Formula goat milk kicks Bubs into life

News of the agreements, with China’s largest e-commerce platform and with an Australian infant formula producer and packer, lifted Bubs shares by 6.3 per cent (five cents), to close at 85 cents on Friday.

Bubs said it had signed an agreement with the online giant Alibaba Group, the largest e-commerce platform in China, which will enable Bubs to establish its own store on Tmall Global.

Bubs said its entire range of infant formula, organic baby food, cereals and snacks would be available on the platform, considered Alibaba’s flagship marketplace for brands.

In other news, Bubs said it had signed a manufacturing agreement with Australia Deloraine Dairy to produce and pack its infant formula products.

The manufacturing agreement is a significant step for Bubs, because Australia Deloraine Dairy owns one of only 15 facilities in Australia that have been licensed by China’s Certification and Accreditation Administration to produce infant formula products eligible for importation into China.

Bubs said the manufacturing facility, in the Melbourne suburb of Dandenong, has an annual production capacity of 10 million tins. Under the deal, Bubs will buy a minimum of 500,000 tins in the first year, post registration of its infant formula with the China Food and Drug Administration (CFDA), with annual increments throughout the deal.

Bubs said it would now “immediately commence” the application process for CFDA registration for its infant formula.

By: Darren Gray

Source: The Sydney Morning Herald


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