‘Authentic Australian’: Bubs vows not to neglect Aussie parents amid US, China growth

Despite the “exciting things going on in our export markets”, Carr said she didn’t want “to lose sight of [the fact] that we are a true authentic Australian brand”.

Bubs was one of the first global companies to receive approval to supply products to the US in response to its baby formula crisis. The process was fast-tracked through a temporary import measure that is on track to becoming permanent.

Although supply to the US was confined largely to the final month of the 2022 financial year, revenue from the US contributed 9 per cent of total group revenue.

The Dandenong-based company will look to introduce its English-label products and strengthen its daigou relationships in China. In the US, Carr said there was still “a lot of long-term growth” and “many milestones to kick”, even though it already had a presence in more than 6000 US stores, triple the Australian footprint.

“American consumers are going through a real journey at the moment because they’re coming out of a market that has been dominated 98 per cent … [by] three brands that have had quite limited innovation over the years,” she said, referring to Abbott’s, Reckitt and Nestle, which until recently were the three biggest players in the $US3 billion ($4 billion) infant formula market.

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Bubs is one of eight global formula manufacturers granted access to the “streamlined pathway” to a permanent presence in the US market. The US Food and Drug Administration will release further details on the pathway in September.

“After this infant formula crisis, we’re seeing a whole new level of dialogue with American families and consumers about trusting infant formula brands that they’re feeding their children,” Carr said.

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