The oversupply of infant formulas by various brands has led to a slowdown in revenue growth for Australian organic goat milk specialist Bubs, and the firm foresees that the situation will continue to include the upcoming Double 11 shopping festival.
Bubs Australia is hoping to expand its presence in China via the general trade route through the introduction of its first China-label goat milk infant formula.
Bubs Australia’s infant formula sold in the US will receive tariff concessions under a trade deal, while the firm has also announced agreements with two additional retail groups to sell its products.
Australia’s and New Zealand’s infant formula makers have been “encouraged” by the recent success of local brand Bubs’ entry into the US amid the shortage crisis in the country, with a number now examining export opportunities.
Infant formula maker Bubs reported a record high gross revenue coming from corporate daigou companies, which help individual sellers navigate hurdles such as procurement and deliveries.