Ann: MOU to Manufacture SAMR Infant Formula in China, page-156

I think there is a generally biased view that Chinese milk is very bad - it mainly from the 2008 Sanlu Milk scandal and that caused all Chinese parents losing faith about Chinese infant milk. After that the Chinese 'daigou' started to grow exponentially and every parents wanted to buy imported milk.

At that time Chinese milk company went through a very difficult time and changed their strategic focus to 3rd and 4th tier cities, and selling at very competitive price. Also people from 3rd and 4th tier cities feel generally happy with infant milk made in China.

Imported milk dominated the market of the 1st and 2nd tier cities over the past many years, however Chinese government paid a lot of attention to the quality of infant milk and put in place very strict enforcement measures, some sources say that is the strictest in the world - I don't know if that is true. Bub has obtained SAMR Approval for imported milk and certifierd CNCA Chinese manufacturing facilities, I think that is a great move to open market to not only the 1st and 2nd tier cities, but also 3rd and 4th tier cities.

I understand the perception that Chinese infant milk is inferior and import milk is somewhat superior - that is from Sanlu Milk scandal 12 years ago and very hard to restore confidence - hard but changes are slowly happening. I am glad that BUB sees that.

Anyway I have confidence in BUB and just tripled my holdings at 79c.