AUSTRALIA – Bubs Australia has entered a new supply agreement with Woolworths, Australia’s leading supermarket chain, that is expected to materially add to double retail exposure for its infant formula portfolio.
Bubs first entered into a supply agreement with Woolworths in February 2018, which involved stocking Bubs Goat Milk Infant Formula products in 120 stores.
Under the new updated agreement, Woolworths will offer the entire range of eight infant formula products across a targeted selection of its 700 strong national store network.
The new agreement will see Woolworths increase all three stages of Bubs Goat Milk Infant Formula store representation more than threefold to 400 stores.
This comes at a time when the company recently launched the Bubs Organic 365 days Grass Fed Infant Formula range into over 300 stores in the Australian pharmacy channel.
Bubs Organic 365 days Grass Fed Infant Formula range has been developed with a super-premium formulation, including both prebiotics and probiotics.
Bubs said that all three stages will now be ranged across 700 Woolworths supermarkets, guaranteeing Bubs a strong foothold on the Australian retail sector.
The agreement also secures for Bubs’ new Junior Nutrition range – specially formulated products tailored to the nutritional needs for older children – to be sold in 100 premium Woolworths stores.
The Australian 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 US$1 billion and has experienced double digit growth since 2017.
Bubs Founder and Chief Executive Officer, Kristy Carr said: “This is a major vote of confidence in Bubs based on strong performance in stores where we have been represented for the last two years.
“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 retail sector.”
According to the infant formula maker, 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.
Bubs said that in-store implementation of Bubs Organic Grass Fed Infant Formula will commence in March2020 with full distribution completed by the end of May.
All other new products and additional store ranging for existing products will also be rolled out into stores by the end of May.