GARDEN GROVE, Calif., April 15 /PRNewswire/ -- MacaSource, Inc. (MacaSource), a privately held corporation, reported that they entered into a contract with S&G Korea (S&G), an importer of products to the Republic of Korea.
The contract is guaranteed for three years with minimum purchase requirements of 180k per quarter, 720k per fiscal year. In return, S&G is granted the exclusive rights as the sole distributor for the MacaSource brand of gelatinized maca herb in Korea.
"MacaSource has grown rapidly in the past six months," explained MacaSource's CEO and Chairman, David Smith. "We recognized an opportunity in August 2001 viewing results from the 9-month Phase I human clinical trials with gelatinized maca that indicated a 180% increase in sexual libido and 200% increase in sperm count and sperm motility. At that point we focused exclusively on importation, packaging and distribution of gelatinized maca."
Smith explained that while there was a fair amount of market saturation of maca products, very few distributors carry the gelatinized maca, a highly concentrated derivative. Because it was the gelatinized version used in the clinical trials, Mr. Smith was confident that he had a competitive advantage to gain market share quickly.
"Nobody was talking about gelatinized maca," Smith explained. "They were all talking about the clinical trials but nobody was talking about the fact that their maca was not even close to the specifications of the gelatinized maca used in the study."
"Even though my costs were triple [compared with regular maca] I wanted to buy the gelatinized maca. That gave MacaSource credibility. Six months later MacaSource is the #1 brand around."
C.H. Nam, director of S&G in the Republic of Korea had this to say: "We are very honored to be the exclusive distributor for MacaSource in Korea. We are expecting a long and prosperous relationship."
The first shipment is scheduled for June at which time Mr. Nam expects to have video and airtime allotments to launch his campaign.
MacaSource is also currently in negotiations with distributors in Australia, Austria, New Zealand, Switzerland, Taiwan and the U.K. in addition to domestic distribution opportunities.
-- ABOUT MACASOURCE --
MacaSource is engaged in the import, export and distribution of the Peruvian Andes herb, maca.