- Bubs Australia (BUB) has entered into a new supply agreement with supermarket giant, Woolworths (WOW) to increase its revenues
- Bubs first entered into a supply agreement with Woolworths in February 2018 which involved stocking its Goat Milk Infant Formula products across 120 stores
- However, today’s announcement revealed that the number has been boosted to 400
- A multi-media consumer brand campaign will be launched in March, which includes TV, outdoor, digital and social media
- In-store implementation of Bubs Organic Grass-Fed Infant Formula will also begin in March with full distribution completed by the end of May
- Bubs’ share price is currently up 11.8 per cent with shares trading for 78.3 cents apiece
Bubs Australia (BUB) has entered into a new supply agreement with supermarket giant Woolworths (WOW) to boost its revenues.
Bubs first entered into a supply agreement with Woolworths in February 2018 which involved stocking its Goat Milk Infant Formula products across 120 stores.
By now offering the entire range of Bubs’ infant formula products across 700 targeted stores, this new updated agreement reinforces the confidence Woolworths has in the Bubs brand.
“This is a major vote of confidence in Bubs based on a strong performance in stores where we have been represented for the last two years,” Bubs Founder and CEO Kristy Carr commented.
“While the details of the new agreement are confidential, it will have the effect of more than doubling our shelf space exposure and retail points of distribution across the Australian grocery sector,” she added.
The super-premium segment, which includes goat milk and organic formula products, is the fastest-growing sector of the infant nutrition category and now represents more than half of the total infant formula market in Australia.
Under this new agreement with Woolworths, all three stages of Bubs Goat Milk Infant Formula store representations will increase to 400 stores.
The agreement also secures ranging for Bubs’ new Junior Nutrition range to be sold in 100 premium Woolworths stores.
The specially formulated products are tailored to the nutritional needs for older children, supporting immunity and healthy growth and development.
This launch will coincide with the launch of a registered China label equivalent Goat Junior Nutrition product with Lactoferrin, to be ranged in Mother and Baby stores in China.
The Junior Nutrition category in China is worth an estimated $1 billion and has experienced double digit growth since 2017.
The substantial expansion of Bubs across Woolworths will be supported by a strong media campaign in Woolworths media.
A multi-media consumer brand campaign will be launched in March which includes TV, outdoor, digital and social media.
In-store implementation of Bubs Organic Grass-Fed Infant Formula will begin in March 2020 with full distribution completed by the end of May.
Bubs’ share price is up 11.8 per cent with shares trading for 78.3 cents apiece at 1:04 pm AEDT.