Changes are happening - please bear with us while we update our site.

Changes are happening - please bear with us while we update our site. Click here to give us your advice and feedback.

Bubs (ASX:BUB) Shares Jump With Big New Partnership

The Bubs Australia Ltd (ASX:BUB) share price has jumped over 6% this morning in response to a key partnership it has made. 

The Bubs Australia Ltd (ASX: BUB) share price has jumped over 6% this morning in response to a key partnership it has made.

Bubs was founded in 2006 by Kristy Carr and was listed on the ASX in January 2017. Its infant formula is based on goat milk and it also sells organic baby food. Bubs recently acquired NuLac Foods, Australia’s largest producer of goat milk products, it also guarantees exclusive supply of local goat milk from Australia’s largest herd of milking goats.

Bubs’ Big New Partnership

Bubs has entered into a strategic equity-linked alliance with Chemist Warehouse.

A binding heads of agreement has been signed with Chemist Warehouse Retail Group to create a four-year alliance for the sale and promotion of Bubs products in Chemist Warehouse stores, commencing on 1 June 2019.

There will be 28 Bubs products on Chemist Warehouse shelves nationally. It’s the largest pharmacy chain network by total sales, with over 450 franchised stores across Australia and New Zealand under the Chemist Warehouse and My Chemist names.

Bubs mentioned that Chemist Warehouse also acts as a gateway to China for Australian brands with Chinese residents and tourists transporting back health and infant nutrition products.

A limited number of Bubs products have already been sold in Chemist Warehouse for some time, but the success of online sales and the quality of the Bubs range encouraged the two partners to make this agreement.

The Bubs products will be sold on Chemist Warehouse’s domestic and Tmall online stores.

The Strategic Partnership

Chemist Warehouse is to provide sales and marketing services for a fee, linked to sales performance targets.

With the marketing fee that Bubs is paying to Chemist Warehouse, the pharmacy business is using that to invest in Bubs shares. It will be an initial 12.36 million shares and a maximum of around 37 million shares.

Bubs Founder and CEO Kristy Carr said: “We firmly believe this transaction will deliver strong growth in Bubs’ business, as well as offer significant long-term shareholder value.

Now, with our key partners in place and a fully vertically integrated business with milk pool security and ownership of our manufacturing facility, we are set for rapid global expansion.”

This is certainly another exciting announcement by Bubs, it is proving to be one share to watch. Ms Carr said it well, the foundations are there for a good amount of growth over the coming years, although it’s definitely not guaranteed.

There is a lot of competition in the infant formula space, so the ASX growth shares revealed in the free report below could be more likely to deliver market beating returns than Bubs.

[ls_content_block id=”14947″ para=”paragraphs”]

[ls_content_block id=”18380″ para=”paragraphs”]

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

Skip to content