Bubs pouring into the US market with Walmart and Amazon partnerships

Bubs pouring into the US market with Walmart and Amazon partnerships

Bubs (ASX: BUB) is poised to scoop up a share of the $5.1 billion US market for infant nutrition with Walmart and Amazon partnerships that will see its formula products sold online.

The initial launch will see two of Bubs' products sold on Walmart.com, marking the company's first foray into having a bilingual English and Hispanic label on its tins.

Walmart.com will sell Bub's goat milk-based toddler formula and its grass fed nutritional milk-based formula, meaning it will be the only Australian goat milk formula product in the US market.

Bubs will also extend its range into Amazon's US site as it is currently only sold on the Australian version of the e-commerce platform.

As part of the international push, Bubs has established a US subsidiary called Aussie Bubs, Inc. based in Northern California to spearhead in-country marketing.

Bubs founder and CEO Kristy Carr said the range will launch online in the US from September 2021.

"We are delighted to announce this important milestone in our continued implementation of our export diversification strategy," Carr said.

"This also marks an important achievement for our Aussie farmers, as we embark on growing our export markets and taking Australia's high-quality standards for purity and provenance into the homes of families across the globe.

"The USA market for infant milk formula is worth some $5.1 billion annually and a projected forecast growth by 2025 of 4 per cent, and the acceptance within Walmart.com and making Aussie Bubs available through Amazon.com gives the business immediate scale access to the market."

Bubs' expansion into the US comes after the infant formula manufacturer managed to claw back most of its lost ground in China with export sales through the company's daigou channel rising 38 per cent in the March quarter.

Export sales to China, which were impacted by border closures last year, rebounded sharply to be just 15 per cent below pre-COVID levels. At the end of December, sales to China were lagging by 55 per cent compared to the previous corresponding period.

Bubs reported group revenue of $11.8 million for the three months to the end of March, down 40 per cent compared to a year earlier when "pantry stocking" led to record quarterly revenue of $19.7 million.

Shares in Bubs are up 30.67 per cent to $0.48 per share at 12.06pm AEST.

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