Bubs Australia caught the world’s eye when US President Jo Biden tweeted the infant formula company had been approved to import more than 1 million cans of formula to help ease the country’s crippling supply shortage.
Bubs share price soared 40 per cent to 68 cents on the news, with the USA Food and Drug Administration (FDA) announcing on 27 May it had approved the import of all six Bubs infant formula products across its Supreme A2 Beta-Casein Protein, Organic Grass Fed, Easy-digest Goat Milk Infant Formula ranges.
Bubs said the commitment was for 1.25 million tins, with 500,000 ready immediately and 750,000 to follow.
Bubs Infant Formula and Aussie Bubs Toddler Formula are already manufactured in an FDA registered production facility in Victoria, which can triple its current 10 million tins annual capacity, the company said.
Bubs CEO and founder Kristy Carr said it welcomed the chance of providing safe, reliable, and clean infant formula to families in need.
“Australia and the US have relied on each other in times of crisis for more than 100 years. This is no difference, and all credit goes to the US government for fostering initiatives that allow us to respond and assist.
“Bubs is uniquely positioned with an existing nationwide sales and distribution footprint, enabling us to stock shelves with existing and prospective retail partners quickly,” Carr said.
The company said the increased supply will leverage its established ecommerce and bricks and mortar footprint in the US, after it launched its first product into the US last year.
Bubs chair Dennis Lin said, “We identified the US as a strategic market two years ago, and our commitment to invest has thankfully coincided with American families’ time of need.
“This allows us to accelerate our strategic vision as well as provide support that goes to the heart of Bubs DNA.”
Carr pointed out the company’s ability to respond was the result of 18 months of preparation and investment in its US market expansion strategy, including meeting the stringent quality and safety nutrition requirements of the FDA.
Carr said the company had the foundations to reflect its long-term commitment to the US as a strategic priority for the company.
“We have the necessary customer relationships and processes to support the initiative, including supply and distribution logistics, and the appropriate insurances and Aussie Bubs Advisory Board to assist American families.
“We also appointed a US Advisory Board comprising leading authorities across clinical research and nutrition, science, and paediatric practitioners aimed at providing a pathway to expand into the infant formula market with appropriate approvals,” she said.
The company said its supply to existing Australian and export markets would be unchanged, with the increase possible due to the company’s vertically integrated supply chain and the flexibility of its wholly owned production facility.
