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Bubs Australia to produce goat milk infant formula for Chinese market
Bubs Australia will manufacture and distribute Bubs’ Chinese-label goat milk infant formula in China according to new Chinese standards. under an agreement with Heilongjiang Ubeite Dairy Group (HUG).
The new standards will come into effect in February 2023 .
The “ultra-premium” infant formula has been specially developed for Chinese infants using easily-digestible A2 goat-milk protein, sn2 palmitate (OPO), lactoferrin prebiotics, and nucleotides.
HUG has started submission with the State Administration for Market Regulation (SAMR) to renew its registration in line with China’s new GB standards for exclusive use under the Bubs brand.
According to Kristy Carr, Bubs founder and CEO, they have built strong brand trust and loyalty with Chinese families through marketing and selling Bubs English label infant formula products via the crossborder eCommerce channel, which accounts for around 20 percent of total Chinese infant formula sales.
If approved by SAMR, the formula will give Bubs access to the remaining 80 percent of China’s $25.9 billion infant formula market.
Bubs will also enter into a joint venture agreement, where it will hold a 75 percent interest, with Zhitong Health Technology to distribute its Chinese label goat infant formula products.
Bubs Australia expects to launch its product in the second half of FY23, subject to receiving SAMR approval.