ATM - A2 Milk Corporation Limited

[MAC]

Can anyone who was at the AGM add any context or detail to Geoff Babidge's reported statement that "sales in New Zealand remain minuscule and the sole licensee, Fresha Valley, has been told its licence won’t be renewed when it lapses in May 2017."?

Such a message to FV must have been preceded by some discussion as to why it is not pushing the product harder on to supermarket shelves, in which case FV had two options - either smarten up, or offer to surrender its licence, which can't exactly be a huge source of income. Since it is apparently determined to hang on to the licence but only provide "minuscule" service, one can only assume FV is in cahoots with Fonterra and under orders from Fonterra to slow down A2 sales in NZ for as long as possible. Which is rather what you'd expect. Fonterra is probably also urging Countdown not to push A2, which may account for some of the empty shelves reported on this thread.

He made a comment NT that shareholders had been asking what was intended with the local market, and thus went on to say that the Fresha agreement expires in May 2017 and wouldn't be re-newed, had a sort of wry suggestive smile when he said that actually. Whilst talking on the matter he made a point twice of reminding us all that the Fresha agreement is "non exclusive", perhaps that means we may see some direct marketing earlier than 2017, who knows.

[blobbles]

Or it could be same situation as I used to have here - so little a2 shelf space that it sells out before the shelves are restocked... Of course if the supermarket is not getting the milk it's another story. Also, would countdown listen to fonterra when a2 is one of its top selling products in auz?

there seems to be a big chocolate milk following on here - I was under the impression chocolate milk wasn't that popular anymore, but stand corrected. I would have thought ice cream, cheese, yoghurt etc would come first considering there shelf life and popularity. There was some mention of requests from china - wonder what they could be? I'm pretty sure ice cream is huge over there from Chinese guys I have met over the years, can someone on the ground over there confirm that? That's what I'm hoping for anyway, preservative, additive, colour free a2 - I would buy it by the wheel barrow!

I doubt most Chinese will care TBH, icecream is not "huge in China", it's a luxury food/sweet consumed mostly in the McDonald's / KFC varieties. NZ natural icecream does a good trade throughout all of China though, but again its luxury food in China.

NZ is such a small market, that will be the main reason they don't really care about us or concentrate on us much. When they have UK /USA/China markets to concern themselves with this makes sense. And as a shareholder I support this view.

[NT001]

He made a point twice of reminding us all that the Fresha agreement is "non exclusive", perhaps that means we may see some direct marketing earlier than 2017, who knows.

That's great! Many thanks MAC. An obvious option would be to use the tie-up with Synlait for domestic supply as well as for export, but there are others too. There are farmers in Waikato who I believe have gone all-A2 but don't have a buyer at present. Just taking over Fresha's operation up in the far north wouldn't make much sense - for one thing, it's not well located for widespread distribution. Given what you quote Babidge as saying, I'd expect something to happen well before 2017, even if it's flying supplies in from NSW initially.

[NT001]

A very good report here from Australia's BRW on the ATM AGM.

http://www.brw.com.au/p/business/lis...5C4BFT9U9iPSZI

[Beagle]

A very good report here from Australia's BRW on the ATM AGM.

http://www.brw.com.au/p/business/lis...5C4BFT9U9iPSZI

Thanks. 38% growth in Aussie is very strong. Thing I like with this is the growth in sales funds future growth unlike many of the other growth companies on the NZX which burn cash at a great rate of knots.

[Ginger_steps_]

I doubt most Chinese will care TBH, icecream is not "huge in China", it's a luxury food/sweet consumed mostly in the McDonald's / KFC varieties. NZ natural icecream does a good trade throughout all of China though, but again its luxury food in China.

NZ is such a small market, that will be the main reason they don't really care about us or concentrate on us much. When they have UK /USA/China markets to concern themselves with this makes sense. And as a shareholder I support this view.

Thanks for the insight, like I said, I was pretty sure, not certain, the Chinese I have met over the years devoured ice cream so I assumed it was very popular - luxury or not. I guess you could put fresh milk etc under the luxury label for chinese as well.
P.s im in Aussie not NZ, and I expect they will release other products here first considering oz is there cash cow.

[winner69]

well all that excitement and exuberance didn't last long did it .... yes shareprice was 69 cents the other day .... hope it wasn't any of you guys that bought at that price .... off course

ASM all over and dusted, nothing more likely to happen for a while so whats going to drive the shareprice up now?

ASX listing unlikely to do much unless Freedom use it a vehicle to sell down or out .... that might created the touted liquidity in Australia. ASX listing done little for SUM, EBO, XRO etc

I given up on my $1.10 .... just take what I can this time around

[Ginger_steps_]

well all that excitement and exuberance didn't last long did it .... yes shareprice was 69 cents the other day .... hope it wasn't any of you guys that bought at that price .... off course

ASM all over and dusted, nothing more likely to happen for a while so whats going to drive the shareprice up now?

ASX listing unlikely to do much unless Freedom use it a vehicle to sell down or out .... that might created the touted liquidity in Australia. ASX listing done little for SUM, EBO, XRO etc

I given up on my $1.10 .... just take what I can this time around

It was to be expected with the large seller I guess, Im taking this as an opportunity to add to my longterm portfolio at a discount. Without the large seller in the future, I believe we just had a good indicator of which direction the price is headed.

[see weed]

Is anyone out there still holding atm? I feel like been left holding the calf. This is starting to feel like Snakk Media. And such a positive agm. Has anyone moooooved on lately?

[Beagle]

I bought in a modest position following the ASM and am looking at a small loss at the moment but I am happy. 38% yoy increase in Aussie is a really big deal and funds a lot of future growth. Patient investors will be rewarded.