Join our daily newsletter At The Bell to receive exclusive market insights
- Infant nutrition and dairy specialist Bubs Australia (BUB) enters a new supply agreement with Target USA
- This order will be fulfilled from the third Operation Fly Formula air cargo shipment which arrived in the US on June 26
- The products will be distributed to 280 Target stores with gross revenue of roughly $3.2 million
- The remainder of the products will be distributed to restock Walmart stores and banner stores in the Kroger Group
- Shares in Bubs are steady and are trading at 64.5 cents at 11:10 am AEST
Infant nutrition and dairy specialist Bubs Australia (BUB) has entered a new supply agreement with Target USA.
This order will be fulfilled from the third Operation Fly Formula air cargo shipment which arrived in the US on June 26.
The products will be distributed to 280 Target stores with gross revenue of roughly $3.2 million.
The remainder of the products will be distributed to restock Walmart stores and banner stores in the Kroger Group.
The US is currently struggling with a nationwide shortage of formula due to a contamination scare involving the country’s largest formula manufacturer, Abbott.
A fourth shipment is scheduled to arrive in Philadelphia on July 5.
“We are delighted to enter a new partnership with Target, a leading retailer in the infant formula category in the United States and sign a supply agreement for ranging Bubs Infant Formula products,” CEO Kristy Carr said.
“Since receiving the Enforcement Discretion from FDA to import six Bubs Infant Formula products on 27 May 2022, or less than a month ago, our products will be ranged in all four top retailers for infant formula in the USA.
“By mid-July, we expect over 360,000 tins of Bubs Infant Formula to have been made available to major retailers.”
Shares in Bubs were steady and were trading at 64.5 cents at 11:10 am AEST.
