Bubs has announced a new partnership with Australia's Chemist Warehouse.
Camera IconBubs has announced a new partnership with Australia's Chemist Warehouse.

Chemist Warehouse to stock Bubs' formula

Laura PolsonAAP

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Bubs Australia shares have been boosted on news the company's products will be stocked at Chemist Warehouse stores across the country.

Bubs announced the four-year agreement with the discount pharmacy chain on Thursday, with 28 products to be sold across 450 bricks and mortar stores from June 1.

Bubs shares jumped 6.33 per cent higher to 84 cents at 1248 AEST, up from 78.5 cents a year ago.

Chemist Warehouse, which had already been selling Bubs' products online, has in turn agreed to invest marketing and promotional fees to subscribe for shares in Bubs.

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The agreement provides for an initial issue of 12,356,627 fully paid shares in Bubs, potentially rising to 37,069,881 upon shareholder approval and performance goals.

Bubs' founder and chief executive Kristy Carr said the deal set the stage for global growth.

"This latest powerful alignment with Chemist Warehouse means Bubs' foundation strategy is complete," Ms Carr said.

"Now, with our key partners in place and a fully vertically integrated business with milk pool security and ownership of our manufacturing facility, we are set for rapid global expansion."

Chemist Warehouse chairman Jack Gance said he expected the deal to be the start of a mutually beneficial long-term partnership.

Earlier this month Bubs announced the acquisition of Australia Deloraine Dairy, one of just 15 canning facilities nationally that meets regulatory import conditions into China.

Bubs is sold in Australian supermarkets and pharmacies, as well as exported to New Zealand, China, South East Asia, and the Middle East.

Founded in Sydney in 2006, it sells speciality infant formula, organic baby food, cereals and toddler snacks.

The brand is the only infant formula in the world to be based on 100 per cent Australian goat milk.