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Bubs and Alibaba launch new goat dairy range in China

Consumer
ASX:BUB      MCAP $133.8M
05 November 2019 22:34 (AEST)

Bubs Australia has signed an agreement with Alibaba CIP to launch “Deloraine” which is a new brand of adult goat dairy products.

Under the agreement, Bubs and Alibaba aim to capitalise on the growth of China’s RMB 10 billion (A$2 billion) goat dairy market.

“This collaboration with Alibaba CIP is a very meaningful and exciting development for Bubs. There is a huge and growing market for premium adult goat-based dairy products,” Bubs Founder and CEO Kristy Carr said.

The companies signed a master distribution agreement during an official ceremony at the China International Import Expo in Shanghai.

Alibaba and its distributor, The Land, will promote and distribute the adult goat dairy range across the entire Alibaba online and offline ecosystem, as well as other external General Trade and Cross-border eCommerce channels.

Alibaba’s CIP (Centralised Import Procurement) initiative is an important solution offered by Tmall Global. It helps international brands, like Bubs Australia, accelerate entry into China and capitalise on the high demand for high-quality products.

Bubs will use is experience with marketing its “CapriLac” range, to launch Deloraine.

Deloraine boasts science-based functional benefits including being a high source of calcium, containing naturally A2 goat protein, EGF (Epidermal Growth Factor), and Tryptophan which aids sleep.

“Clearly the Alibaba CIP program and related platforms have unique reach into the China adult nutrition market – some 700 million active users,” Kristy stated.

Importantly, Bubs is the only Australian integrated producer of goat milk formula which makes it uniquely positioned to offer Alibaba’s customers comfort in a high-quality product supply chain.

Bubs and Alibaba expect to ship A$10 million (RMB 50 million) of the CapriLac and Deloraine product range within the first year.

Bubs Australia is up 2.78 per cent and trading for $1.11 at 11:55 am AEDT.

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