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Bubs Australia (ASX:BUB) secures flights for infant formula delivery

ASX News, Consumer
ASX:BUB      MCAP $129.3M
02 June 2022 11:24 (AEST)

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Bubs Australia (BUB) has secured two flights to transport the delivery of six varieties of the company’s infant formula products to the US.

The Biden administration announced the Fourth Operation Fly Formula Mission will transport the first two deliveries on June 9 and 11, 2022, departing from Melbourne Tullamarine Airport.

The initial shipment will arrive at one of Bubs’ nominated distribution centres, based in Pennsylvania.

The packages will include Bubs Supreme A2 Beta-Casein Protein, Bubs Organic Grass Fed Cow Milk, and Bubs Easy-digest Goat Milk Infant Formula and Follow-On Formula products.

President Biden launched Operation Fly Formula to speed up import times in a bid to stock baby formula in stores as quickly as possible.

 Under the operation, the USDA and the Department of Health and Human Services (HHS) have been authorised to use Department of Defence contracted commercial aircrafts to deliver those infant formulas that meet US health and safety standards.

The US has been struggling with a nation-wide shortage of formula, which was exacerbated by a contamination scare involving its largest formula manufacturer, Abbott.

As such, the Australian baby formula company has been working around the clock to manufacture more than a million tins to combat the situation.

The initial delivery will include 380,000 pounds of Bubs Australia infant formula, in around 4.6 million eight-ounce bottles.

Altogether, Bubs will distribute a total of 1.25 million tins (27.5 million bottles) of Bubs Infant Formula products to top US retailers over a series of shipments in the coming weeks.

“We would like to express our deepest gratitude to the Biden Administration for extending Operation Fly Formula to enable Bubs to assist American families as quickly as possible,” Founder and CEO Kristy Carr said.  

Bubs said it will continue to work closely with the US Government to have the first delivery loaded and ready for take-off.  

In addition to the initial two shipments, Bubs has been working on the airfreight of remaining products to be delivered in the coming weeks.

Bubs climbed 9.4 per cent, trading at 64 cents at 11:22 am AEST.

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