ATM - A2 Milk Corporation Limited

[MAC]

The word from California is that A2 milk is already on the shelves in over 1500 outlets there including WholeFoods, Ralphs and Albertsons. At the moment a lot of it is being sourced from the midwest, pretty well bang in the middle of the US, which is a long way from California. I guess that's because the company's original unsuccessful foray into the US was centred more in that region and there would be farmers who switched their herds to A2 at that time. Farms in other states are also being lined up.

At present the milk is being processed in New York state (yes!) before being transported to California, although I'm sure that would be just a temporary arrangement for commercial or technical reasons to enable a2MC to speed up its retail launch. No problem about best-before dates, as its shelf life is weeks, not days apparently.

I don't have any info on how sales are going, but A2 is certainly being talked about, including by nutritionists who are concerned that a lot of young Americans are missing out nutritionally because they have problems with supermarket milk containing A1. It sounds all good. Pity the company isn't telling us more - it's already beginning to sound like a real NZ success story in the great US market.

That's all good news NT001, well done and thanks for sourcing that info for us all.

Presumably the long run herds will be centred on and around Colorado. Still any early kick start initiative has got to be a good thing, and the early initial startup sales would start from a low base anyway whatever the origin of the milk and location of the farms.

There must be very good and sound market research on California to make the logistics attractive even if it is just short term.

Odd that a first US sales announcement has not been made yet by ATM on the NZX and ASX, perhaps within the next couple of days ?

[blobbles]

The word from California is that A2 milk is already on the shelves in over 1500 outlets there including WholeFoods, Ralphs and Albertsons. At the moment a lot of it is being sourced from the midwest, pretty well bang in the middle of the US, which is a long way from California. I guess that's because the company's original unsuccessful foray into the US was centred more in that region and there would be farmers who switched their herds to A2 at that time. Farms in other states are also being lined up.

At present the milk is being processed in New York state (yes!) before being transported to California, although I'm sure that would be just a temporary arrangement for commercial or technical reasons to enable a2MC to speed up its retail launch. No problem about best-before dates, as its shelf life is weeks, not days apparently.

I don't have any info on how sales are going, but A2 is certainly being talked about, including by nutritionists who are concerned that a lot of young Americans are missing out nutritionally because they have problems with supermarket milk containing A1. It sounds all good. Pity the company isn't telling us more - it's already beginning to sound like a real NZ success story in the great US market.

1500 stores!!!? Are you sure? That seems a bit high...

If they sold 10 a day per store... 165 days to FY reporting... ~2.5m bottles @$2 USD per bottle after COGS... $5m USD or ~$6m NZD FY?

1500 stores seems high though, I thought they were only going into Northern California to start with?

[NT001]

1500 stores!!!? Are you sure? That seems a bit high...

That's what I thought. All I can say is the information came from a friend who knows the scene there and is well informed, and was quite emphatic about the figure when I expressed surprise.

[blobbles]

It does seem a bit high, but entirely possible. Will be nice if its accurate :-)

I remember looking up that in the entire US there was:

Kroger stores = 2640
Safeway stores = 1335
Whole foods stores = ~400

So 1500 stores would mean roughly 1/3 of all possible stores in the US given current supermarkets signed up. Does seem a bit high...

1500 stores @10 bottles per day @$4 makes for a nice revenue figure per year of ~$22m. Get that marketing out there! Zooey, where are you???

[Nasi Goreng]

Sounds like we are off to a great start then. I would expect US Facebook page to be set up pretty quickly similar to what they have done in UK. It's interesting to look at posts from time to time to get customer feedback. Have to say, ATMs announcements have been pretty lame with contradicting stuff around launch dates. At least they are ahead of the curve.

10 bottles per day per store sounds optimistic for launch, would be nice to get up to that level by the end of the year. I think my local countdown sells about 2-3 bottles a day.

[NT001]

1500 stores would mean roughly 1/3 of all possible stores in the US given current supermarkets signed up. Does seem a bit high...

1500 stores @10 bottles per day @$4 makes for a nice revenue figure per year of ~$22m.

I seem to remember reading that quite a few outlets are independent stores, not just supermarkets. And I'd be surprised if any will be selling anything like ten a day at the start. It'll be a gradual buildup. But it sounds to me as though a2MC is planning to expand to other parts of the US quite rapidly. Its US CEO is highly regarded and has the experience and contacts to grow the operation pretty quickly. And since the milk is already being processed in New York, the populous and wealthy Northeast would seem like a logical target.

[NT001]

This story about the California launch has just hit my inbox. It doesn't say how many stores, but does say stocks were distributed as of just over a week ago. Media promotion should start pretty soon.

http://www.perishablenews.com/index.php?article=0043853

[Snow Leopard]

Mud West to New Yurk to Cali-forn-i-a ?

Either that milk flies more than I do or it is sold as yoghurt.

Attachment 7284

Best Wishes
Paper Tiger

[Harrie]

http://zeenews.india.com/news/health...s_1572910.html

My have been posted before by NT001 but interesting.

[NT001]

Either that milk flies more than I do or it is sold as yoghurt.

Dunno how it gets from Nebraska to New York but I gather it goes from New York to California by train. Those distances are nothing in the States, where transport systems are very efficient. Of course in winter time it may end up as ice cream. Yum.