Comvita, which uproduces health products from manuka honey and olive leaves, has bought an 85ha organic olive estate with potential to expand its production of olive leaf extracts by 130 percent over the next five years.
The price paid for Organic Olives (Aust) by Comvita's Australian subsidiary is undisclosed. The estate comprises some 7000 certified organic olive trees, with room for further plantings, and is in Coominya, on the shores of Lake Wivenhoe in south-eastern Queensland
The company recently reported clinical trials at Auckland University's Liggins Institute had found a beneficial impact from its olive leaf extracts on secretion of insulin and the action of insulin in overweight men.
The research has yet to be peer-reviewed and published, but is expected to boost global interest in the product.
"We're also scoping the possibility of building on this science, with additional clinical trials," Comvita chief executive Brett Hewlett says.
"The acquisition ... effectively future-proofs this rapidly growing part of our business. Together with fully developing our existing property, the development of our new purchase will provide the capacity to increase supply over the next five years by approximately 130 percent."
Comvita shares last traded on the NZX at $3.65, although none changed hands immediately after the announcement.
This article is tagged with the following keywords. Find out more about MyNBR Tags
- Dunne warns of 'consequences' if Maori Party supports RMA reform
- Serco's prison report challenge: Hide and Davis go head-to-head
- iPredict closing down due to money laundering risk
- Xero directors Drury, Winkler and Morgan cash in on 35% share price rally
- Tech expert's complaint about 'snake oil' ad upheld
Most listened to
- “A very ballsy thing to do” – Rodney Hide and Kelvin Davis discuss Serco’s response to Correction’s Mt Eden Prison report
- “The response from shareholders has been overwhelming” — A2 Corporation chief executive Geoff Babidge
- Greg Gent says a board of 13 people is "prehistoric"
- Arvida CEO Bill McDonald on his company's half-year net profit
- Lance Wiggs on the future of food exports
- Auckland Councillor Chris Darby on the Council's alternative funding report
- Nevil Gibson discusses his latest Editor's Insight on oil prices
- Campbell Gibson, Nick Grant and Chelsea Armitage chat about the inner workings of New Zealand media
- Paul Brislen discusses the 'snake oil' sales tactics of SalesConcepts
- Fonterra chief executive Theo Spierings reveals his ambitious China plan
- UDC Finance chief executive Wayne Percival talks about the company's profit
- Hamish McNicol discusses the latest court stories