Bubs Australia, the infant-formula maker, has signed a master distribution deal with Chinese e-commerce giant Alibaba which will sell its adult goat dairy products.
And it has launched a new brand – Deloraine – for the purpose. It will be produced at the Bubs Australia manufacturing hub in Victoria.
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The agreement will see Alibaba importing the goat milk products and targeting sales of CNY50m (US$7.1m) in the first year by focusing on the 700 million active users on its platforms.
Bubs is aiming to capitalise on the growth of China’s CNY10bn goat dairy market.
Company founder and CEO Kristy Carr said: “This collaboration with Alibaba CIP is a very meaningful and exciting development for Bubs. There is a huge and growing market for premium adult goat-based dairy products.
“Now, with the experience of marketing our current adult product, Caprilac, we are confident in launching an expanded Deloraine adult goat dairy range in conjunction with Alibaba CIP that will cater to the premium end of the segment with science-based functional benefits, including being a high source of calcium, containing naturally A2 goat protein, EGF (epidermal growth factor), and Tryptophan – which aids sleep.
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By GlobalData“Clearly the Alibaba CIP program and related platforms have unique reach into the China adult nutrition market – some 700 million active users. At the same time, we are the only Australian, vertically-integrated producer of goat-milk formula and so are uniquely positioned to offer Alibaba’s platform-wide customers the comfort that we have complete control of the supply chain right back to the farm gate.”
Bubs sees China as a key market for its products. Last month, it appointed Dennis Lin as its executive chairman with a remit to drive the company’s China strategy and in June it entered a deal in China with baby product retailer Kidswant.
