There is a lot of commentary on this thread regarding limiting the potential of the brand, a lot of which I agree with.
NZ's QEX comments today and that made by Bubs regarding Chinese customers on the ground shifting their sentiment and wanting locally-made formula is ringing true.
QEX is a freight group with a specialist interest in china. Their comments are and I quote "QEX has warned that Chinese parents are reluctant to order infant formula from overseas because they fear transmission of the corona virus, our customers tells us many parents are cautious of importing infant formula directly from overseas countries due to fears of the virus spreading and at present, prefer to purchase stock already on the ground in China via local online stores or direct from bonded warehouses"
Bubs acquisition to eventually supply low to mid tier cities with the made in China product is not a bad move considering they are still going to be producing a new premium formula for tier-1 cities. What lamchop says about Jen, vitamins etc is true and important given there are no Daigou sales channels likely on the horizon in the short term.
We also have penetration in Vietnam and Malaysia / other Asian countries to look forward to.
I think BUBS is probably one of the worst hotcopper forums on this place with too much emotionally driven dribble and up/down ramping. I have hesitated to post in the past and am likely not to do so in the future however ask yourselves this question, do you want a company that is proactive or reactive to the autocratic regime that China is?
BUB Price at posting:
91.5¢ Sentiment: Hold Disclosure: Held
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