Australia is our most well-established market where we have had a continued strong focus since 2007.
The Australian fresh milk business continues to strengthen with 10.7%1 revenue growth and a record 11.2% market share2, up from 9.8% for the same period a year ago.
a2 Milk™ was the fastest growing major fresh milk brand in Australian supermarkets and remains the leading premium milk brand and the only brand ranged in all major Australian supermarkets.
a2 Platinum® infant nutrition revenue grew 35.3% and remains the market brand leader in grocery and pharmacy channels.
We remain the highest brand advertiser within both the milk and infant formula categories, which continues to drive growth in brand awareness and consumer loyalty.
1 In constant currency
2 Aztec Australian Grocery Weighted Scan
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 stores across New Zealand from July 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 Australia and New Zealand a2 Platinum® products via cross border e-commerce platforms, or our unique Chinese a2™至初® infant formula products across ~16,400 Mother and Baby stores in China or on domestic e-commerce sites.
To date The a2 Milk Company has achieved 6.4%1 consumption value share within the sizeable infant formula market.
All our infant formula products are produced by our strategic supply partner Synlait Milk in New Zealand.
Chinese consumers are also able to purchase a2 Milk™ branded fresh milk and milk powder which are airfreighted directly from Australia and New Zealand and available to purchase in premium supermarkets and online.
The business is well positioned with strong ofﬂine and online distribution in place to beneﬁt from step-changing marketing investment, which is expected to build further brand awareness and trial within the Greater China market.
1 Kantar Infant Formula market tracking of Tier 1 and Key A, B, C and D cities for 12 months ending 14 July 2019 by value
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 and premium branded proposition.
By the end of the 2019 financial year, our distribution exceeded 13,100 stores. This 118% increase over prior year was driven by gaining national distribution within the Kroger supermarket chain, adding three new regions within Costco, the successful addition of Vons (Southern California) and other Albertson’s/Safeway divisions, and further Walmart distribution expansion.
Pleasingly, recent research data indicates the US brand development is progressing well. The a2 Milk™ brand is successfully growing category consumption, sourcing volume across multiple product segments and trading up consumers from conventional milk. The brand is also experiencing high levels of consumer loyalty.
The company remains confident of the opportunity for continued growth in the US given the high consumer propensity for premium wellness products and strong retailer support.
We continued to selectively explore new market opportunities. The focus continues to be milk powder products in Vietnam, testing a fresh milk presence in Singapore and Korea.