BUB Fools latest positive

One of the better performers on the local market today has been the Bubs Australia Ltd (ASX: BUB) share price.

April 30, 2018 In afternoon trade the goat milk infant formula and baby food company’s shares are up 4.5% to 83 cents.
Why are Bubs’ shares storming higher?
The market has responded positively to an announcement out of Bubs this afternoon regarding a new distribution agreement in the China market with QianJiaWanPu Co. Ltd.
According to the release, QianJiaWanPu is China’s largest and fastest growing distributor of infant nutrition products, supplying 80,000 mother and baby stores throughout China. This equates to approximately 90% of all mother and baby stores in China.
Bubs will initially export selected organic baby food pouches, cereals and snacks which have already received the necessary accreditation. The opening order is worth $1.1 million and will be supplied in instalments between June and December of this year.
In time the agreement is expected to extend to cover Bubs’ goat milk infant formula products once they are approved by Chinese regulators.
Dongming Zhou, founder and chairman of QianJiaWanPu, believes that Bubs’ infant formula products could go down well with its customers.
He stated that: “I’m confident my retail customers and Chinese mothers will find Bubs’ Australian brand story and premium quality attributes a winning combination. No other infant formula brand in the world uses Australian goat milk, so this point of differentiation will be highly sought after.”