Bubs Australia sells organic goat milk formula through Coles and Baby Bunting outlets
Bubs Australia will sell organic grass-fed organic goats milk range through Coles and Baby Bunting outlets, prompting its shares to rise in price.
SHARES in Bubs Australia spiked in early trading on the Australian Securities Exchange this morning after the company announced two new deals with retailers for sales of its infant nutrition products.
The vertically-integrated goat milk infant formula producer said cans of its organic grass-fed product should be on the shelves of 482 Coles supermarket stores early next month.
It already sells Bubs Goat Milk Infant Formula product in 561 Coles stores and Bubs Organic Toddler Snacks in 804 stores across the country.
Bubs also announced a new supply agreement with Baby Bunting for its base infant formula product, its organic grass-fed formula and organic baby food pouches and cereals.
They are expected to be on the shelves in 52 stores this month.
Bubs shares surged to 98 cents this morning, a rise of 10 per cent from yesterday’s close of 89 cents.
They have since settled back to 95.5 cents.
Bubs founder and chief executive officer Kristy Carr said the Coles agreement established the company as a significant participant in the premium organic infant formula category.
“With such strong penetration across all major retail points of distribution in the Australian grocery and pharmacy sector, we are confident the Bubs Organic range will support continued portfolio-wide growth in our domestic volume as we continue to build awareness and trust in the Bubs brand with Australian parents,” Mrs Carr said.
She said the announcements, coupled with an increase in the number of Woolworths stores selling its product, should materially add to fourth quarter revenues in the current financial year.
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