The a2 Milk Company is making pleasing progress in the United States. Awareness for the a2 Milk™ brand is building, there is a growing rate of sale and the Company is expanding its footprint region-by-region.
Distribution is building within core regions and selected national accounts with stores now totalling ~3,600 across the country – a growth of 600 stores in 4 months to October 2017.
Brand presence and range is also growing within the strategically important Natural retailers with a2 Milk™ now ranged in 7 out of 11 Whole Foods regions nationally and the range expanding within the Sprouts chain nationally.
Sales velocity in key accounts is now approaching or exceeding 30 units per store per week as at 4 months ending October 2017 in line with expectations. The recent launch into Publix stores in the South East region has been well backed by both earned media and the “Love Milk Again” advertising campaign leading to further retail accounts in the region ranging the brand.
The Company is now investigating specific new product opportunities for the US market to further capitalise on the growing brand awareness.
The brand has benefited from increased media exposure; view an example of this press coverage with this news item from “CBS This Morning” national TV news which featured a2 Milk™ in October.
Given the achievement of KPIs (sales velocity and brand awareness) in California and the South East, plans are progressing for further expansion in an additional region during 2H18. The FY18 Company outlook assumes increased marketing expenditure in 2H18 in support of this expansion.