Shares on organic baby food and infant powder producer Bubs Australia (ASX: BUB) leapt 12 per cent on Monday to a record $1.45 on news of a new supply agreement with NZ dairy producer, Fonterra.
The company announced it will be the first company to offer Australian made certified organic grass-fed infant formula, with Fonterra Australia to produce Bubs Organic new infant formula range.
Fonterra will supply Bubs with organic milk powder, sourced from its organic milk pool in New Zealand, which will be manufactured at Bubs facility in Darnum, Victoria.
Also today Bubs formalised its key China and domestic channel strategic partnerships.
These are a Joint Venture with Beingmate Baby & Child Food Co, a Strategic Partnership Agreement with Alibaba’s Tmall (Tmall), and an equity linked alliance with Chemist Warehouse retail outlets.
The Bubs Organic range of infant formula will be available in Chemist Warehouse pharmacies throughout Australia within 3 months.
Export to China’s cross-border eCommerce channel will follow shortly afterwards.
Bubs also produces a range of goats milk derived baby and infant products.
Picture: Bubs Australia
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