Shock ousting of Bubs founder, executive chairman

The CEO and Executive Chairman of organic goat infant formula manufacturer Bubs have now been ousted by the company’s board which said it was time for new leadership of the once highly successful brand.

CEO Kirsty Carr was terminated by the board last week with immediate effect ‘due to failure to comply with reasonable board directions’, according to a statement.

The statement said matter of factly: “Former Executive Chair Mr Dennis Lin’s employment with Bubs has also been terminated with immediate effect.

The decisions were motivated by ‘the recent deterioration in Bubs financial performance over the half year’, and the need to change the governance framework of the company.

Katrina Rathie was elected Chair and Richard Paine appointed interim CEO.

Recent results 1H FY23 poor show gross revenue down 10 per cent on the previous corresponding period.

However group branded gross revenue was up 26 per cent and group infant formula gross revenue rose 46 per cent.

The board said a strategic review underway would focus on expenditure management and performance in the China market.

Carr’s ousting is particularly shocking given she founded the business in 2005 and was instrumental in the fast growth of the business, its ASX listing and penetration of global markets, including China.

Operation Fly Formula saw Bubs export 1.25 million tins of Bubs infant formula to the US in response to a call from the Biden administration.

In November, Bubs beat 83 other compoanies to be named Australian Exporter of the Year.

The board said: “We acknowledge Kristy’s long service to Bubs and trhe role she played in building the Bubs brand to the position it enjoys today”.

Further reading:
Browse @AuManufacturing’s coverage of Bubs Australia here.
PLANE #4 OF BUBS INFANT FORMULA TO REACH US THIS WEEK
BUBS AUSTRALIA ENTERS CHINA MARKET
AUSTRALIAN EXPORTER OF THE YEAR AWARD GOES TO BUBS

Picture: Kirsty Carr