ATM - A2 Milk Corporation Limited

[lascar]

It is such a beat up, especially since no one has actually gotten ill from the product, and that it is limited to such a small amount of product. Food products are recalled all the time - check out http://www.recalls.gov.au/content/in.../itemId/952823 for the list of recent recalls, both Fonterra and A2 have been on that list in the last few years. I'm not sure why the media are sensationalising it, which is probably making customers and countries much more nervous than is necessary. Some media are behaving as if NZ entire national GDP is been eliminated over night!

As far as I'm concerned, we have a track and trace food safety system so that things like this DO happen. The system works. If I were Chinese, I'd rather use NZ formula that is subject to rigorous testing, than Chinese formula which is not. There are always inherent risks with the food we eat - lysteria, salmonella, botulism, blah blah blah - I still eat oysters and seaford despite suffering food poisoning twice (once from eating at Disneyland in LA, but pretty sure Disneyland is still open and going strong!).

Chinese do prefer foreign brand formula if they can afford. Discovering Botulism is not the major problem. The real problem is it take so long for Fonterra to react.
NZ formula is just one of foreign brands.

[goldfish]

Well said KW I agree. You would think tv3 wants to ruin fonterra, and our economy.

[MAC]

Here’s some new numerical sales data and targets released today by Peter Nathan.

In regard to Australian and Chinese infant formula sales;

"We'll be on shelf by the end of August and we are looking at a 5 per cent market share. We are looking at selling 400,000 units of 900 grams per tin in Australia," he said. It expects to ship $60 million worth of formula to China by 2016”.

In regard to Australian fresh milk sales;

"We have over 7 per cent market share in grocery and our sales are up 50 per cent on the prior year. We are still the fastest rising dairy product," he adding, saying a2 is the No. 1 and No2 branded milk within Coles and Woolworths respectively”.

Great news from Australia, over 7% market share in milk now achieved, now have their sights on 5% market share in infant formula also.

To put the China story in perspective, at FY12 ATM total revenues were 61M, they are now aiming at 60M in revenues from China infant formula sales alone by 2016.

And, of course, all that market share comes with an A2 price point premium over all their A1 competitors.

http://www.news.com.au/lifestyle/foo...-1226691601421

[MAC]

Back in June, Geoff Babidge whilst at a conference in Europe, suggested that ATM may potentially also enter the USA and Canada market within the next 12 months. There's no shortage it seems of market or ambition.

[MAC]

You know, ………. at a time when one of their A1 competitors has botulism and sat on the matter putting the entire industry at risk, ATM could well have just put an announcement into the market saying, not our problem, wasn’t our factory, we’ll be right mate.

But instead they chose to be bold, engaged directly with the media, conveyed a positive vision for the future, and affirmed their current place and position within the market and with facts in support.

I have to say that I’m increasingly approving of the management style of both Geoff Babidge and Peter Nathan.

ATM are already a growing NZ success story, something for other local companies to aspire to I say.

[gv1]

You know, ………. at a time when one of their A1 competitors has botulism and sat on the matter putting the entire industry at risk, ATM could well have just put an announcement into the market saying, not our problem, wasn’t our factory, we’ll be right mate.

But instead they chose to be bold, engaged directly with the media, conveyed a positive vision for the future, and affirmed their current place and position within the market and with facts in support.

I have to say that I’m increasingly approving of the management style of both Geoff Babidge and Peter Nathan.

ATM are already a growing NZ success story, something for other local companies to aspire to I say.

Yes, I agree with you. This co to watch for.

[janner]

Nice little trade, in at $5.85 out at $6.17 (AU$) - not a bad return for 2 days of no work

Of course you are correct on that one KW.. Mine is long term..

[JohnnyTheHorse]

68 cent resistance has been broken, so a potential trade could be on the cards. Only a few weeks until a results update too. Will be watching closely over the next few days.

Disc: Not currently holding, sold out at previous peak.

[MAC]

This article on the Perich Family’s success in Freedom Foods and A2 Corp seems to be a fair commentary on ATM’s present position. The bottom line for me though is articulated well as below which summarises simply and succinctly why this company has such long term value as an investment within global markets.

“A2’s success goes some way to show the importance of differentiation in a market crowded by similar products. While generic branded fresh milk at the big supermarkets sells for as little as $2 for a two-litre bottle, A2 sells for $5 for a two-litre bottle”.

http://www.brw.com.au/p/business/ton...1CQRIhfhFNqaML

[Joshuatree]

"the business has identified a product which has substantial potential" Geoff Babbage. How long ago was that and why havnt they proved it has benefits?

"There is NO evidence to suggest that A2 milk has any additional benefits to health than other types of milk" says Eithne cahill, a nutritionist for Dairy Australia.

Maybe its that that took if off my watch list. More fool me , so far ; seems its the Marketing which is making the diff?