Although it has given back some of its gains now, the Bubs Australia Ltd (ASX: BUB) share price has been one of the best performers on the Australian share market on Monday.
The infant formula company's shares rose as much as 22% to an all-time high of $1.62 this morning before fading slightly.
At the time of writing the Bubs share price is up 14.5% to $1.52. This means its shares have now rallied an incredible 230% since the start of the year.
Why did the Bubs share price rocket 22% higher today?
Investors have been buying the company's shares following the release of two positive announcements today.
The first announcement revealed that the company has expanded its infant formula portfolio to include cow's milk.
According to the release, Bubs has entered into a supply agreement with Fonterra Australia (ASX: FSF) to produce Bubs Organic new infant formula range. This agreement will make Bubs the first company to offer Australian made certified organic grass-fed cow's milk infant formula.
I've always been a touch sceptical about the size of the goat milk infant formula market, so this is certainly a good move in my opinion. Now the company gets the best of both worlds.
Management advised that this new product range is expected to be available in Chemist Warehouse pharmacies across Australia within three months. After which, the company plans to make it available for export through China's cross-border eCommerce channel.
The second announcement that Bubs made today related to key China and domestic strategic partnerships.
According to the release, the company has formalised its joint venture with Beingmate Baby & Child Food Co, signed a strategic partnership agreement with Alibaba's Tmall, and formalised the equity linked alliance with Chemist Warehouse.
Bubs Australia Chairman, Dennis Lin said: "The milestones we are celebrating today with such renowned partners, as well the recent acquisition of Australia Deloraine Dairy supported by the cornerstone investment in Bubs by C2 Capital Partners, means we are well placed to pursue our strategic goals towards profitable growth."
What now?
I've been impressed with the company's hard work behind the scenes and believe it is well-positioned to take on the likes of A2 Milk Company Ltd (ASX: A2M) and Bellamy's Australia Ltd (ASX: BAL) in China.
But time will tell if its products resonate with consumers and allow the company to win market share away from the big boys.
