Despite Australia’s large and mature milk market, we have achieved significant success here. In fact, a2 Milk™ is the leading premium fresh milk brand in Australian supermarkets, with a grocery value market share of approximately 9.3%*.
a2 Platinum® continues to be the fastest growing infant formula brand for the latest year, with market share increasing from ~16% to ~26%**.
The continued growth in both fresh milk and infant formula sales reflects increasing consumer awareness and loyalty driven by consistent brand advertising and growing media coverage of The a2 Milk Company™ brand. The business once again increased its marketing investment, resulting in the largest media spend of any brand in both the fresh milk and infant formula categories in Australia.
Sales of a2 Milk™ branded whole milk powder increased strongly and a2 Milk™ branded skim milk powder was launched in May 2017.
a2 Milk™ is the only milk brand distributed through all six key grocery retailers in the Australian market.
*Australian Grocery Weighted Scan, 30/06/17, MAT
** Australian Grocery & Pharmacy Scan, 30/06/17, MAT
The a2 Milk Company exports a2 Platinum® infant formula to China from New Zealand.
We have built strong and close commercial partnerships with our manufacturing partner, infant formula expert Synlait Milk, as well as our growing distributor network.
Our ANZ label product is in high demand and selling through cross-border e-commerce channels like Tmall Global and JD Worldwide amongst a number of other strategic e-commerce partners. Our Chinese label infant formula range (also manufactured in New Zealand), is ranged ~3,800 mother-baby stores in more than 50 cities.
Our premium infant formula range has gained a loyal following amongst many Chinese mothers and local health care professionals.
We began exporting a2 Milk™ branded fresh milk into China in 2014.
In 2015 the a2 Milk™ brand was launched in the United States of America, where our strong intellectual property rights, know-how and consumer research suggests we will be very successful.
A new chocolate flavoured product was added during the year and launched at the Natural Products Expo West – one of the largest retail events of its kind in the US.
At 30 June 2017, the Company had distribution in approximately 3,000 stores across the US.
The a2 Milk Company in the UK is focused on providing a positive, premium brand to the (approximately) one in five British consumers who have issues digesting regular milk, yet are not medically diagnosed as lactose intolerant.
The UK business returned its first annual operating profit, assisted by strong growth in a2 Milk™ branded fresh milk sales and a contribution from infant formula sales.
Strong commercial relationships have been established with many local British farmers, and we continue to work closely with Müller Wiseman Dairies, our local milk processing partners in the UK.
a2 Platinum® infant formula continued to be sold in the wholesale market, having been introduced during the 2016 financial year.