Bubs Australia surges as it branches into cow milk

New Zealand dairy giant Fonterra will supply Sydney-based Bubs Australia with organic milk powder from its NZ organic milk pool. The powder will then be manufactured into infant formula at a Fonterra processing facility in West Gippsland.

Bubs said the new range of infant formula would be available in Chemist Warehouse pharmacies across Australia within three months.

In order to achieve the growth trajectory that we have planned we will continue to evolve and innovate.

Kristy Carr, Bubs chief executive and founder

Bubs recently announced a four-year strategic alliance with Chemist Warehouse relating to the sale and promotion of its products. Under the equity linked deal Chemist Warehouse could buy up to 49.4 million Bubs shares over three years.

Bubs chief executive and founder Kristy Carr said while goat milk infant formula had been the core driver of the company’s business growth, cow milk infant formula had been on the its road map for “quite a long time”.

“By no means are we walking away from that status, of goat infant formula as a hero part of our product range. In fact we’re going to be doing just the opposite. We’re actively increasing the milk pool and putting a lot of focus around growing the goat infant formula,” she said.

“In order to achieve the growth trajectory that we have planned, we will continue to evolve and innovate,” she said.

Mrs Carr was speaking at an investor briefing and official signing ceremony in Melbourne attended by a range of Bubs’ partners.

Jack Gance, chairman and co-founder of Chemist Warehouse, said his company’s first association with Bubs was carrying its goat milk infant formula online.

“And online it was the biggest demand of anything…the number of page hits on Bubs, and the amount of product we sold just blew us away,” he said.

“And when we got to talk to Dennis (Lin, chairman of Bubs) and the team at Bubs, and they talked about doing a strategic relationship it was a no-brainer,” he said.

Mr Lin said Bubs was “still at the beginning,” of its evolution in China.

“We’ve got a very supportive eco-system (in China), and we are always receptive to advice. We certainly have a significant level of humility,” he said.

Mr Lin said it was “critical” to build strong relationships with Chinese partners on the ground in China when doing business there. “If it’s a pure buy-sell relationship it’s never going to last. We very much focus on partnerships,” he said.

Darren is the mining and agribusiness reporter for The Age and The Sydney Morning Herald.

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