Bubs Australia will launch into Vietnam’s largest baby store chain Bibo Mart from December. The Vietnamese infant nutritionals market is estimated to be worth around AU$2.2 billion.
The infant formula company signed a master distribution agreement with Viet Nam TVV Service and Trading Company (TVV), one of the largest Vietnamese owned distributors in Vietnam’s infant nutrition industry, which distributes to a network of around 20,000 retail outlets.
TVV will distribute and promote Bubs goat milk formula and organic baby food products, with the revenue projected for this initial distribution agreement expected to be AU$1.5 million the first year, and at least AU$2 million by the second year.
“This new partnership with TVV and ranging in Bibo Mart marks the achievement of another milestone for the Bubs’ business, expanding our Asian footprint in one of the region’s fastest growth markets in the infant category,” said Bubs founder and CEO Krist Carr.
“We are honoured to be partnering with TVV’s team and draw on their experience within Vietnam’s infant nutrition category, as well as being selected for ranging across the Bibo Mart store network, which is well-known as the country’s flagship baby retailer.”
Vietnam’s infant nutritional market is growing at a CAGR of 7.7 per cent annually over the past five-year period.
TVV founder and CEO Van Ngo said the long-standing business relationships with baby retailers in Vietnam, including Bibo Mart, Kids Plaza and Tuticare, will benefit Bubs when working together to expand its portfolio representation across the country.
“This is an important opportunity to partner with Bubs Australia given the impressive quality and depth of their premium nutritional range. We particularly see enormous potential in Bubs goat milk infant formula for the Vietnam market,” said Ngo.
“TVV has over seven years of experience in importing milk powder products to Vietnam and is a leader in the B2B category for milk powder. TVV is also well placed to understand Vietnamese consumers and keyinsights across the Mother & Baby category.”
The contractual term of the agreement is for two years and may be terminated if the minimum sales targets are not met.
