)
The Bubs Australia (ASX: BUB) share price has received a significant boost today following confirmation that the US Food and Drug Administration (FDA) is looking to the Sydney-based business for help as it battles a nationwide infant formula shortage.
Climbing by a mammoth 77 per cent upon opening to a 52-week high of $0.78 per share before falling back to $0.68 as of 12.21pm AEST, Bubs is stepping in to provide support as the US continues to deal with the aftereffects of a product recall from one of its largest milk formula laboratories.
Under the FDA’s relaxed rules, Bubs will provide at least 1.25 million cans of all six of its varieties of infant formula, including its stage 1 and 2 cans of organic grass-fed, supreme A2 beta-casein protein and easy-digest goat milk, which is equivalent to 27.5 million bottles.
Bubs was one of the first companies to respond to the FDA’s new policy, with its submission aided by the company having an already established presence in the US where it distributes and markets Aussie Bubs toddler formula products.
The FDA approval was hastened as Bubs’ complete range of products already adheres to the nutrient requirements in the US Infant Formula Act for iron-fortified infant formula.
“As an Australian infant nutrition specialist, we welcome the opportunity to support American families in this time of need and provide an immediate source of safe, reliable, and clean range of infant formula,” Bubs founder and CEO Kristy Carr said.
“Australia and the United States have relied on each other in times of crisis for more than 100 years. This is no different, 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 Bubs’ ability to move quickly in applying for FDA discretion was a testament to its strong culture and the result of 18 months of preparation and investment in its USA expansion strategy.
“Both Aussies Bubs and Bubs formula ranges are already the recipient of the prestigious USA Clean Label Project Purity Award and the First 1000 Days Promise Clean Label Project Certified, an evidence-based verification process giving parents peace of mind knowing their child is obtaining pure nutrition free from heavy metals, pesticide residues, plasticisers and other chemicals and toxins,” Carr added.
“FDA recognises Australia as having equivalent food standards, and Bubs’ product integrity is assured through having an integrated supply chain back to the dairy source, including full traceability and tight manufacturing controls at our FDA registered facility in Victoria.
“The facility is currently capable of producing 10 million tins of formula annually and can triple capacity to meet demand.”
The Aussie Bubs toddler formula products are available in the US through wholesale distributors DPI Speciality Foods, KeHe and UNFI. Founded in 2006, Bubs is the leading producer of goat dairy products in Australia and also exports to China, Southeast Asia and the Middle East.
FDA Commissioner Robert Califf said the organisation is working around the clock with its US government partners and industry to ensure there’s adequate infant formula available wherever and whenever parents and caregivers need it.
“Steps like the one the agency is taking today mean more infant formula will be available to parents and caregivers in the weeks and months ahead. We will not rest until our shelves are replete with safe and nutritious infant formula,” he said.
The share price of Bubs' competitor A2 Milk Company (ASX: A2M) is up almost 10 per cent today, potentially rising in anticipation of further FDA announcements in the days ahead.
Get our daily business news
Sign up to our free email news updates.
)
)
)
)
)
