New Zealand dairy group A2 Corp. has signalled it plans to enter the US market through the establishment of a local subsidiary.

The company said a US launch had been “under consideration” for “some time”. With sales in the UK now growing from a small base, A2’s board said it believed pushing ahead with a US roll out was now a “priority”.

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A2 makes milk from cows that produce the A2 beta casein protein rather than A1. The product is targeted at lactose-intolerant consumers. The company said its “strong intellectual property rights and know-how” leave it well-positioned to grow in the country.

“The plan would involve the company establishing its activities through a wholly owned USA subsidiary and recruiting a small management team with in-market experience. As part of the development, A2 brand milk will be showcased at a major natural foods exhibition to be held in California in March.”

A2 did not provide a time frame for its planned expansion in the US. However, delivering the company’s first-half results, MD Geoffrey Babidge said: “Our confidence in the development of the group over recent times has enabled the company to advance North America as the next priority growth initiative.”

The company said it saw sales in the half-year to the end of December surge 22% to NZ$54m (US$45.1m), with growing market share in Australia and improved sales trends in the UK. The company also started selling infant formula in China during the period.

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EBITDA sank to NZ$2.5m, down from NZ$3.4m in the comparable period of last year. Earnings were down due to higher investments, as the company stepped up marketing and expanded into new geographies.

However, A2’s net income was up from NZ$554,000 a year earlier to NZ$643,000.

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