CHINA: NZ firm A2 launches infant formula

By Katy Askew | 1 May 2013

A2 prepares to ship infant formula to China

A2 prepares to ship infant formula to China

New Zealand dairy group A2 Corporation has announed that it is expanding in China with the launch of a2 Platinum infant formula in the market.

The first shipments are due to leave the group's Aukland packaging facility ship to China this month, the company said. A2 will then begin distribution in Australasia "soon after", the alternative milk manufacturer added.

The move to expand in the Chinese market, initially announced last October, will see A2 roll out its infant formula in Beijing, Shanghai, Guangzhou, Tianjin and Chongqing before progressively expanding to further major cities plus Hong Kong and Macau.

The company hopes to cash in on the massive demand for premium, foreign made infant formula in China, under suply of which has prompted a sharp rise in infant formula prices in the market.

For just-food's analysis of the massive swelling in demand for international infant formula click here, or for some perspectives on the issue from leading infant manufacturer Danone click here.

Show the press release

 

A2® PLATINUMTM TO MEET DEMAND FOR PREMIUM INFANT FORMULA

New Zealand listed dairy company A2 Corporation (NZX:ATM) is ready to tap into the lucrative international demand for New Zealand  made infant formula with the launch of its unique a2® PlatinumTMinfant formula.  The launch is consistent with the Company Strategy announced in October 2012.
Packaging of a2® PlatinumTM infant formula has commenced in Auckland with the first shipment for China due to leave next month followed by distribution to supermarkets in Australasia soon after.
A2 Corporation Managing Director Geoffrey Babidge said: "a2® brand products, based on the unique portfolio of intellectual property the Company holds, are responding directly to the increasing global focus on digestive health, allergies and intolerances".
"Infants in Australasia and China will be the first to enjoy a2® PlatinumTM infant formula which contains only the A2 form of the beta-casein protein, which is more comparable to the protein that mothers naturally produce than to other beta-casein types linked to a range of potentially adverse health conditions."
"Mothers can be assured that a2® PlatinumTM infant formula is being produced to the highest standards  from a2® certified cows in Canterbury with the a2 milk TM being processed on behalf of A2 Corporation by Synlait Milk Limited whose quality assurance processes are amongst the highest in the industry."
"The security of the supply chain in China will be overseen by China State Farms Holding Company Shanghai ("CSF"), our distributor of a2® PlatinumTM infant formula in Greater China."
a2® PlatinumTM infant formula is being packaged by New Milk Limited in Auckland. The first packaging run was marked on Saturday April 20, 2013 by a ceremony where National Party President Peter Goodfellow, CSF Chairman Xu Jun and senior executives of CSF were guests of A2 Corporation.
The planned roll-out in China will initially include Beijing, Shanghai, Guangzhou, Tianjin and Chongqing before progressively expanding to further major cities plus Hong Kong and Macau.
The marketing of a2® PlatinumTM infant formula in China is being overseen by a joint committee of A2 Corporation and CSF chaired by the A2 Corporation CEO.  Joint funding of US$3.0 million has initially been committed with additional contributions being made based on a proportion of sales.
a2® PlatinumTM infant formula adds to the range a2® fresh milk products already enjoyed by consumers with a focus on health and well-being in Australia, New Zealand and more recently the United Kingdom.

 

Original source: A2 Corporation

Sectors: Baby food, Dairy, Emerging markets

Companies: Danone

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