Bubs Australia has entered into a binding agreement with Heilongjiang Ubeite Dairy Group (HUG) to manufacture and distribute Bubs’ Chinese label goat milk infant formula in China.
The “ultra-premium” infant formula will be made according to new Chinese standards that will come into effect in February 2023. The formula has been specially developed for Chinese infants using easily-digestible A2 goat-milk protein, sn2 palmitate (OPO), lactoferrin prebiotics and nucleotides.
HUG has commenced submission with the State Administration for Market Regulation (SAMR) to renew its existing registration in line with China’s new GB standards for exclusive use under the Bubs brand.
Bubs founder and CEO, Kristy Carr, said: “We are pleased to announce this important milestone for the company to renew an existing registered SAMR brand slot for Bubs China label goat infant formula products in partnership with a reputable Chinese infant formula manufacturer”.
She continued: “Over the past six years, Bubs has built strong brand trust and loyalty with Chinese families through marketing and selling Bubs English label infant formula products in the cross-border eCommerce (CBEC) channel, which accounts for around 20% of total infant formula sales in China.”
If approved by SAMR, the formula will give Bubs access to the remaining 80% of China’s AUD 40 billion ($25.9 billion) infant formula market.
Bubs will also enter into a joint venture agreement with Zhitong (Hangzhou) Health Technology to distribute its Chinese label goat infant formula products, which will see the company holding a 75% interest in the newly created joint venture.
Bubs Australia expects to launch its product in the second half of FY23, subject to receiving SAMR approval.
© FoodBev Media Ltd 2024
