- Bubs Australia (BUB) strikes supply agreements with two new US retailer banner groups, H-E-B Grocery and Meijer, ahead of its fourth plane of stock landing in the States
- The fourth plane to land in the US under Operation Fly Formula will carry around 90,000 tins of Bubs infant formula products for around $3 million in gross revenue
- Bubs’ new supply partners are two major retailers experiencing stock shortages under the United States’ critical infant formula supply crisis
- After fulfilling its new supply agreements, Bubs will distribute the remainder of the goods to replenish existing stockists including Walmart, Kroger and ABSCO
- Shares in Bubs are up 4.03 per cent and trading at 64 cents at 11:19 am AEST
Bubs Australia (BUB) has struck supply agreements with two new US retailer banner groups, H-E-B Grocery and Meijer, ahead of its fourth plane of stock landing in the States.
The company said it anticipated the fourth plane load of infant formula products flown to the US under Operation Fly Formula to land on July 6. The plane will carry around 90,000 tonnes of Bubs products for gross revenue of around $3 million.
Bubs in May received US Food and Drug Administration (FDA) approval to begin shipping its products to the US as the country faces a mass shortage of baby formula.
Bubs’ new partners are two major retailers experiencing stock shortages. Texas-based H-E-B has 340 stores, and Meijer has 259 stores in the US’ Midwest.
After fulfilling its new supply agreements, Bubs will distribute the remainder of the goods to replenish existing stockists including Walmart, Kroger and ABSCO.
So far, 22 state agencies have authorised Bubs infant formula products under the US government’s Special Supplement Nutrition Program for Women, Infants and Children, dubbed the WIC Program.
The WIC Program accounts for over 50 per cent of formula consumption in the US.
“As Bubs continues to replenish retailer shelves with up to six Bubs infant formula products, it is comforting that many more American parents will have the opportunity to access our clean nutrition that is and will continue to be available on shelves,” Bubs Founder and CEO Kristy Carr said.
Meanwhile, Bubs said following discussions between various stakeholders including US and Australian governments, it has been agreed that the importation of Bubs infant formula products will receive tariff concession under the Australia-United-States free trade agreement (AUSFTA agreement).
“It is great to see that the strong trade relations and reciprocal recognition of food standards between the two countries have reflected in greater market access for our category, particularly during this time of crisis for American families,” Ms Carr said.
Shares in Bubs were up 4.03 per cent and trading at 64 cents at 11:19 am AEST.