Goat milk maker Bubs to supply direct to China’s largest retailer
Food & Agriculture
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Goat milk formula maker Bubs will sell into China under a new international supply agreement with online giant JD.com.
The website — China’s biggest retailer by revenue — is said to attract more than 266 million annual active users.
That’s a whole lot of fresh eyes for Bub’s entire range of infant formula, baby food, cereals and goat milk.
Shares in the company (ASX:BUB) opened at 71.5c on Tuesday, up 9 per cent from the previous close of 65.5c.
The partnership with Bubs comes as JD.com opens its first Australian business office in Melbourne this month, indicative of the popularity of Australian brands to Chinese consumers.
“Product quality and provenance are critical factors in serving the Chinese market, where goat milk based products continue to experience strong growth,” Bubs chief Nicholas Simms said.
At the end of last year the company acquired NuLac Foods in a bid to become the only vertically integrated producer of goat milk infant formula in Australia.
Last quarter it recorded $2 million in receipts from customers and had $8.7 million in the bank at the end of the period.