ATM - A2 Milk Corporation Limited

[MAC]

An interesting summary and read with some good snippets, and a US launch announcement next week;

“A2 milk's UK sales are forecast to double in the second half of this financial year”

“The A2 Milk Company is also promising to expand its Australian market range into ice cream and cheese in the next 12 to 18 months”

"We are talking to Norco and others, said Mr Babidge, who forecast the A2 cheddar cheese launch to follow next year, with other cheese lines being considered, too”

“The A2 Milk Company has been developing a strategy for next week's North American launch for about 18 months, signing on farmers and a contract processor in southern California to release an A2 bottled product of just under two litres in volume”

http://www.farmonline.com.au/news/ag...px?storypage=0

[NT001]

An interesting summary and read with some good snippets, and a US launch announcement next week;

“A2 milk's UK sales are forecast to double in the second half of this financial year”

“The A2 Milk Company is also promising to expand its Australian market range into ice cream and cheese in the next 12 to 18 months”

"We are talking to Norco and others, said Mr Babidge, who forecast the A2 cheddar cheese launch to follow next year, with other cheese lines being considered, too”

“The A2 Milk Company has been developing a strategy for next week's North American launch for about 18 months, signing on farmers and a contract processor in southern California to release an A2 bottled product of just under two litres in volume”

http://www.farmonline.com.au/news/ag...px?storypage=0

Thanks MAC, that's a very good read, which gives an excellent overview of where things are at in a2MC's main markets. Pity we're going to have to wait another couple of years for real action in NZ.

Among other things, it's very reassuring that supply of A2 milk by farmers is not a problem.

There've been reports out of Australia recently that mention lactose intolerance is proving a significant marketing issue for fresh milk exports to China. These reports don't mention A2 or the possibility that many consumers would in fact find A2 overcomes that issue, but obviously the word is likely to get around gradually just as it did in Australia, especially with A2 having already moved into a market-leading position.

[MAC]

I'm encouraged most by the FY growth forecast they've provided for the UK, clearly thus the re-launch strategy would be confirmed on that basis, some good traction, and a steepening of the revenue curve. Confirms what we have seen in my UK ‘a2milkometer’ also, nice.

I just have a feel too NT001 that Californians will really take to a2 very well, that's not based on any particular point of market research aside from the notably open health conscious population and the similarities in lifestyle and trends to Australia, more so than to Europe or the UK.

And, although we don't have direct access to the market research a2MC have performed, the vigorous approach they seem to be taking in launching four products at once and directly into three major supermarket chains perhaps shows the potential a2MC see in California.

For an investment of just $20M we could well see another Australian size market develop over time. Three years to break even is enough focus for now though.

I'm interested too in that they have sourced the US CEO, Jeffrey O'Neill, from Pepsi for a couple of reasons;

Most exec appointments over the last couple of years have come from Campbell Arnotts, they could have kept the club going in the US also but they instead took Jeffrey from Pepsi.

Coca Cola are launching a premium milk product also, it is not within the same target market as a2, and thus won't be direct competition, and social media are already calling it "frankenmilk".

I just wonder speculatively though if a Pepsi product may also launch also, where one goes the other tends to follow, and executive connections between companies often spark discussion around opportunities and M&A.

[airedale]

"Frankenmilk"..? That sounds like a competitor's dirty trick.

[MAC]

"Frankenmilk"..? That sounds like a competitor's dirty trick.

Yeah, a2MC and Coca Cola are both getting some exposure,

http://www.fooddive.com/news/new-pro...dustry/380627/

[NT001]

"Frankenmilk"..? That sounds like a competitor's dirty trick.

No, it wasn't a competitor's dirty trick. The label was pinned on the new Coke-milk by the media and nutrition commentators when its launching was announced, because it isn't real milk at all. Coke makes no secret of the fact that it is put through a series of filters that remove parts of the real milk, and then various additives are added that further alter the nature of the original milk.

[Harrie]

None of the cafes I have been to in Brisbane offer coffee with a2 milk. Most have never heard of it. Even in Paddington which is considered to be a little more health conscious/ trendy the barista said they do not use it because it's too much like water! I think basically it's just a question of the more people ask for it the more likely cafes will try and meet the demand. I think it is also a cost factor. As long as people are not walking out because the cafe does not use a2 milk then they will continue to use standard milk.
encouraging articles MAC. USA looks as though it is heading in the right direction. Nothing in those news items to suggest premium built into the SP currently is unjustified.
At Coles in Towoomba this afternoon. A2 selling as much as any other milk, expiry date 20th April. The blue top is so creamy and tastes great on breakfast cereal.

[davflaws]

Head north. We visited Cairns and the Daintree last October, and there was A2 in every supermarket and store. North of Port Douglas there were a couple of places that seemed to stock nothing else.

[skid]

Head north. We visited Cairns and the Daintree last October, and there was A2 in every supermarket and store. North of Port Douglas there were a couple of places that seemed to stock nothing else.

Sounds like it has been well marketed there in OZ---What they need in the States is some book or articles about ''the a2 milk revolution''

they like things with pizzaz and glitter over there from what I can see

[Harrie]

Doing a bit of see weeding in Milton/Auchenflower at local stores. Over a period of around 10mins at an IGA store Sunday night a2 trim was discounted to $2.49 from $4.99 for 2L but expiry 14th April. None went except a 2L a2 full cream at full price expiry 16/04!
Quite surprised to see Paul's zymil 2L exp 16/04 going out at $4.75. Non permeate "organic" at a faster click than a2.