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. 

The post Here's why the Baby Bunting (ASX:BBN) share price is edging higher appeared first on The Motley Fool Australia.

At the time of writing, the Forbidden Foods share price is down 5.97%. This compares with the All Ordinaires Index (ASX: XAO) which is up 0.9% to 6,444 points.

What does Forbidden Foods do?

Forbidden Foods is a multi-brand food, beverage and ingredients company that focuses on baby food, wellness and organic markets. Established in 2010, the business has over 50 different products falling into three brands – Forbidden, Sensory Mill and Funch.

The company operates through national and international sales channels through distribution partners and via e-commerce.

New range stocked

According to the release, Forbidden Foods has secured ranging with FoodWorks stores nationally.

The new agreement will see the company supply a number of its products to over 500 independent supermarkets across Australia. This includes Funch Baby Foods, Funch Health Snacks Mixes, Sensory Mill Plant-Based Flours and Sensory Mill Organic Apple Cider Vinegar.

The range is expected rollout out to all stores from January 2021.

Forbidden Foods estimates the initial revenue from the new deal to be around $1.8 million annually.

The company highlighted that FoodWorks is one of Australia's largest independent retail supermarkets groups. The giant supermarket group produces approximately $2 billion in sales per year, and presents a growing opportunity.

Management commentary

Forbidden Foods co-founder and COO Jarrod Milani commented:

FoodWorks / AUR's 500+ strong network of locally and community focused supermarkets gives us a significant opportunity with our FUNCH & Sensory Mill brand to engage shoppers and build trust, in particular in baby foods and plant-based foods where we have 100% Australian Made and can talk to the provenance of our ingredients.

AUR direct manager Nic Ciampa also spoke about the new partnership:

We think Forbidden Foods has a range of innovative and quality products our stores and customers will love. We also think the 100% Australian Made ingredients will resonate strongly with our customers. The support Forbidden Foods provide from their national sales force in the form of store education and engagement is key to a successful store ranging.

Despite the news, investors sent the Forbidden Foods share price tumbling to 32 cents per share at the closing bell.

The post Why did the Forbidden Foods (ASX:FFF) share price tumble 5% today? appeared first on The Motley Fool Australia.

Earlier today the premium food, beverage, and ingredients company's shares were trading as high as 40 cents.

When the Forbidden Foods share price hit this level, it meant they had doubled in value from their IPO price of 20 cents.

At the time of writing, the company's shares are fetching 36 cents, up 80% on their listing price.

What is Forbidden Foods?

Forbidden Foods has a focus on the baby food, wellness, and organic markets, with diverse national and international sales channels.

It 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.

The company's products are stocked by the likes of Costco, Metcash Limited (ASX: MTS), and Woolworths Group Ltd (ASX: WOW).

It generated modest growth in FY 2019, with revenue coming in at $3.43 million, up from $3.37 million in FY 2018. Both years the company recorded losses: $192,500 in FY 2019 and $263,098 in FY 2018.

Positively, things were better for its top line during the first half of FY 2020, with Forbidden Foods recording revenue of $2.14 million. This was up almost 13% on the prior corresponding period. However, it continues to operate at a loss and posted a loss after tax of $0.54 million for the half.

What about the future?

According to its prospectus, management expects to grow its revenue to $4.1 million in FY 2020. This will be an increase of 19.5% year on year.

However, due to the pandemic, it isn't able to provide forecasts further out from here.

Nevertheless, Forbidden Foods' co-founder and CEO, Marcus Brown, remains positive on the future.

He said: "There is much to be excited about in the near future for Forbidden Foods. We aim to launch new innovative product lines, deepen our existing market penetration and broaden our international focus. We expect the demand for healthy 'better for you' and plant-based food products to only increase, and we believe Forbidden Foods is well placed to establish and grow market share in our targeted sectors of the food and beverage industry."

The company notes that it operates at the nexus of two growth segments in food – Plant-Based Foods and Baby Foods.

These are currently worth US$20 billion and US$214 billion globally per annum, respectively, and are growing at a solid rate.

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