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 Bon Natural Life Limited Announces Brand Strategic Cooperation with Guangdong JUWO

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Bon Natural Life (Nasdaq: BON) has announced a strategic cooperation with Guangdong JUWO Trading Co., The agreement involves the construction and development of marketing and supply chain systems for liquor distribution, sales, functional liquor, and hangover relief products in mainland China. As part of this deal, JUWO will use BON's 'App-Chem' brand in their products, launching new co-branded alcoholic health products. JUWO will handle promotion and marketing, leveraging its extensive experience in the Chinese liquor market. This partnership aims to blend traditional Chinese culture with modern biotechnology to create high-quality health products. The cooperation is expected to enhance BON's competitiveness and profitability.

Positive
  • Strategic cooperation with Guangdong JUWO establishes BON's presence in the Chinese liquor market.
  • Co-branded products combine traditional Chinese culture with modern biotechnology.
  • JUWO's extensive distribution channels can significantly boost BON's market reach.
  • Potential for significant market expansion and revenue growth.
  • Enhanced brand influence and competitive position in the bio-tech industry.
Negative
  • The partnership grants non-exclusive authority to JUWO, potentially limiting BON's control over brand usage.
  • Reliance on JUWO for promotion and marketing may introduce risks if JUWO's strategies do not align with BON's objectives.
  • No immediate financial figures or projections provided, making it difficult to assess short-term impacts.

The strategic cooperation between Bon Natural Life Limited (BON) and Guangdong JUWO Trading Co., Ltd. to launch co-branded liquor products signals a significant move for both companies. This partnership leverages BON’s technological prowess in bio-ingredients and JUWO's established distribution network in the Moutai-flavor liquor market.

From an investor perspective, this agreement could open up new revenue streams by blending traditional Chinese liquor with modern health-focused technology. The Moutai-flavor liquor market is known for its high customer loyalty and premium pricing, which can potentially boost BON's top-line. Moreover, JUWO's expertise in both online and offline distribution channels across mainland China can offer BON a rapid market penetration, enhancing its brand visibility and sales volume.

This collaboration also signifies a strategic shift towards product diversification and geographic expansion, minimizing risks associated with over-reliance on a single product line or market. The incorporation of health benefits into traditional liquor could attract a broader consumer base, particularly health-conscious consumers.

However, it's essential to consider potential challenges such as regulatory hurdles in the health products sector and the execution risks in integrating and co-branding these new products. Success will depend on how effectively both companies can merge their expertise and maintain consistent product quality.

Rating: 1 (positive)

This strategic cooperation opens various financial opportunities for BON. By combining their bio-ingredient technology with JUWO's market presence, BON can significantly enhance its revenue streams. The liquor market, particularly high-end sectors like Moutai-flavor, commands strong profitability margins. This could potentially improve BON’s overall financial health by diversifying its portfolio and diluting risks associated with its core bio-tech business.

Given JUWO’s ten-year experience and rich channel resource base, the partnership can also reduce BON's customer acquisition costs and marketing expenditure, allowing those savings to be reinvested into R&D or other growth avenues. Furthermore, the co-branding strategy might lead to synergies that boost both companies' market shares.

Investors should, however, monitor the financial impact on BON’s balance sheet, especially the initial costs associated with setting up this new product line and marketing campaigns. Another consideration is the potential dilution of BON's brand equity if the products do not meet consumer expectations.

Rating: 1 (positive)

XI’AN, China, May 14, 2024 (GLOBE NEWSWIRE) -- Bon Natural Life Limited (Nasdaq: BON) (“BON” or the “Company”), one of the leading bio-ingredient solutions providers in the natural, health and personal care industries, today announced that its operating subsidiary, Xi’an App-Chem Bio (Tech) Co., Ltd., reached a strategic cooperation agreement with Guangdong JUWO Trading Co., Ltd. (“JUWO”) regarding the construction and development of marketing and supply chain systems for liquor distribution and sales, liquor brands, functional liquor and hangover relief products in mainland China on May 8, 2024.

The Company has granted JUWO non-exclusive authority to use the Company’s Brand “App-chem” in the products in the cooperation as “Jiangwang and App-Chem Co-Branding” for alcoholic health products. In this cooperation, JUWO and the Company will launch liquor products under this brand. In addition, JUWO will be responsible for the promotion and marketing of App-Chem’s alcoholic health products, opening the first cooperation between App-Chem’s brand and JUWO’s Chinese Moutai-flavor liquor brand and promoting integrated innovation and market expansion combining Bio-tech and Chinese Moutai-flavor liquor.

Specialized in the commercial marketing of Moutai-flavor liquor in mainland China with more than 10-years’ experience in the liquor commercial distribution market, JUWO’s team has successfully created a variety of Moutai-flavor liquor brands, holding abundant channel distribution resources online and offline in liquor market all over China. The strategic cooperation aims to jointly create high-quality health alcoholic and related products that show the beauty of the combination of traditional Chinese culture and modern technology by utilizing the brand influence of App-Chem in the industry and JUWO’s advantages in distribution and channels in the liquor market.

Mr. Yongwei Hu, Chairman and CEO of BON, stated, “We are very pleased to have a brand strategic cooperation with Guangdong JUWO. We will bring consumers an excellent and innovative product experience, and also work together to develop a new market landscape, which will achieve our business category expansion based on core technology advantages and enhance our competitiveness in the bio-tech industry. The cooperation will bring enormous growth potential to the Company, and we look forward to creating more success stories with our partners and enhancing the Company’s value and profitability to reward our shareholders with even more lucrative results.”

About Bon Natural Life Limited (“BON”)

BON is a Cayman Islands company engaged in the business of natural, health, and personal care industries. For more information, please visit http://www.bnlus.com.

For more information, please contact:

Cindy Liu | IR
Email: bonnatural@appchem.cn

Safe Harbor Statement

This press release contains certain statements that may include “forward-looking statements.” All statements other than statements of historical fact included herein are “forward-looking statements.” These forward-looking statements are often identified by the use of forward-looking terminology such as “believes,”“expects” or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, they do involve assumptions, risks, and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company’s actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company’s periodic reports that are filed with the Securities and Exchange Commission and available on its website (http://www.sec.gov). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.


FAQ

What is the significance of BON's strategic cooperation with Guangdong JUWO?

The strategic cooperation aims to expand BON's market reach in China by leveraging JUWO's distribution channels and creating co-branded alcoholic health products.

When was the strategic cooperation between BON and JUWO announced?

The cooperation was announced on May 14, 2024.

What will JUWO handle in the cooperation with BON?

JUWO will be responsible for the promotion and marketing of App-Chem's alcoholic health products.

What is the primary goal of the BON and JUWO partnership?

The partnership aims to create high-quality health alcoholic products by combining traditional Chinese culture with modern biotechnology.

How does the cooperation with JUWO enhance BON's market position?

The cooperation enhances BON's market position by expanding its product range and leveraging JUWO's extensive distribution network in the Chinese liquor market.

Bon Natural Life Limited

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Medicinal and Botanical Manufacturing
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