|Photo: FoodBev Media
The range of products from Bubs will officially hit the shelves of 135 BiboMart supermarkets, starting from early December 2019.
A Bubs representative said that the two-year deal is expected to generate a revenue of approximately US$1.02 million during the first year, and US$1.36 million in the second year.
The agreement struck with Vietnam TVV Service and Trading Co., Ltd also contains a clause stating that the deal can be terminated if minimum sales targets are not met. Despite this, Bubs have expressed their desire to enter into a long-term partnership and move into the US$2.2 billion infant nutrition market that currently exists in Southeast Asian nation.
According to a statement by Bubs, the new partnership with TVV and Bibo Mart marks a new milestone as the Australian firms seek to expand into Asia and Vietnam, a country that it considers to be one of the region's fastest growing markets.
Ngo Tran Khanh Van, CEO of TVV, said she believes that there is huge potential for the Bubs brand domestically, adding that co-operation with Bubs Australia presents an important opportunity due to the firm’s high-quality products and intensive nutrition formula.
The Australian enterprise is a well-known brand of goat milk and is regarded as an intensive and fully-produced form of "organic" milk in its home country.
Ahead of signing the distribution agreement with a Vietnamese partner, Bubs also finalised an agreement with Alibaba Centralised Import Procurement of China to introduce their latest brand Deloraine Dairy to the Chinese market.