The changing shopping preferences of Chinese parents and tighter competition is forcing baby formula business A2 Milk to seek out new ways to survive the headwinds.
This time last year,Bubs Australia was collecting accolades from US President Joe Biden. But a spectacular fallout between the co-founder and her board has sent the business reeling – and left investors to decide the company’s future.
The $4.3 billion milk and infant formula giant has engineered a commendable turnaround since COVID-19 – but are investors pleased?
The infant formula maker has managed to ride out the harsh zero-COVID lockdowns imposed on its most lucrative market,but investors are not impressed.
Shares in the dairy and baby formula company dipped lower after A2 Milk announced changes to its board and outlook.
Dairy giant A2 Milk has been given the green light to export its infant formula to the US,more than five months after its smaller rival Bubs Australia was given approval.
A2 Milk’s shares have jumped after its Chinese-label baby formula producer received approval to continue manufacturing product until late February.
Milk and infant formula maker A2 Milk is returning its focus back to daigou channels after it was forced by the pandemic to pivot and diversify.
A2 Milk has had its approval to import baby formula to the US deferred as it seeks to chase smaller Australian competitors in the market.
Bubs Australia is preparing to send 180,000 tins of infant formula to the US. Meanwhile,its much larger rival A2 Milk is still waiting for US FDA approval.
Joe Hockey knows how hard it can be for Australian companies to crack the lucrative American market. That’s precisely what happened this week for Bubs Australia.