Originally Posted by
Lion_graf
The world's biggest infant formula maker Nestle is launching its own brand of A2-only baby formula in Australia and New Zealand as it looks to muscle in on the dominant position of high-growth stock, The a2 Milk Company.
While many dairy makers have held back from selling products that only have the A2 beta-casein protein, perhaps sceptical about its benefits and cautious of undermining their regular milk sales, a2 Milk has proved to be a huge growth story. Revenue has surged from $NZ62.5 million in 2011-12 to $NZ923 million in 2017-18. The company's market capitalisation has swelled to more than $7 billion.
Now the Swiss giant wants in on the space and is launching its NAN A2 brand in Coles and online in Australia this week. It has plans to sell its S-26 Atwo brand in New Zealand in November at select Countdown stores and online.
A2 milk contains all of the proteins found in standard cows' milk except for the A1 beta-casein protein. Proponents of A2-only milk say the A1 protein causes indigestion.
This major push by Nestle comes on the back of its launch into China in February with its Illuma Atwo formula brand. The NZ and China formula products are Wyeth Nutrition brands, while the Australian product is labelled Nestle Nutrition.