Bubs Australia will establish a joint venture (JV) with infant nutrition company Beingmate to distribute and promote its portfolio of infant formula and baby food products in China.

The companies signed a memorandum of understanding (MoU) to form the JV in Shanghai.

Under the terms of the agreement, Bubs will supply its products to Beingmate’s distribution network, which covers 30,000 Mother and Baby stores in China.

Bubs founder and CEO Kristy Carr said: “Beingmate’s extensive infrastructure, local knowledge, regulatory expertise and extensive domestic distribution footprint, coupled with Bubs unique premium international offering, will have the capacity to transform our business.

"Chinese parents are attracted to ‘clean and green’ infant nutrition products, for which Australia has an enviable reputation."

“Beingmate is particularly strong in driving distribution via China’s lower-tier cities, which are benefiting from China’s new multi-child family policy, and so there are higher expectations for addressable market growth than in the Tier 1 cities where the costs to entry are high.

“Importantly, Chinese parents want only the best when it comes to infant nutrition, and in this regard, Beingmate has an established brand position with the ‘Beingmate Successful Child Care System,’ which over the last 20 years has helped more than 10 million Chinese families.”

Currently, Bubs products are sold in China through various channels including cross-bordere-Commerce and online-to-offline platforms.

With 280 infant formula and baby food products in its portfolio, Beingmate is reported to be one of the largest Chinese owned enterprises in the infant and maternal nutrition industry.

It also owns the largest number of registered infant formula brands in China, including 17 sub-brands and 51 product lines, which are currently distributed across the country.

Beingmate CEO Bao Xiufei said: “We believe there is a terrific opportunity for Bubs to capture a material share of the super-premium infant formula and organic infant food sectors, both of which are experiencing rapid growth in China.

“In particular, Chinese parents are attracted to ‘clean and green’ infant nutrition products, for which Australia has an enviable reputation.”

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