A mega deal involving an Australian company will see more than 1 million tins of safe baby formula finding their way to the United States to help ease a critical shortage.
Bubs Australia will provide at least 1.25 million tins of formula – equal to 27.5 million bottles – to the US in the coming months. Austrade played a key role in brokering the deal.
The deal will help ease a US infant formula crisis. The crisis is largely due to a major US manufacturing facility recently closing and pandemic-related supply chain issues.
The US Food and Drug Administration has approved Bubs Australia to export six of its baby formula products.
US President Joe Biden spruiked the deal on Twitter, garnering huge worldwide exposure for Bubs Australia’s efforts to help ease the shortfall.
Bubs Australia can help fill the gap immediately with its products already in the US. Its Victorian manufacturing facility is operating around the clock to produce more formula.
In addition to the US, Bubs Australia will continue to supply the Australian market as usual.
The deal is a significant moment for Bubs Australia, giving the high-quality and safe food manufacturer with a reliable supply chain an important opportunity to step up further on the world stage.
Not only will it help ease the US formula crisis, but it also provides assurance to countless families that their children will have reliable access to safe baby formula.
Australia is the envy of the world when it comes to production and manufacturing protocols and capacity. Our agriculture sector’s clean, green, safe and reliable reputation is also second to none.
Austrade has worked closely with Bubs Australia for some time, helping the company to diversify as it navigated the twin challenges of the pandemic and difficult global trading conditions.
As a result of its hard work to diversify into the US – landing deals with the world’s biggest retailer (Walmart) and e-commerce platform (Amazon) – Bubs was perfectly positioned to seize this latest opportunity.