Here's why the Baby Bunting (ASX:BBN) share price is edging higher

The Baby Bunting (ASX: BBN) share price is edging higher today after the company announced a new partnership with Forbidden Foods.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Baby Bunting Group Ltd (ASX: BBN) share price is on the rise today as the company announced a partnership with fellow ASX share Forbidden Foods Ltd (ASX: FFF). At the time of writing, the Baby Bunting share price has edged 0.69% higher on the news. As a result, shares in the baby goods provider are currently trading at $4.37.

It has been a strong year for the Baby Bunting share price which has risen by 34% in 2020. This is despite the global pandemic, which saw multiple Baby Bunting stores close earlier in the year. For comparison, the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) has increased by 8.18% over the same period. 

baby with look of surprised as if at huge increase in COVID baby boom asx shares

Image source: Getty Images

What's driving the Baby Bunting share price?

The Baby Bunting share price is inching higher following the news the company's stores will begin stocking Forbidden Foods 'Funch' baby foods. The agreement will see the baby retailer ranging seven Funch products nationally from January 2021. Moreover, the release noted that there may be scope to grow the partnership moving forwards.

COO and co-founder of Forbidden Foods, Jarrod Milani, commented on the agreement, noting:

Baby Bunting is at the forefront of baby products and has unprecedented access to new parents, we couldn't be more pleased to have such a strong retail partner like Baby Bunting supporting the FUNCH Australian plant-based baby foods range.

Our arrangement with Baby Bunting shows there is strong demand for innovative and also 100% Australian sourced baby foods catering to the growing next generation of millennial parents.

What is Forbidden Foods?

Forbidden Foods is a multi-brand food, beverage and ingredients company focusing on baby food and wellness and organic markets. The company made its debut on the ASX in August this year, with its shares rocketing 55% since then. 

On the Forbidden Foods website, it states:

The Company was established in 2010 with a vision to provide Australia with the very best health foods and to meet growing consumer demand for differentiated, plant-based and health-oriented products.

More about Baby Bunting

Baby Bunting is Australia's largest specialty baby goods retailer with 58 stores nationally and a strong online presence.

It is Baby Bunting's online business that has been critical to its ongoing success throughout the COVID-19 pandemic, with click and collect sales growing by over 200% in the first quarter of FY21. Online sales growth was also up an impressive 126%.

Editor's note: This article originally listed Jarrod Milani as CEO of Forbidden Foods, however, has been updated to reflect that Mr Milani is COO and a co-founder of the company. 

Motley Fool contributor Daniel Ewing owns shares of Baby Bunting. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

Winning woman smiles and holds big cup while losing woman looks unhappy with small cup.
Share Gainers

Here are the top 10 ASX 200 shares today

Another day, another loss for investors.

Read more »

a woman in a wheelchair sits at her desk in her home with headphones on and looking at a computer screen of figures. monitoring the CBA share price
Share Market News

Top 10 ASX shares bought and sold in April

Amid the fuel crisis and fears of a recession, here are the stocks that investors traded most.

Read more »

A smiling woman holds a Facebook like sign above her head.
Broker Notes

5 ASX shares scoring upgraded ratings this week

Experts have raised their ratings on JB Hi-Fi, Beach Energy, Amcor, and others this week.

Read more »

A woman has a thoughtful look on her face as she studies a fan of Australian 20 dollar bills she is holding on one hand while he rest her other hand on her chin in thought.
Share Market News

Should I sell my Telstra shares in May?

If I owned Telstra shares, here's what I'd do next.

Read more »

Magnifying glass on a rising interest rate graph.
Share Market News

Buying ASX shares? Here's what to expect from Tuesday's RBA interest rate meeting

Leading experts sound off on the RBA’s likely next interest rate move.

Read more »

A man sitting at his dining table looks at his laptop and ponders the share price.
Broker Notes

Down 65%: Is this ASX 300 stock a cheap buy?

This stock has been sold off. Has this created a buying opportunity? Let's see what Bell Potter is saying.

Read more »

Three guys in shirts and ties give the thumbs down.
Broker Notes

5 ASX All Ords shares downgraded by brokers this week

Brokers have reduced their ratings on PLS Group, Fortescue, Webjet, and others this week.

Read more »

A man sits in contemplation on his sofa looking at his phone as though he has just heard some serious or interesting news.
Broker Notes

Does Ord Minnett rate Goodman shares as a buy, hold, or sell?

The broker has been looking at a big agreement signed this month.

Read more »