No slowdown in China after Nestlé launch, a2 Milk insists

By Jim Cornall

- Last updated on GMT

The a2 Milk Company said it considers it is uniquely positioned to benefit from expansion of the A2 category. Pic: ©Getty Images/DenizA
The a2 Milk Company said it considers it is uniquely positioned to benefit from expansion of the A2 category. Pic: ©Getty Images/DenizA
The a2 Milk Company in New Zealand has responded to recent media coverage after Nestlé launched an a2 infant milk formula product in China.

The company said it “continues to perform strongly in each of its key markets and in particular has not seen any change in the growth of its China business.”

The launch led to a dip in share prices on New Zealand’s stock exchange, however prices have since rallied, and the company’s shares still remain 316% higher than a year ago.

The company said it has previously advised that it expected broader interest in the A1 protein-free category, noting that milk containing only A2 protein is easier to digest.

‘Uniquely positioned’

The a2 Milk Company said it considers it is uniquely positioned to benefit from expansion of the category over time, as it already has a strong brand based on contemporary values with unique channel-to-market strategies.

It added it has enhanced consumer credibility as the creator and pioneer of A1 protein free, and pointed to its ongoing investment in R&D as the global leader and innovator of A1 protein free products.

The company has a comprehensive suite of intellectual property including patents, trademarks, proprietary processes and know-how, it also noted.

The a2 Milk Company said as it is the only company that deals exclusively with A2 milk, those new to the market would need to explain their traditional range of products continues to include A1.

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