Under the deal, its flagship Bubs Organic grass-fed infant formula will be sold in 700 stores. Its goat milk infant formula will be available in 400 stores, while junior nutrition portfolio in 100 stores.
This distribution of the products will start in March.
The new deal also offers a retail presence that it is also nearly six times more than two years ago when Bubs first signed a supply agreement with Woolworths.
Back then, the deal only involved the distribution of Bubs’ goat milk infant formula in 120 stores.
Bubs founder and CEO Kristy Carr described the deal as a “major vote of confidence in Bubs based on strong performance” in the stores that their products have been present for the last two years.
She added that this also reflected a growing demand for premium infant formula across the Woolworths network.
“It will have the effect of more than doubling our shelf space exposure and retail points of distribution across the Australian grocery retail sector.
“This significant expansion of our all-Australian manufactured product lines is now validated with our increased presence in Woolworths and is a significant step-change for our business,” she said.
She is also confident that the new deal will have a “significant uplift” in the domestic Australia volume.
Indeed, the company has been seeing strong domestic sales growth from partnership with retailers.
In its 1H FY20 financial report, it said that domestic sales grew 30% as compared to the previous corresponding period, driven by strong penetration in Coles, Woolworths and launch into Chemist Warehouse.
Aside from being present in more stores, Bubs will also increase the current product range available in Woolworths to a total of eight different products.
The eight products are all three stages of its flagship super-premium organic grass-fed infant formula, all three stages of its goat milk infant formula, and two junior nutrition products.
Of which, the Bubs Organic grass-fed infant formula will be the most widely distributed since it will be available in 700 Woolworths stores.
All three stages of its goat milk infant formula will be available to 400 stores, up from the previous 120 stores.
These products will also be available on Woolworths online store.
Even with the increase in demand, all the eight products would be manufactured in-house by the company at its Deloraine facility.
New junior nutrition
While Bubs is well known in the infant formula space, it has now expanded its area of expertise to include milk products for children, which was newly launched in mid February.
Its junior nutrition portfolio caters for children between 3 to 12 years old.
The products available under this category is the Bubs Organic grass-fed junior nutrition milk and Bubs goat junior nutrition milk. Under the deal, the two products will be sold in 100 premium Woolworths stores.
Carr said that the introducing junior nutrition products have been ‘a key element’ of the company’s growth strategy, such that its products are available throughout a child’s different life stages.
With the addition of pre/probiotics, DHA and ARA, the products are said to be designed for immune support, healthy growth and development of older children.