Blog: A2C hints at more international moves after Wiseman deal

Katie Smith | 15 November 2011

New Zealand dairy firm A2 Corp. (A2C) is eyeing further international expansion following its deal with UK dairy supplier Robert Wiseman Dairies.

Yesterday (14 November), the milk firms announced the formation of a joint venture that aims to develop A2 milk products for the UK market. Expected to go on sale next summer, the products will be aimed at people who find milk hard to digest or have self-diagnosed as having an intolerance to milk.

A2 milk comes from cows which naturally produce the A2 type of beta-casein protein rather than the A1, which can cause digestion problems.

A2C managing director Geoffrey Babidge said the venture will enable the company to gain a "niche" position in at least one global milk market.

"In addition, it provides a clear demonstration of the building credibility of the A2 proposition and could be expected to provide further momentum for the company in other international markets," he said.

A2C predicts A2 milk products in the UK will present a market opportunity three-fold that of Australia, where the company merged with ASX-listed Freedom Nutritional Products in May last year. In July, the New Zealand dairy firm started the construction of a processing facility in Sydney to meet growing demand for its products in the country.

The question is, where next for the New Zealand dairy firm?