Kroger and Albertsons to distribute Bubs' infant formula as US shortage continues

Kroger and Albertsons to distribute Bubs' infant formula as US shortage continues

Bubs founder and CEO Kristy Carr.

Bubs Australia (ASX: BUB) has confirmed its products will be available in 4,000 stores across 35 US states from 20 June after signing supply agreements with two of the country’s major supermarket chains, Kroger and Albertsons.  

The two US retailers will distribute the products being delivered by a chartered 747-400F air cargo airplane, which was scheduled to depart from Melbourne’s Tullamarine Airport yesterday as part of ‘Operation Fly Formula’.

As the US looked for solutions to its nationwide shortage of infant formula, Bubs stepped in to guarantee at least 1.25 million cans (the equivalent of 27.5 million bottles), prompting US President Joe Biden to profer his appreciation via Twitter.

“It is certainly a milestone achievement of which Bubs Family can all be proud. We have been working around the clock to ensure we get these critical supplies of infant formula to retail shelves in the USA,” Bubs founder and CEO Kristy Carr said.

“I thank all our team in Australia and the USA, our freight and logistics partners, and the U.S. and Australian Government officials, who have all collaborated to bring this much-needed relief to American families.

“This significant expansion of our retail footprint to over 4,000 stores across 35 States is a truly exciting development. Bubs will be the only Australian-made infant formula available for sale in the USA,” she added.

In May, the US Food and Drug Administration (FDA) confirmed it would exercise its recently enhanced discretionary powers to allow Bubs to export all six varieties of its infant formula to help relieve the pressure created by a product recall from one of the US' most prominent milk formula laboratories earlier in the year.  

“The Kroger Co. is one of the largest retailers in the United States based on annual sales, with 2,750 grocery retail stores serving 11 million customers a day across 35 states. We already have a relationship with Kroger through Ralph’s, Fry’s, Fred Meyer and Food4Less, and now this has deepened with The Kroger Co. confirming ranging of all six Bubs infant formula products, as well as both of our Aussie Bubs toddler formula products, in almost all retail banners within the Kroger group,” Carr said.

“We are also excited to have Albertsons Companies as a new retail partner. Albertsons is one of the largest food and drug retailers in the United States, with over 2,200 stores in 34 states with numerous well-known retail banners. They have confirmed ranging of four Bubs Infant Formula products plus one Aussie Bubs toddler formula product in around 1,700 supermarkets.

“We are looking forward to working with Kroger and Albertsons to ensure Bubs products reach American families most in need as soon as possible.”

Carr confirmed Bubs was not experiencing significant volatility or disruption to supply chains due to the US infant formula shortage and continues to fulfil Australian retailers and export markets with their orders.

Founded in 2006, Sydney-based Bubs is the only infant formula in the world to be based on Australian goat milk and is widely sold in major supermarkets and pharmacies throughout Australia and exported to China, Southeast Asia, the Middle East and the US.

Shares in Bubs (ASX: BUB) have increased by 2.52 per cent as of 11.06 am AEST on the back of the announcement.

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