Bubs licences its infant formula for manufacture in China

Infant formula manufacturer Bubs Australia is to have a Chinese-label version of its goat milk infant formula products manufactured in China to take advantage of increasing ‘buy China’ sentiment among consumers.

The company, which made cross-border sales in the past year of Australian made infant formula in China worth $42 million, will continue to sell its Australian label products in China alongside the new products.

This gives Bubs access to all of China’s $40 billion infant formula market for the first time.

Bubs CEO Kristy Carr said: “Over the past six years Bubs has built strong brand trust and loyalty with Chinese families through marketing and selling Bubs English label infant formula products in the cross border e-commerce channel which accounts for 20 per cent of total infant formula sales.

“IN FY22 (sales) grew 179 per cent…this new registration would enable Bubs China label infant formula products to be marketed and sold in the remaining 80 percent.”

The company has agreed with Heilongjiang Ubeite Dairy Group (HUG) to manufacture the China label products, with product launch likely to begin in the second half FY23.

Bubs has developed an ultra-premium Bubs China label goat infant formula specifically for Chinese consumers, based on A2 milk sourced from HUG’s farms in north-east China.

Production facilities are sited less than 90 minutes from their farms, enabling a one-step conversion process into dried powders.

HUG has also been given first right of refusal to manufacture Bubs China brand cow milk products in the future.

Picture: Bubs Australia