome and will transfer to it on termination, and Biome holds the trade mark and Chinese-language marketing materials. The company has filed its first trade mark application in China.

Market Opportunity and Execution Risks

The company cites research estimating China’s probiotics market at about US$10.8 billion in 2025, forecast to reach US$29.3 billion by 2033. Cross-border e-commerce allows Biome to enter without local product registration, reformulation or capital expenditure, because it sells the same products that serve Australian pharmacies.

The launch is planned for early 2027 and has not yet occurred. The purchase target is substantial relative to FY26 international sales, and it could be missed. The company points to its clinical evidence base as central to launch discussions, but the release does not show how Chinese consumers will respond to pricing or competition between channels.

Final Word

The agreement gives Biome a route into a large and fast-moving market with lower entry costs than a local launch. However, it relies on one distributor for exclusive cross-border sales in Year 1, and the company will bear significant launch support during the first year. Early 2027 will be the first test of whether sales reach the target and whether exclusivity can be retained.