The Bubs Australia Ltd (ASX: BUB) share price has been a big mover in early trade. At the time of writing the infant formula and organic infant food company's share price has jumped up 16% to 18 cents.
The reason for today's gain is an announcement out of the company this morning which reveals that supermarket giant Coles (owned by Wesfarmers Ltd (ASX: WES)) has increased the number of stores that stock its Goat Milk Infant Formula brand.
Previously 322 Coles stores stocked the product. This has now been increased by 42% to 456 stores, effective immediately.
This is a big step forward for the company in my opinion and complements the strong presence of its organic baby food. At present 95% of the 786 Coles stores in operation stock its organic baby food.
Whilst the infant formula market is incredibly competitive and includes big name players such as a2 Milk Company Ltd (Australia) (ASX: A2M) and Bellamy's Australia Ltd (ASX: BAL), clearly Coles must be pleased with Bubs' sales figures if it is expanding its footprint.
According to Commercial Director Nicholas Simms, Bubs will work closely with Coles to "implement tactical marketing campaigns to support the Bubs portfolio, including promotional and targeted digital marketing activity."
Is Bubs a buy?
Whilst I've been impressed with what I've seen from the company so far and believe the future could be bright for Bubs both at home and in the China market, it might be a little too soon to make an investment.
I would suggest investors hold back and wait to see how the company is progressing in both markets before taking the plunge.
