Who knows whether BUB will be the next A2M but the chances are low as stories like A2M doesn’t come around very often (that’s what we were saying about BAL too), and being a late comer to the infant formula scene just makes it that much harder.
Still, the company is trying to expand quickly so it will be interesting to see how it fares as it’s only been listed for just over 6 months. There are a couple of interesting differentiated points between BUB and others such as goat baby formula powder (I’m not sure about you but goat milk has a very different taste to cows milk and it’s not everyone’s taste, but we suppose infants aren’t discerning they drink whatever they are given). Secondly, they are into organic baby food and not just dairy products.
The only issue we can see at the moment is the lack of financial history and profits, hence we would like to see some first before we make an investment case. The FY17 results will be interesting.