Bubs Australia has partnered with Chinese food manufacturer Beingmate to produce its goat infant formula locally from 100 per cent Bubs Australian goat milk.
As part of the deal, Bubs will likely acquire owning interest in one of the Chinese firm’s factories located in Beihai as well as secure Beingmate’s assistance in taking a State Administration for Market Regulation (SAMR) brand slot, which would be on-sold to the joint venture entity currently responsible for Bubs product distribution within China.
“This will ultimately provide Bubs with a faster route to market and full access into China’s Mother and Baby stores,” said Bubs founder and CEO Kristy Carr.
“Given the current geo-political landscape and regulatory risks, this breakthrough localisation strategy for a ‘Created by Bubs’ product to be packed in China exclusively from our own Australian premium goat milk mitigates key risks and provides a secure pathway to gaining full access to the world’s largest and fastest growing infant formula market, valued at $55 billion.”
The agreement will see Beingmate assist Bubs in reformulating the infant food powder for Chinese babies.
“Now, more than ever, Chinese consumers are seeking premium quality health and nutrition products, especially for their children, with food safety integrity at the forefront of their purchase decisions,” added Carr.
“As we have witnessed in our home market, there is also growing consumer sentiment in China towards pride in purchasing domestically produced products with local relevance. We believe our new strategic manufacturing collaboration with a highly respected Chinese ‘sister’ company offers Chinese parents the best of both worlds: a trusted premium international brand made from Australian ‘clean and green’ quality milk, produced locally in a reputable manufacturing facility.”
Beingmate currently has 51 infant formula products under 17 brands on sale throughout China.