Bubs Australia Limited (ASX:BUB) will supply its range of goat milk-based infant formula, baby food and cereals to Chinese online giant, JD.com International Limited.
JD.com Inc (NASDAQ:JD), a Fortune Global 500 company, is China’s largest retailer by revenue, with more than 266 million annual active users.
Shares up 22% on strong volume
Bubs shares jumped 22% to as high as $0.80 on strong volume of more than 18 million on news of the international supply agreement.
Goat milk-based products continue to experience strong growth in China and the agreement provides Bubs with a pathway to becoming Australia’s only vertically integrated producer of goat milk formula.
Bubs® Goat Milk Infant Formula, Bubs Organic® Baby Food pouches and cereals, as well as CapriLac® goat milk powder, will be sold on JD.com’s e-Commerce platform following Chinese New Year holiday celebrations.
JD.com to open Australian business office
JD.com will open its first Australian business office in Melbourne this month.
This demonstrates the strategic importance of this region and JD.com’s dedication to accelerating the growth of high-quality authentic Australian brands.
As of 30 September 2017, JD.com operated seven fulfilment centres and 405 warehouses covering 2,830 counties and districts across China.
Founded in 2006 in Sydney, Bubs Australia develops and markets innovative infant nutrition products.
In 2017, Bubs Australia acquired NuLac Foods, which included the CapriLac® goat milk powder product.