THE A2 MILK COMPANY
THE A2 MILK COMPANY
Feel the difference
T
here are many commodities that consumers take for granted. The low-level emotional attachment with such items means that little thought goes into the decision making of everyday purchases as we hurry through our busy lives. If a product is deemed to be largely interchangeable with commodities of the same type, it’s extremely difficult to differentiate and build a successful brand. For many of us, basic products such as milk fall into this category. That is until a2 milk entered the market. A DIGESTION DISCOVERY The a2 Milk company was founded in New Zealand by Dr. Corran McLachlan in 2000 after a scientific discovery while studying at Cambridge University. Corran learned that proteins in milk affect people differently, forming the scientific basis of the significant difference that enables a2 Milk to succeed. Corran learned that ordinary cows produce milk with different beta-casin proteins type, called A1 and A2. Most cows’ milk available in the market contains a mix of these A1 and A2 proteins. He then discovered there was a safe and simple way to identify cows who produced milk that was naturally A1 protein free. This enabled the company to handpick cows that naturally only produce the A2 protein. From there the a2 Milk company was born. Over the years, research continued to demonstrate that many people who have digestive discomfort when drinking
ordinary cows’ milk, find that A2 Milk is easier on digestion. Purely because A2 Milk only contains the A2 protein and no A1. This discovery was so significant that it changed lives, enabling people who had not been drinking milk for years, to enjoy it again. Almost 20 years later, the a2 Milk company mission remains the same: to pioneer the scientific understanding of the A2 protein type so more people can enjoy the nutritional goodness that only comes from real and natural milk. Today, the a2 Milk company has
products and trading activities in Australia, New Zealand, China, the US, the UK and emerging markets in Asia. MILK-SHAKING THE MARKET UP IN AUSTRALIA It is in Australia that Milk2 is going from strength to strength with an enviable set of results published at the end of 2018. Whilst it continues to gain momentum in other markets, A2 Milk is really shaking the market up in Australia. Most recently, the brand claimed the title of fastest growing major liquid milk brand in
Australian supermarkets. It also remains the leading premium milk brand and the only brand ranged in all major Australian supermarkets. a2 Milk company also recently reported record value market share of 10.8% and revenue growth of 11.7% in Australia alone. The company continued investing as well and was the No1 advertised brand in both milk and infant formula categories in Australia last year. The marketing campaigns paid off for the company too, in addition to its success in the traditional milk category, its A2 Platinum infant
formula delivered significant growth too. Claiming its position as the market brand leader in grocery, pharmacy and daigou channels, A2 Platinum infant formula recorded 35.7% value share as of 31 Dec 2018. Which was up from the already impressive 32% value share enjoyed at the end of FY18. Importantly, the a2 Milk company also works closely with its farmers, who are all long-term partners. It continues to pay a premium for the supply of A2 milk and has 28 certified A2 Milk dairy farms that produce pure and natural A2 Milk from specially selected cows across Australia. The recent NZ move will be one to
watch as the a2 Milk brand under licence to Fonterra was launched in New Zealand in early August 2018 with national advertising and distribution from late September 2018. Equally, its operations across China, USA and emerging markets in Asia will be interesting to follow as consumers across the globe relate to the problem Milk A2 are promising to resolve.
SHEPPARTON - MELBOURNE
DAILY
PROUD SUPPLIER TO A2 MILK
Three generations of refrigerated & general freight Melbourne to Shepparton daily. Also general freight to Albury, Cobram, Echuca, Kyabram, Moama, Mooroopna, Nurmurkah, Tatura, Wangaratta, Wodonga and Yarrawonga.
KEATING FREIGHT LINES PTY. LTD. 5829 9388 SHEPPARTON DEPOT 415 New Dookie Road, Lemnos / MELBOURNE DEPOT 38 Glenbarry Road, Campbellfield
Three generations of refrigerated & general freight
DIFFERENTIATING DISCOVERY The discovery of the difference it makes to drink milk containing only A2 protein has changed purchasing behaviour of milk drinkers across the world. This unique concept represents an outstanding opportunity based on scientific evidence and offered A2 Milk company a first mover advantage. Unlike many products where benefits are hard to prove, for those who previously struggled to digest some milk, a2 Milk company is enabling consumers to reintroduce milk to their diet and experience less discomfort. Consumer feedback has been fundamental to the growth of the
business, providing credibility to the product. Given the success this brand is having in Australia and the rate at which sensitivity to some food is being diagnosed as intolerances is growing across the globe, it is clear the a2 Milk company is going to be one to watch.
Performance by design With over 20 years experience in food and biosciences industries for clients around the world, we have the experience, skills and knowledge to deliver integrated solutions in process technology. Our clients include some of the world’s most demanding and sophisticated food and nutritionals processing companies including Fonterra in New Zealand, Australia, the United States and the United Kingdom, Glanbia in Ireland and the United States, South West Cheese and DairiConcepts in New Mexico USA, AB Mauri in China and New Zealand, Abbott in Ireland, Dale Farm and First Milk in the UK. Projects range from nutritional and infant formulae processes technology upgrades and installations to evaporating, drying, powder handling and specialty projects involving, milk, cheese, whey and yeast processing facilities. PDV Consultants have had significant experience in the development of processes and facilities for lactose (milk sugar) facilities for many of their clients. Our consulting engineers are experienced in all aspects of the design and construction of food production processes, utilities and supporting infrastructure. With offices in Europe and Australasia our team will be pleased to discuss your project at any time.
Level 3, Vero House, 127 Alexandra Street, PO Box 4455, Hamilton 3247, New Zealand P 64 (0) 7 838 3727 F 64 (0) 7 838 3009 E info@pdvconsultants.com
www.pdvconsultants.com
Oliver Moy Publisher
For enquiries email okm@aubusinesscoverage.com