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 14.1%1 revenue growth and maintained 11.3% market share2.
a2 Milk™ continues to be the only fresh milk brand ranged in all major supermarket chains, maintaining very high brand awareness and loyalty which benefits the portfolio as a whole.
We have also recently entered into an arrangement to underwrite the expansion of the manufacturing facilities of our long-term fresh milk supply chain partner in Victoria, Kyvalley Dairy Group (“Kyvalley”), to support the ongoing growth of our liquid milk business.
a2 Platinum® infant nutrition revenue grew 14.1% 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.
The a2 Milk Company have licensed the a2 Milk™ brand to Fonterra in New Zealand, and a2 Milk™ fresh milk became available in stores from July FY19.
1 All figures are in New Zealand Dollars (NZ$) unless otherwise stated
2 Aztec Australian Grocery Weighted Scan
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 ~19,100 Mother and Baby stores in China or on domestic e-commerce sites.
We delivered a2 Platinum® English label infant nutrition sales of $341.1 million, up 40.3% and reached a CBEC value share for the financial year of 21.7%, up from 20.6% at HY20 and up from 18.6% at FY193.
We achieved sales of $337.7 million for a2 至初® China label infant nutrition, which was over 100% growth on PCP and 62.7% growth for the half. Our MBS value share was 2.0% compared to 1.7% at HY20, up from 1.3% at FY194.
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.
3Source: Smartpath CBEC – 12-month market value share
4 Source: Nielsen MBS – 12-month market value share
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.
In FY20 we experienced growth of 91.2% compared to the prior corresponding period with brand awareness more than doubling, and conversion rates up significantly. Encouragingly, over 50% of our sales growth was driven from existing stores.
Distribution grew to approximately 20.3k stores, from 17.5k stores at the end of December 2019 and 13.1k stores as at end of FY19.
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.
In March 2020 we entered into an exclusive licensing agreement with Agrifoods International Cooperative Ltd for the production, distribution, sales and marketing of a2 Milk™ branded liquid milk for the Canadian market.
We continue to selectively explore new market opportunities. The focus continues to be milk powder products in Vietnam, infant formula & liquid milk in Korea with our partner YuhanCARE and testing a fresh milk presence in Singapore.