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Bubs’ deal with Chinese distributor giant

BubsBubs Australia Limited has signed a Distribution Agreement with QianJiaWanPu Co. Ltd, China’s largest distributor of infant nutrition products.

Bubs said in a statement the Chinese company supplies 80,000 Mother & Baby stores with national coverage across all provinces, equivalent to around 90 per cent of all Mother & Baby stores in China. At least 50,000 of these stores make up their core distribution footprint.

“This is a very exciting and significant development in the execution of our China expansion strategy. QianJiaWanPu is a true leader in the industry, and the trusted principal distribution partner for many of China’s largest multinational brands. We are truly privileged that their founder and chairman, [Dongming] Zhou, recognises Bubs’ growth potential and is committed to supporting our launch into physical retail stores throughout China,” Kristy Carr, founder managing director of Bubs Australia said.

“The importance of the partnership cannot be underestimated given that Mother & Baby stores account for over half of all infant formula products sold in China, and is the prime source for new parents and parents-to-be seeking advice about baby’s development and infant nutrition products. This is why physical representation in the sector is critical to our long-term success in the market, notwithstanding the importance of cross border e-commerce and daigou shoppers as our existing primary routes to market.”

Bubs Australia said it will initially export selected organic baby food pouches, cereals and snacks, which have received accreditation from China Certification & Inspection Group Shanghai validating China Inspection & Quarantine. The opening order value of AUD$1.1M will be supplied in installments between June – December 2018.

“We see the addition of Bubs organic baby food products as an important extension to our current international product portfolio, and wish to build a mutually rewarding long-term relationship with Bubs Australia. In time, we look forward to deepening our association with Bubs once its goat milk infant formula products are approved for import,” said Zhou.

“Premium organic baby food and goat milk based formulas are two segments of the category experiencing rapid growth in China, and I’m confident my retail customers and Chinese mothers will find Bubs’ Australian brand story and premium quality attributes a winning combination. No other infant formula brand in the world uses Australian goat milk, so this point of differentiation will be highly sought-after. I am delighted to partner with Bubs and want to be part of creating their success in China.”

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