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

Image source: Getty Images

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. 

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

Share Market News

Why Calix, Collins Foods, Myer, and Patriot Battery Metals shares are charging higher

The S&P/ASX 200 Index (ASX: XJO) is back on form and charging higher on Tuesday. In afternoon trade, the benchmark index…

Read more »

Man in yellow hard hat looks through binoculars as man in white hard hat stands behind him and points.

Are Fortescue shares a contrarian buy after falling 20% in a month?

Are investors putting too much weight on the jitters of the market or is the Fortescue fall fair?

Read more »

A young woman wearing a blue and white striped t-shirt blows air from her cheeks and looks up and to the side in a sign of disappointment after the ASX shares she owns went down today
Share Fallers

Why DroneShield, Paladin Energy, Red 5, and Synlait shares are falling

These shares are having a tough time on Tuesday. But why?

Read more »

Man raising both his arms in the air with a piggy bank on his lap, symbolising a record high.
Bank Shares

Nine-year highs: NAB share price glides to highest level since 2015!

The bank has notched up another inflection point today.

Read more »

ANZ ASX 200 banks capital return Group of investors madly grabbing for cash on city street.
Healthcare Shares

ResMed shares rebounding as investors rush to buy the dip

ResMed is rising as ASX investors buy the dip following yesterday's 13% share price dive.

Read more »

A woman screams and holds her hands up in frustration.
Share Market News

Why is short interest in Sayona Mining shares growing?

Why won't short sellers leave this lithium miner alone?

Read more »

A woman in a bright yellow jumper looks happily at her yellow piggy bank representing bank dividends and in particular the CBA dividend
Bank Shares

CBA shares hit another new high! Too late to buy?

At today's new record price, CBA's market capitalisation is just $1 billion short of the ASX 200's most valuable stock,…

Read more »

A group of stockbrokers sit in a room with several computer screens in front of them as they discuss the Zip share price and Zip's merger with Sezzle
Broker Notes

Why these 3 ASX 200 shares just gained significant broker upgrades

The brokers just boosted their outlooks for these ASX 200 shares. But why?

Read more »