Food & ag: Bubs launches organic grass-fed infant formula, shares hit new high
Food & Agriculture
Food & Agriculture
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Shares in Bubs Australia (ASX:BUB) have once again hit a new all-time high after launching a new range of organic, grass-fed cattle milk infant formula.
Bubs will produce the product, called Bubs Organic, with help from $6.6 billion New Zealand-listed dairy company Fonterra, which will supply Bubs with Kiwi-sourced, Victorian-manufactured organic milk powder.
Bubs says the range will hit Chemist Warehouse shelves within three months — thanks to a national distribution deal it signed with the discount pharmacy retailer — with export to China through ecommerce channels to commence “shortly afterwards”.
All this hullaballoo sent Bubs shares up 22 per cent to $1.62, yet another new record high for the company that has been kicking plenty of goals in 2019.
It follows a wealth of positive news for the company, including:
All of this has BUB shares up 255 per cent since the start of the new year.
Kristy Carr, Bubs CEO and founder, said her company would be the first Australian business to offer organic, grass-fed infant formula.
“Cow milk formula accounts for close to 95 per cent of the Australian formula market and represents a significant opportunity for Bubs, which already has both a premium Australian infant nutrition brand positioning and strong organic credentials established over 13 years producing Bubs Organic baby food portfolio,” she said.
“Super premium product offerings are the fastest growing segment of the infant formula category, and we are now able to offer two nutritional options – organic and goat, to suit individual dietary needs – tapping into the global consumer trend towards natural, sustainable and organic food production.”
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