Bubs Australia has entered a supply agreement with Fonterra Australia to produce new Bubs Organic infant formula range.

Under the agreement, Fonterra will supply organic milk powder to Bubs. The powder is sourced from the company’s organic milk pool in New Zealand and will be manufactured at its facility in Darnum, Victoria.

With this new agreement, Bubs Australia will be the first company to offer Australian made certified organic grass-fed infant formula.

Bubs Australia founder and chief executive Kristy Carr said: “Super premium product offerings are the fastest growing segment of the infant formula category, and we are now able to offer two nutritional options, organic and goat, to suit individual dietary needs-tapping into the global consumer trend towards natural, sustainable and organic food production.

“Bubs has already established itself as a key player in the goat dairy infant formula sector in Australia and made significant inroads into China.”

“Bubs has already established itself as a key player in the goat dairy infant formula sector in Australia and made significant inroads into China, and is now in a position to be the first to offer an Australian made certified organic grass-fed infant formula with both prebiotics and probiotics, in addition to Omega-3 DHA and Omega-6 ARA.”

The conditional supply agreement will be effective for an initial term until 31 July 2021. The new Bubs Organic range of infant formula will be available in Chemist Warehouse pharmacies across Australia within three months.

The company intends to export the range to China’s cross-border e-commerce channel in the near future.

Upon receiving approval from the Chinese regulator State Administration for Market Regulation (SAMR), the new range of formula may be physically distributed to China’s Mother and Baby stores.

Last month, Bubs Australia entered a conditional sales and purchase agreement to acquire infant formula producer Australia Deloraine Dairy.