Originally Posted by
BlackPeter
Not so sure about this.
Synlait says they are holding the IP to the A2 infant formula (there is more than milk in it ;); as well as holding the import licence for the A2 formula into China. I don't see why we should not believe them.
Nobody else can legally manufacture this formula nor sell it into China.
Any other company first would need to develop their own formula (which would be different to the Synlait A2 formula) - and than they would need to go through the whole approval process with the Chinese authorities.
Not impossible, but it would take considerable time and money.
In my view it is more likely that A2 will use the other A2 sources to produce different A2 milk products (like liquid milk, cheese, ...) which are lower margin.
Obviously - A2 could go for a takeover of Synlait, than they would own the IP and the licences. Mental note ... buy some more SML ;);