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Be the first with the news that moves the marketBaby food supplier, Bubs rose 6.33 per cent on the ASX today, after signing a four-year distribution deal with Chemist Warehouse.
Bubs will issue 12,356,627 ordinary shares to Chemist Warehouse. The company sells a range of infant formula, organic baby food, and cereals.
The deal will welcome 28 products from Bubs onto Chemist Warehouse shelves and Chinese online store, Tmall.
Bubs CEO Kristy Carr says the deal will offer long-term shareholder value.
“Now, with our key partners in place and a fully vertically integrated business with milk pool security and ownership of our manufacturing facility, we are set for rapid global expansion,” she said.
Chemist Warehouse operates 450 stores throughout Australia and New Zealand. Chemist Warehouse will also provide sales and marketing strategies for a fee for Bubs products.
The chain currently boasts $5 billion in sales, $200 million being from infant formula. Bubs currently export to China, South East Asia, and the Middle East.
Chemist Warehouse Director of Operations Mario Tascone says the company had been watching Bubs’ progress for a long time.
Bubs products will hit Chemist Warehouse shelves and online store June 1 this year.
