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The a2 Milk Company Limited (a2MC) and China State Farm Holdings Shanghai (CSF) have agreed to make changes to the supply and distribution arrangements for a2Platinum® infant formula sold in China.

Under the revised arrangements, CSF will become the exclusive import agent for a2Platinum® infant formula into mainland China and provide government relations advice and support on an on-going basis. a2MC will assume responsibility for distribution of infant formula products within the market and will progressively establish new distribution arrangements to expand the network currently in place.  a2MC will continue to oversee the marketing and communication activities for the brand as is presently the case.

The revised arrangements take into account the current commercial objectives of both a2MC and CSF and provide an improved model for both parties in the new regulatory environment to support the development of the infant formula business in China.

a2MC is confident that the original market entry plan for infant formula into China can be attained and significant further growth achieved as a result of these changes. a2MC is also confident other a2 Milk™ products have considerable potential in China and other Asian markets as well.

 

For further information contact:

Geoffrey Babidge Managing Director The a2 Milk Company Limited +61 2 9697 7000