ATM - A2 Milk Corporation Limited

[Golfer01]

Some of these issues have been pretty thoroughly explained on this forum several times in the past. So just briefly:

Yes Fresha Valley got a licence over ten years ago, and it will expire next year. ATM says it won't be renewed. ATM has plans to become active in NZ at that point. But we have no details.

Fresha Valley's licence agreement said nothing about who would do the publicity and advertising, so no one did it. In my view it's largely a2MC's fault that no one in NZ knows where to find A2 milk and public information about A2 milk is non-existent here. a2MC's head office is officially in Auckland, but actually the head office staff are all in Sydney.

Fresha Valley is a major milk supplier to the Countdown chain in the Auckland region and has a very close tie-up with Countdown. Fresha's boss has said he will make sure any Countdown branch that asks for A2 will get it - just tell the local store manager you want it stocked. But if you do that, make sure you buy some.

Re the use-by date: Fresha Valley a2 has quite a long use-by time and personally I usually chuck out any that's left after about a week, as I do with any other milk. But as with ANY milk, if you leave it out on the kitchen bench receiving daylight, it will go off very quickly. We've had no problems if you just keep it in the fridge (to exclude UV light more than for temperature reasons). It lasts well over a week.

New World in Thorndon is one of the few non-Countdown supermarkets that stocks A2 milk, but it's been charging a dollar more than the Countdown price per bottle. I also found A2 stocked in New World in Porirua a year or so ago. All the Countdown stores in the Wellington region are usually well stocked with Fresha's A2. Some, like our closest ones in Crofton Downs and Karori, where customers are probably better informed than in some other suburbs, have up to four rows on the shelves, well displayed since some of us put pressure on the store managers a couple of years ago.

But Fresha ships its A2 milk in sealed lightproof cartons rather than open crates. These are kept out in the coldstore room and are a bit of a hassle for staff to tear open to reload the shelves. Not like other brands which are in spare crates out under the shelves ready to reload the shelves. I heard they might change this system. There's rapid turnover of A2 on the shelves, so occasionally you have to ask the staff to re-load the shelf.

The story about cash-strapped farmers being unable to find buyers for their unwanted cows struck me as pretty interesting too, so I emailed it to the company just to be sure they were aware of it.

Many thanks NT001. It gives me a much better understanding of the situation in NZ. In reality the fresh milk side in NZ for A2 is low priority. One would think that several thousand litres of fresh milk sold daily/weekly in NZ is insignificant (revenue wise) compared to hundreds of thousands of infant formula cans to Ozzie, Hong Kong and China. The marketing focus and product exposure for fresh milk is being concentrated in USA and the UK which is where the volume sales need to be. I'm off to the UK in several weeks time and then the US (CA) in a few months so I'm going to see how readily available the product is.

[Gunny]

Thanks for your post NT001. I followed up with New World Thorndon this morning. They get a delivery every Wednesday so should be in later today but as you say is more expensive there.

Having said that this branch is generally more expensive even than their other branches. For example a whole pineapple is about $5.50 there and a $1 cheaper at Porirua. Location location location it seems.

Gunny

[Golfer01]

Having said that this branch is generally more expensive even than their other branches. For example a whole pineapple is about $5.50 there and a $1 cheaper at Porirua. Location location location it seems.

Gunny[/QUOTE]

More like demographic, demographic, demographic.

[winner69]

Demographics gunny - Thorndon (and catchment area) full of rich dudes who don't mind paying more

That's right eh golfer (who made same comment)

[Golfer01]

Not me the lucky one, whoever did good on them.

On other note, falling NZD v AUD is good for their revenue as the financial statements are reported in NZD and their actual sales are in AUD, win-win situation, sweet!!!

FYI - their infant formula is sold in NZD to Australia. Effectively no gain or loss, which I believe is a good thing. Asian sales are in USD so exposure to +/- on this business.

[sb9]

Very strange to see such a low turnover day in months...

[Golfer01]

Very strange to see such a low turnover day in months...

You read my mind!!

[macduffy]

Very strange to see such a low turnover day in months...

Perhaps the excitement (hype?) around ATM is abating - until the next announcement.

[sb9]

Perhaps the excitement (hype?) around ATM is abating - until the next announcement.

Don't think so, my comments were more in light of its admission into ASX300 from Monday or COB today.

[airedale]

I am just back from 10 days in Tasmania. I noticed that many many coffee shops are using a2 milk. It just seemed like main stream and readily accepted product. That café owner in Lyttelton who doesn't do trim milk should get on to a2 milk. You can definitely taste the flavour in coffee.