The Bubs Australia Ltd (ASX: BUB) share price is up 7.7% after the infant formula business announced its first deliveries to the United States.
There is currently an infant formula shortage in the US, so the government is taking action to reduce the problem.
Bubs joins US ‘Operation Fly Formula‘
In an announcement today, Bubs revealed the US government has sourced the first two flights to transport six different Bubs infant formula products to the US.
The US Department of Agriculture and the Department of Health and Human Services is authorised to use Department of Defense contracted commercial aircraft to deliver infant formula that meets US health and safety standards.
Since the initial announcement by the US Food and Drug Administration (FDA), Bubs has been working closely with the US government and key stakeholders to get their products to US families as quickly as possible.
Bubs will be distributing 1.25 million tins of Bubs infant formula products to leading US retailers. A series of shipments will go to the US in the coming weeks.
The first flights are scheduled to depart Melbourne Tullamarine Airport on 9 June and 11 June.
Bubs expects its products to be on the shelves of major retailers soon after arrival. Bubs will work with its retail partners to ensure products are sent to states with the greatest shortages.
CEO comments
The Bubs CEO Kristy Carr said:
We would like to express our deepest gratitude to the Biden Administration for extending Operation Fly Formula to enable Bubs to assist American families as quickly as possible. Our team members are working around the clock in conjunction with the White House to resolve logistical challenges so that we can have Bubs Infant Formula products on shelf in major American retailers as quickly as possible.
Carr also participated in a ‘roundtable’ discussion convened by President Biden and senior officials. Bubs was the only manufacturer from the Asia Pacific region present.
What comes next?
Bubs is finalising subsequent flights and logistics now. The Biden Administration will announce details of additional deliveries in the coming days.
The products will be distributed widely throughout the US across a large number of major retailers.
Bubs share price snapshot
The Bubs share price shot to a 52-week high of 84 cents after the announcement of Operation Fly Formula on Monday. It has since drifted back to 64 cents today. Even so, it’s still up 38% this week.
The post Bubs share price jumps on first US shipments appeared first on The Motley Fool Australia.
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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended BUBS AUST FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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