Bubs in Vietnam: Aussie infant nutrition firm strikes major distribution deal

By Tingmin Koe

- Last updated on GMT

Bubs Australia's range of organic infant formula products.
Bubs Australia's range of organic infant formula products.

Related tags Vietnam Australia Infant nutrition

Bubs Australia is on an expansion spree in Asia, with its latest move in Vietnam, where its infant nutrition products will be available in major mother-and-baby store Bibo Mart.

The goat milk specialty firm signed a master distribution agreement with Viet Nam TVV Service and Trading (TVV) – one of the largest Vietnamese-owned infant nutrition distributors.

With it, the firm will have access to baby products retailers such as Bibo Mart.

Its products, including goat milk infant formula and organic baby food products, are expected to be available in Bibo Mart from next month.

The deal is expected to generate about AUD$1.5m (US$1.03m) in the first year and grow to at least AUD$2m (US$1.37m) by the second year.

“This new partnership with TVV and ranging in Bibo Mart marks the achievement of another milestone for the Bubs’ business, expanding our Asian footprint in one of the region’s fastest growth markets in the infant category,” ​said Kristy Carr, founder and CEO of Bubs Australia.

Earlier this month, Bubs Australia also inked a new deal with Alibaba in China.

With it, it will launch an entirely new goat dairy range “Deloraine” via Alibaba’s Centralised Import Procurement (CIP) initiative.

The firm added that it would progress with its Asian expansion strategy beyond China along its recent win in the Premier’s New South Wales (NSW) Exporter to Asia award, beating competitors such as Universal Pharmaceuticals.

TVV, on the other hand, has been importing milk powder products into Vietnam for over seven years. Other baby product retailers that it is working with include Kids Plaza and Tuticare.

“This is an important opportunity to partner with Bubs Australia given the impressive quality and depth of their premium nutritional range. We particularly see enormous potential in Bubs goat milk infant formula for the Vietnam market,”​ said TVV’s Founder and CEO, Van Ngo.

Vietnam's potential

Vietnam’s infant nutrition sector has grown at a CAGR of 7.7% annually in the past five years and is estimated to worth VDN$33.6tr (USD$1.45bn), according to a Euromonitor report from last August.

The infant milk formula category alone is valued at VND$28tr (USD$1.21bn).

Other firms are also making their in-routes into Vietnam. In April, Asahi-Nutifood launched a new range​ of mother and baby formula branded “Wakodo”.

These products contain galacto-oligosaccharides (GOS) to improve intestinal health and stool consistency – common children’s digestive problems seen in Vietnam.

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