👉 Background: Bubs Australia is a baby formula company founded back in 2006. It specialises in organic and goat milk products and recently dropped a pretty shmick A2 range to rival A2 milk 🍼.

👉 What happened: Bubs just closed a deal to ship off no less than 27.5 million bottles of baby formula to the US, 'cos the folks over there are experiencing a major shortage. We're talkin' over 40% of formula out of stock.

👉 What else: As usual, it all comes back to supply chain problems. And it' doesn't help that a major Michigan baby formula manufacturer had to close amid contamination concerns. Combine that with the effects of on-shoring and the US has put baby (formula) well and truly in the corner.

🔔 What's the key learning?

💡On-shoring is the process of transferring business operations from offshore companies to inside national borders. The pandemic prompted a wave of on-shoring to tackle supply chain issues, delivery and quality control.

💡 But there are definitely some pitfalls to on-shoring too, like lack of stock - and the baby formula shortage is a testament to that.

💡 In the US baby formula market, generally only local ingredients make the cut. Luckily for America (and Bubs), the US government has reduced the red tape around importing formula, and Bubs Australia has been able to step in to save the day.