Bubs Australia (ASX:BUB) has entered into new supply agreements with two retail banner groups in the US, in anticipation of the arrival of plane number four under “operation fly formula”.
The first group is H-E-B, which is a supermarket chain based in Texas with 340 stores. The second is Meijer, which is an American supercentre chain with 259 stores located predominantly in the Midwest.
Bubs Australia said that there were over 365,000 births in Texas in 2020, compared to around 300,000 in all of Australia. Similar to others, the state has experienced stock shortage and is a primary focus for the distribution roll-out.
For Meijer, Bubs said that the remainder of goods in the air shipment will be distributed to replenish existing stockists including Walmart, Kroger and ABSCO.
Meanwhile, the US government administers a special supplement nutrition program for women, infants and children (WIC Program), which accounts for over 50 per cent of formula consumption in the US.
The WIC Program provides subsidies for American families that require assistance to ensure the women, infants and children receive appropriate nutrition.
Under the FDA enforcement discretion, each state agency is able to consider and authorise Bubs infant formula products for its WIC program participants.
“We are grateful for the opportunity to assist parents under the WIC Program,” said Bubs’ chief executive officer Kristy Carr.
“As Bubs continues to replenish retailer shelves with up to six Bubs® Infant Formula products, it is comforting that many more American parents will have the opportunity to access our clean nutrition that is and will continue to be available on shelves.”
Shares traded at 62 cents last Friday,