Sydney-headquartered company Bubs Australia announced today it had entered into a supply agreement with Chinese online giant JD.com, sending the company’s share price up almost 13 per cent to 74 cents per share.
The company, established in 2006, was listed on the Australian Securities Exchange in January last year at 10 cents per share and remained relatively stable until surges in August and November, when it reached a peak of $1.07 per share on November 7.
Late last year Bubs Australia acquired NuLac Foods, which produces fresh goat milk, yoghurt and goat milk powder under the CapriLac brand.
The $38 million deal turned Bubs Australia into the largest producer of goat dairy products in the country.
Bubs Australia chief executive Nicholas Simms said the company was well placed to serve the Chinese market, where product quality and provenance were critical.
“Now as Australia’s largest producer of goat dairy products with a pathway to becoming Australia’s only vertically integrated producer of goat milk formula, Bubs Australia is uniquely placed to broaden its appeal to the Chinese market,” Mr Simms said.
Bubs Australia’s infant formula, baby food pouches and cereals and CapriLac goat milk power will be sold on JD.com in March, following Chinese New Year celebrations.
JD.com is China’s biggest retailer by revenue, with more than 266 million active users as of September last year.
Earlier this month the e-commerce giant, founded by billionaire Richard Liu, announced it would open its first office in Australia as part of an expansion plan into the region.
The company will open a headquarters for its Australian and New Zealand operations in Melbourne next week.
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