Bubs Australia signs agreement with Chinese e-commerce giant

Bubs Australia signs agreement with Chinese e-commerce giant

Infant food producer Bubs Australia (ASX: BUB) has entered a direct international supply agreement with Chinese e-commerce giant JD.com.

The agreement will see Bubs' entire range of infant formula, baby food and cereals, as well as the group's line of CapriLac goat milk powder sold on JD.com.

The agreement is a massive coup for the Australian producer as JD is China's largest retailer by revenue, with over 266 million active users.

Bubs CEO Nicholas Simms says the high quality of the Australia brand is what attracted the Chinese giant.

"Product quality and provenance are critical factors in serving the Chinese market, where goat milk based products continue to experience strong growth," says Simms.

"Now as Australia's largest producer of goat dairy products with a pathway to becoming Australia's only vertically integrated producer of goat milk formula, Bubs Australia is uniquely placed to broaden its appeal to the Chinese market."

The timing of the agreement could not be more perfect for the Australian brand, as JD.com is set to open its first Australian office in Melbourne in February.

The agreement with JD.com follows Bubs Australia's recent partnership with Australian supermarket giant Woolworths.

In early February 2018 the company signed a stocking partnership with Woolworths, where the listed company will sell its line of infant goat milk formula in Woolworths supermarkets.

Shares in Bubs are up 12.21 per cent to $0.74 per share at 10.43am AEDT.

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