Bubs has entered into a binding agreement with China’s Heilongjiang Ubeite Dairy Group (HUG) to manufacture and distribute an ultra-premium range of Bubs China-labelled goat-milk infant formula products.
China’s State Administration for Market Regulation (SAMR) has yet to approve the existing registration application lodged by HUG in line with the new GB standards which come into effect in February.
The China label Goat infant formula has been specially developed for Chinese infants and contains easily-digestible A2 goat milk proteins, sn2 palmitate (OPO), lactoferrin prebiotics and nucleotides.
“Over the past six years, Bubs has built strong brand trust and loyalty with Chinese families through marketing and selling Bubs English label infant formula products in the cross-border e-commerce channel (CBEC),” said Kristy Carr, Bubs CEO and founder.
“Within this financial year, we hope to have the ability to offer both Bubs English label and Bubs China label to parents and caregivers in China. Each is uniquely formulated, and we strongly believe the combination will further enhance brand awareness and cater to different needs and preferences in the world’s largest market.”
In FY22, Bubs’ English label infant formula sales grew 179 per cent in China, delivering $42 million in sales. Once approved by the SAMR, Bubs will have access to China’s $40 billion infant formula market for the first time.
Bubs’ executive chairman, Dennis Lin, said: “We have been closely observing China’s evolving infant formula market dynamics and the recent acquisition of China’s infant formula manufacturing facilities by multinational corporations. Chinese consumers are gravitating towards a ‘China pride’ sentiment’ when choosing Chinese-made products.”
In addition to the Goat OPO slot, Bubs has also secured the first right to refusal to a SAMR-registered ultra-premium A2 protein cow milk slot with the same manufacturer.
Zhitong (Hangzhou) Health Technology will distribute Bubs’ China-label infant formulas in the country. Bubs will hold 75 per cent interest in the newly created venture.
