Bubs Australia shares have jumped yet again after the infant formula maker announced a partnership with Fonterra Australia to produce a new line of organic grassfed formula.
Bubs said on Monday the agreement will make it the first company “to offer Australian-made certified organic grass-fed infant formula”.
The milk will be sourced from New Zealand but manufactured in Fonterra’s facility in Darnum, Victoria.
Bubs were 25.5 cents, or 18.87 per cent, higher at $1.58 at 1031 AEST, having more than doubled in the past two weeks.
While Bubs already has a super premium infant formula made from goat milk, Bubs Australia founder Kristy Carr said cow milk formula accounts for 95 per cent of the Australian formula market and represents a significant opportunity.
Bubs said the Bubs Organic infant formula range would be available at Chemist Warehouse pharmacies within three months, and exported to China soon after.
The supply agreement runs for an initial term until July 31, 2021.