Bubs Australia caught the world’s attention when US President Jo Biden tweeted that the infant formula company had been allowed to import more than a million boxes of formula to help ease the country’s crippling supply shortage .
Bubs stock price soared 40% to 68 cents on the news, as the U.S. Food and Drug Administration (FDA) announced on May 27 that it had approved the import of all six Bubs infant formulas into its Supreme A2 Beta-Casein Protein, Organic ranges of grass-fed infant formula and easy-to-digest goat’s milk.
Bubs said the commitment was for 1.25 million boxes, with 500,000 ready immediately and 750,000 to follow.
Bubs Infant Formula and Aussie Bubs Toddler Formula are already being manufactured at an FDA-registered production facility in Victoria, which can triple its current annual capacity of 10 million boxes, the company said.
Bubs CEO and Founder Kristy Carr said she welcomes the opportunity to provide safe, reliable and clean infant formula to families in need.
“Australia and the United States have relied on each other in times of crisis for over 100 years. It makes no difference, and all credit goes to the US government for encouraging initiatives that help us allow you to respond and help.
“Bubs is uniquely positioned with a nationwide sales and distribution footprint, allowing us to quickly stock the shelves of existing and potential retail partners,” Carr said.
The company said the increased supply will leverage its established e-commerce and brick-and-mortar footprint in the United States, having launched its first product in the United States last year.
Bubs Chairman Dennis Lin said, “We identified the United States as a strategic market two years ago, and our commitment to investing has fortunately coincided with a time of need for American families.
“It allows us to accelerate our strategic vision as well as provide support that goes to the core of Bubs’ DNA.”
Carr said the company’s ability to respond was the result of 18 months of preparation and investment in its U.S. market expansion strategy, including meeting stringent FDA quality and nutritional safety requirements. .
Carr said the company has the foundation to reflect its long-term commitment to the United States as a strategic priority for the company.
“We have the customer relationships and processes to support the initiative, including supply and distribution logistics, as well as the appropriate insurance and Aussie Bubs advisory board to help American families.
“We have also appointed a US Advisory Board comprised of leading authorities in clinical research and nutrition, science and pediatric practitioners aimed at providing a pathway to grow in the infant formula market with appropriate approvals,” she said.
The company said its supply to existing Australian and export markets would remain unchanged, with the increase possible thanks to the company’s vertically integrated supply chain and the flexibility of its wholly-owned production plant.