Keith Woodford's opinion about the state of A2 milk - interesting read.
It is clear from his opinion piece that ATM has lost sight of the need to invest in R&D to maintain its leading position in the industry - something that top notch companies do.
We all know that ATM did not believe in Jayne's strategy of accelerated spending on marketing and promotion to maintain and enhance its competitive position.
All short term thinking with ATM, it seems and now the new CEO must step up to steer a new direction - long term gain from short term pain.
https://www.interest.co.nz/rural-new...g-across-globe
Excerpts :
"Many more A2 milk and A2 infant formula brands are now emerging across the globe but market leader The a2 milk Company is struggling."
"Internationally, there are multiple A2 brands of both A2 milk and A2 infant formula now available, particularly in Asia, to a lesser extent in the Americas, but with Europe still lagging.
Most of the big international brands now have A2 projects. Including niche marketers, there are probably
more than 20 brands spread across the globe."
And this is the most disturbing bit :
"Whether COVID is the only pothole for ATM is a moot point. About five years ago the company decided to focus on its own brands rather than further developing the category. At that point, they stepped back from major research funding.
Even before that, the company was managed primarily by marketers rather than scientists, but then they pivoted even further towards marketing. I think they were dazzled by their own success. They lost sight of fundamental issues relating to the need to further build the science foundations."