What turned the Bubs share price sour on Wednesday?

Today wasn't good for Bubs and its peers. Here are the details.

The Bubs Australia Ltd (ASX: BUB) share price struggled on the ASX today despite no news being released by the company.

The last time the ASX heard news from the formula and baby food producer was late last month when it announced it was branching into family nutrition.

As of Wednesday's close, the Bubs share price was trading at 55.5 cents, 1.89% lower than its previous close.

While there's no apparent reason why Bubs suffered through much of today, it wasn't alone in its struggles.

The S&P/ASX 200 Index (ASX: XJO) also had a challenging day, closing 0.73% lower. Meanwhile, the All Ordinaries Index (ASX: XAO) slid 0.58%.

Let's take a closer look at what went on with the Bubs share price today.

milk asx share price falling represented by sad child with glass of milk

Image source: Getty Images

Bubs share price struggles on Wednesday

Interestingly, the Bubs share price was one of the better performers among its peers on Wednesday.

The S&P/ASX 200 Consumer Staples Index (ASX: XSJ) also spent much of today in the red before limping in to finish with a 0.04% gain.

While Bubs doesn't call the consumer staples index home (it's actually in the consumer defensive sector), many of its peers do. Thus, the index movement also tends to influence the Bubs share price.

Weighing on the sector was Bubs' direct competitor, formula and milk product producer A2 Milk Company Ltd (ASX: A2M).

The A2 Milk share price slipped 0.33% today to finish at $6.09. While there was no price sensitive news out of A2 Milk, the company did conduct its annual general meeting today.

Other shares in the consumer staples sector that fell today include United Malt Group Ltd (ASX: UMG). United Malt's stock fell 1.6% after it released its results for the financial year 2021. The Treasury Wine Estates Ltd (ASX: TWE) share price also tumbled 1.3%.

The latest news from Bubs

The last time the ASX market heard any news that moved the Bubs share price was on 28 October.

At the time, Bubs announced it was launching a range of cow's milk powder products for the whole family.

The company said that by branching out, it could tap into the US$15.7 billion market for whole milk powder.

Bubs expects to ship initial orders for its new whole milk powder products in the second quarter of the 2022 financial year.  

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Treasury Wine Estates Limited. The Motley Fool Australia has recommended A2 Milk and BUBS AUST FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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