US – Bobbie, the only mom-founded and led infant formula company in the US, is banking on D2C as its major business model as it gears up to gain a larger market share in the US infant market.

According to Laura Modi, the CEO and Co-founder of Bobbie, the demand for infant formula is predictable and repetitive, making a D2C model ideal for the distribution of its products although retail is another fluid option for the business.

Bobbie has recovered from a crackdown and recall in 2018 by the Food and Drug Authority attracting US$ 72 million in investment for its organic “European-style” products in oversubscribed funding rounds.

Laura Modi revealed that investors have been keen to give Bobbie their funding back up in addition to the US$50 million raised in a series B funding a year ago.

“There is a large desire for investment in other product options. The shortage last year, created by the closure of major player Abbott Laboratories’ Michigan facility following a health scare, highlighted there were very few options,” she said.

As one of the few direct-to-consumer organic infant formula companies in the United States, Bobbie has seen skyrocketing demand in the market that is facing a product shortage giving it a chance to bridge the gap.

Bobbie’s infant formula recently gained approval from the U.S. Food and Drug Administration (FDA) after getting over a setback in its first year of operation when the FDA found product labeling errors in their products.

In response, Bobbie voluntarily recalled their infant formula for a short period which was a humbling learning lesson for the founders.

However, the demand for high-quality organic infant formula has far outpaced the expectations of Bobbie’s founders with revenue in the previous year getting to US$18 million exceeding their estimates of US$4 million.

The company’s mission statement revolves around supporting modern parents and their lifestyle needs. It is pursuing many U.S. parents who have sought out European-style infant formula on the black market since European-style organic infant formula is considered higher quality.

“Parenthood is evolving, and we believe it’s about time companies caught up. We are building a new type of workplace that supports today’s parents, a world where flexibility & compassion co-exist with efficiency and ambition,” Laura explained.

By 2026, the market for infant formula is estimated to be at US$103 billion despite the market size, which has led to slow innovation around advancing nutrition for feeding babies.

The company targets in promoting its better-for-you credentials to attract parents and is about to launch a new product, Gentle, on the market.

The project is supported by a 20-person, women-led “motherboard” and a medical affairs team made up of lactation consultants, pediatricians, and other professionals.

‘We had been heads-down on growth and innovation, and what is clear is we have hit product-market fit,” stated Laura Modi. “This is the product parents have been waiting for.”

Bobbie is not alone in the organic infant formula space. Other startups that have gained ground in the space include ByHeart, Biomilq, and Helaina.

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