Listed goat’s milk infant formula and organic baby food producer, Bubs Australia (ASX: BUB), has partnered with a leading Chinese baby nutrition company to penetrate the Chinese market.
Bubs announced it had signed a memorandum of understanding with Beingmate China, one of the country’s largest infant and maternal nutrition companies.
The company said: “Under the proposed joint venture, Bubs will supply infant formula and organic baby food products to Beingmate’s distribution network covering 30,000 ‘mother and baby’ stores throughout China.
“Bubs and Beingmate will finalise a sales and marketing plan to cover Bubs organic baby food range…and Bubs infant formula.”
Bubs baby foods are already sold in China through 500 retail stores, while its infant formula is sold online and through e-commerce platforms.
The two companies aim to finalise their venture within the next month.
Bubs CEO, Kristy Carr said: “Beingmate’s extensive infrastructure, local knowledge, regulatory expertise and extensive domestic distribution footprint, coupled with Bubs unique premium international offering, will have the capacity to transform our business.
“Beingmate is particularly strong in driving distribution via China’s lower tier cities which are benefiting from China’s new multi-child family policy.”
Beingmate’s CEO, Bao Xiufei said Bubs had a ‘terrific opportunity’ to capture a material share of the super premium market for infant formula and organic baby foods.
“Chinese parents are attracted to the ‘clean and green’ infant nutrition products for which Australia has an enviable reputation,” he said.
“We are particularly attracted to the control Bubs has over its goat milk supply chain from farm gate to the end consumer product, and the sheer size of their milk pool.”
Bubs is based in Frenchs Forest in New South Wales.
Picture: Bubs Australia
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