The US growth narrative for Bubs (ASX: BUB) continues to accelerate off the heels of the US baby formula shortage. The company's stock is up 7% in early-trade.
This time, Bubs said it has entered into an agreement with Walmart to purchase a shipment of six Bubs Infant Formula products and two Aussie Toddler Formula products, which will be distributed to 800 Walmart stores, across 20 US states.
Under the agreement, Walmart will purchase an entire shipment of 85,000 tins of Bubs infant formula, as part of the US Government’s ‘Operation Fly Formula’ mission.
"This store distribution builds on our existing Walmart.com sales channel," commented CEO Kristy Carr.
Last week, Bubs announced that its first chartered shipment was purchased by two major US infant formula retailers Kroger and Albertsons.
Bubs products will now be sold in approximately 4,800 stores in the US over the coming days and weeks.
The US baby formula shortage has pushed forward Bubs' US distribution plans by more than 12 months.
The company's February half-year results presentation was forecasting distribution to reach 3,000 of the potential 63,000 retail touchpoints by year end.
The question is whether or not the distribution is a one-off due to the baby formula shortage, or will the sales/network relationship remain in place afterwards.
Finance Writer & Social Media
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