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Infant formula company Bubs Australia (ASX: BUB) has achieved its first major project through a joint venture formed in March, with the announcement today of a strategic channel partnership with China's largest mother and baby store chain.
In March the Australian company entered a JV with Beingmate, a dairy company listed on the Shenzhen Stock Exchange with a market capitalisation of AUD$1.39 billion.
It hasn't taken long for that connection to reap rewards as the Bubs/Beingmate JV has entered a deal with retailer Kidswant which will see Bubs Organic food products stocked in 275 large-scale physical stores in key shopping areas of 123 Chinese cities.
Bubs estimates retail sales thrgouh Kidswant will reach RMB30 million (AUD$6.2 million) in FY20.
"We are delighted to establish this strategic partnership with Kidswant, the No.1 baby store chain in China," says Bubs chief executive officer Kristy Carr.
"Kidswant's store footprint and full-service integrated membership model provides us with immediate access to our core potential customers in a trusted ecosystem."
Beingmate CEO Xiufei Bao says the "cooperation" with Kidswant is the most important project that has been signed and implemented since the establishment of the JV.
The company highlights Kidswant is a data and consumer relations-based omni-channel family service provider, with online shopping malls and a mobil terminal app in addition to its offline stores. In addition, it also provides a parenting and purchasing consulting service with in-store and online professional childcare consultants.
Kidswant has an annual turnover of around AUD$2 billion and reaches 60 per cent of China's cities which have populations of more than 500,000.
BUB shares were up 17.8 per cent after the market open today at $1.095.
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