PriceSensitive

Bubs Australia (ASX:BUB) to export 1.25m tins of infant formula to US amid critical supply shortage

ASX News, Consumer
ASX:BUB      MCAP $129.3M
30 May 2022 09:59 (AEST)

This browser does not support the video element.

Bubs Australia (BUB) has been approved by the US Food and Drug Administration (FDA) to import all six of its infant formula products into the US, effective immediately.

Working closely with the FDA and the Biden Administration, Bubs has committed to supplying at least 1.25 million tins of formula over the coming weeks, with 500,000 tins ready for immediate export.

The company said it estimated this would amount to at least 27.5 million feeding bottles for American babies.

The move comes as the United States faces a critical shortage of baby formula across the nation.

Bubs’ products approved for export to the US include the Bubs Supreme A2 Beta-Casin Protein, Bubs Organic Grass-Fed, and Bubs Easy-digest Goat Milk infant formula range.

Founder and CEO Kristy Carr said the company welcomed the opportunity to help support American families in this time of need and to provide an immediate source of reliable and clean formula.

“Australia and the United States have relied on each other in times of crisis for more than 100 years,” Ms Carr said.

“This is no different, and all credit goes to the US government for fostering initiatives that allow us to respond and assist.”

Ms Carr said Bubs already had the necessary customer relationships and processes to support the initiative, including supply and distribution logistics and the appropriate insurance.

She said the company’s FDA-registered facility in Victoria was capable of producing 10 million tins of formula annually and could triple its capacity to meet demand.

The company’s Aussie Bubs toddler formula is already available on US shelves, and Bubs also has an established retail online and brick-and-mortar presence in the country.

Further to this, the company has arrangements in place with the US’ top three national wholesale food distributors.

BUB shares last traded at 48.5 cents on May 27.

Related News