ATM - A2 Milk Corporation Limited

**Harrie** · 01-07-2015, 11:24 PM

Originally Posted by NT001

In the circumstances I agree the setup you mention would be better than most. I believe Deans accept the benefits of A2 and could be a good partner. I recall there were positive contacts between A2 Corporation and Deans at the time of A2C's first foray into the US around 2007-08.

Surprising then that Dean's has not made a concerted effort to continue with a2 milk conversion?
someone had suggested that deans markets around 99% of its milk with a1 protein.
is that able to be confirmed? Why now all of a sudden would Dean's want to be a A2 advocate?

**Joshuatree** · 01-07-2015, 11:24 PM

Anyone know what % of the NZ market A2 has; i suspect a fraction of the re 9% mkt share in AUS(despite seaweeds efforts

. Why is this?.

**NT001** · 02-07-2015, 12:08 AM

Harrie, Deans are probably like Fonterra, they just mix it all up, so virtually all their milk has some A1 in it. But they seem to take pride in being a health-conscious outfit, and market some healthy products alongside their mainstream milk.

JT, I think I've heard a figure of a mere 3,000 litres a day of A2 milk being produced by Fresha Valley up in the far north. It may have been Fresha's boss who told me this a year or so ago. He did tell me they had just 300 a2 cows, so it sounds about right. Wouldn't surprise me if they're having to increase the herd, because A2 seems to be selling quite well now in Countdown stores and he said he would guarantee to meet all orders received (he's probably contractually obliged to). But he doesn't seem to go out of his way to sign up new outlets, and at that time he was actually disposing of some surplus A2 by mixing it into the standard milk he supplies to Auckland outlets.

Why so little? My own guess is that it's really just a sideline for Fresha Valley, which has a monopoly licence in NZ and therefore no competition until the licence expires in 2017. Dumb commercial deals were entered into by A2C back in the early days. The Fresha boss does believe in A2, but doesn't want to irritate Fonterra by building it up too much. a2MC plans to address the NZ market in 2017.

**see weed** · 02-07-2015, 09:06 AM

Originally Posted by Joshuatree

Anyone know what % of the NZ market A2 has; i suspect a fraction of the re 9% mkt share in AUS(despite seaweeds efforts

. Why is this?.

I think it is advertised on tv over there. They will probably do the same in the US. They don't have to worry about Fonterra and could double their sales fast.

**NT001** · 02-07-2015, 11:12 AM

http://seekingalpha.com/article/3297...rom-dean-foods

Here's a very interesting and quite detailed analysis of the problems currently facing Dean Foods. I don't know anything about this source, but the article is full of useful info, making clear Deans is not really in much of a position to be investing in outside deals at present but seems to be on the improve following a bad period. Its interest in unconventional dairy products targeting the health-conscious is highlighted, with a reference to A2 Milk. Interested to hear what others with a better understanding of balance sheets think.

http://seekingalpha.com/article/3297...rom-dean-foods

**baller18** · 02-07-2015, 11:21 AM

Hopefully A2 milk is like kobe wagyu huh

**Harrie** · 02-07-2015, 11:49 AM

Originally Posted by NT001

http://seekingalpha.com/article/3297...rom-dean-foods

Here's a very interesting and quite detailed analysis of the problems currently facing Dean Foods. I don't know anything about this source, but the article is full of useful info, making clear Deans is not really in much of a position to be investing in outside deals at present but seems to be on the improve following a bad period. Its interest in unconventional dairy products targeting the health-conscious is highlighted, with a reference to A2 Milk. Interested to hear what others with a better understanding of balance sheets think.

http://seekingalpha.com/article/3297...rom-dean-foods

"Welcome back to milk" seems like quite a good message then.
Plenty of room to grow the natural milk market given the nutritional value c/f plant based product like orange juices and other lolly water drinks.
Hugh opportunity.
Deans appears to be another synlait type operation. Its a processor, and maybe wanting to get into processing a2 milk and sharing in a2 profits.