Infant formula maker Bubs Australia has signed a supply agreement with diary giant Fonterra to produce Australian made, certified organic grass-fed infant formula.
Fonterra will supply Bubs with organic milk powder, sourced from its organic milk pool in New Zealand, which will be manufactured at its facility in Darnum, Victoria. The conditional supply agreement runs for an initial term until 31 July 2021.
“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,” said Kristy Carr, Bubs Australia founder and chief executive.
“Bubs has already established itself as a key player in the goat dairy infant formula sector in Australia and made significant inroads into China, and is now in a position to be the first to offer an Australian made certified organic grass-fed infant formula with both prebiotics and probiotics, in addition to Omega-3 DHA and Omega-6 ARA.”
The Bubs Organic new range of infant formula will be sold at Chemist Warehouse pharmacies in Australia for three months. Afterwards, the FMCG giants will export the new product range online for Chinese consumers in China.
“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,” added Karr.
The latest move comes after Bubs’ recent acquisition of the manufacturing facility, Australia Deloraine Dairy. Still pending approval by SAMR, its new infant formulas will be sold in China’s baby stores.