A2 Corporation (A2C) will accelerate investment in the United Kingdom to take advantage of the significant opportunity for a2 branded milk products there and in Europe.
To provide for the increase in market activity A2C and Müller Wiseman Dairies (MWD) have agreed to a change in structure of the A2 Milk (UK) joint venture. The marketing and sales of a2™ fresh milk products will be assumed by A2C and MWD will continue to procure, process and distribute a2™milk, but on a cost plus basis to A2C.
A2C Managing Director Geoff Babidge says that recent events have created the opportunity to evolve the commercial relationship with MWD to best align with the current strategic priorities of each party.
“We have built a strong relationship with MWD through which both companies see benefits in extending the initial arrangements agreed with Robert Wiseman Dairies in 2011.
“The change in structure will enable A2C to move in a more focused way on building sales of a2™ fresh milk in the UK whilst leveraging the scale and operational capabilities of MWD. Initial consumer reaction to the a2™ proposition has been favourable and confirms our view that a viable premium niche position can be created for a2™ branded dairy products”.
The new arrangement will take effect from 1 January 2014 and will provide for the on-going supply of a2™ fresh milk products to existing retail outlets across the UK. A2C will acquire MWD’s shareholding interest in A2 Milk (UK) for a nominal amount and MWD will supply product to the company on a cost plus basis. Milk supply from local a2™ milk accredited suppliers of MWD will continue unchanged.
Consequential changes to the UK board of directors will see the appointment of William (Billy) Keane, the former Managing Director of Robert Wiseman Dairies and current Chairman of Dairy UK as a second Non-Executive Director. David Hearn, a highly experienced former FMCG executive and director will continue as Non- executive Chairman and Geoff Babidge as Chief Executive Officer of A2C will be the third Director.
As a result of these changes, the UK business has appointed a senior sales executive with seasoned experience in the UK grocery trade as an additional resource and the A2C Chief Marketing Officer will oversee future marketing strategy.
A2 Corporation Limited
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