Australia is a strong and well established market where we have had a continued strong focus since 2007.
a2 Milk™ is the leading premium fresh milk brand and available in all six major Australian supermarkets, with a grocery value market share of close to 10%1.
a2 Platinum® was launched late in 2013 and is now the leading Australian infant formula brand with 32% market share2.
The Company continued to invest strongly in its brands across FY18, with the highest national brand advertising spend in both the infant formula and fresh milk categories in the Australian market and strong editorial media coverage. The a2 Milk Company business continues to grow its market position with new products launched in FY18 including a2 Platinum® premium stage 4 junior milk drink, Premium a2 Milk™ powder blended with Mānuka honey and a2 Platinum® Premium Pregnancy milk formula (for women pre, during and post pregnancy).
1Aztec Australian Grocery Weighted Scan, 30/06/18, MAT
2Aztec Australian Grocery and Pharmacy Scan 30/06/18 MAT
The a2 Milk Company have licensed their a2 Milk™ brand to Fonterra to launch into fresh milk in New Zealand. a2 Milk™ became available in select stores in New Zealand from July FY19, and will become more widely available from October FY19.
The a2 Milk Company is building strong brand awareness and market position in China since its launch late in 2013 calendar year.
Chinese consumers are able to purchase either the Australasian a2 Platinum® products via cross border e-commerce platforms, or our unique Chinese a2™至初® infant formula products across ~10,000 Mother and Baby stores in China or on domestic e-commerce sites.
To date The a2 Milk Company has achieved 5.1%1 consumption value share within the sizeable infant formula market.
All our infant formula products are produced by our strategic supply partners Synlait Milk in New Zealand.
Chinese consumers are also able to purchase a2 Milk™ branded fresh milk that has been airfreighted directly from Australia and available to purchase in premium supermarkets and online.
1Kantar Infant Formula market tracking of Tier 1 and Key A cities for 12 months ending 30/06/18 by value (Kantar track a substantial proportion of the total market)
In 2015, the a2 Milk™ brand was launched in the United States of America. Since its launch, a2 Milk™ has experienced significant growth leveraging the Company’s unique consumer proposition of a real cows’ milk that is easier on digestion.
The brand has also received recognition as a leading milk innovation from highly regarded US press outlets including The Wall Street Journal, The Washington Post, CBS, and Forbes.
From January FY18, the Company has distribution of ~6,000 stores with particular focus in California, Southeast and Northeast regions across super markets and the natural channel (including Kroger, Publix, Safeway, Shoprite, Stop & Shop, Giant Landover, Giant Carlisle, Wegmans, Whole Foods, Sprouts and The Fresh Market) and more recently select stores in Costco and Walmart.
The a2 Milk Company entered the UK market in FY12.
Sales of a2 Milk™ branded fresh milk continue to increase from a small base through gains in distribution and in-store sales velocity.
The Company will transition between suppliers of its fresh milk product early in FY19 and move to a new carton packaging format.