Novarex, Riman sign agreement to jointly develop health-functional food

South Korea's health functional foods company Novarex and cosmetics company Riiman Korea met to promote the health-functional foods business together.

The two companies signed on Monday a memorandum of understanding (MOU) to jointly implement R&D activities for developing innovative health-functional foods. 

Health-functional food (HFF) is a product that used or processed functional ingredients that are nutritious and healthful for our bodies.

The deal is expected to create synergies as it will mix the manufacturing and R&D strengths of Novarex and the powerful marketing channels of Riman.

Novarex, engaging in the development and production of functional raw materials and HFF, is the No. 1 HFF company both in terms of capacity and quality in Korea, according to  Novarex Chairman Kwon Seok-hyung.

It also boasts the largest number of proprietary raw materials and domestic and overseas patents among Korean companies.

"We will create synergy effects with Riman based on the innovative manufacturing technology and abundant know-how in multivitamins," said the chairman Kwon.

Riman, a cosmetics-based marketing company, last year recorded the highest revenue of 715 billion won ($561 million) among domestic sponsored door-to-door sales companies, beating out such giants as LG Household & Health Care and Amorepacific Corp. 

"I am happy to have HFF market leader Novarex as our partner in product R&D activities. Riman will introduce differentiated products by strengthening healthcare-oriented products for basic nutrition," said Kim Kyung-joong, CEO of Riman Korea. 

Write to Kyeong-je Han at hankyung@hankyung.com