a2 Milk shares surge after a new infant formula deal with Synlait | eDairy News

a2 Milk shares surge after a new infant formula deal with Synlait

A short time ago, they were up 4.7% to $10.86. a2 Milk was the ASX’s best performing stock in 2017-18 with an annual gain of 179.79%.

Synlait Milk was up 1.7% to $10.580.

The a2 Milk Company announced a two-year extension to the a2 Platinum infant formula supply agreement, effectively creating a new minimum term of five years to July 2023.

The deal also increases the volume of infant formula products as demand for a2 Platinum infant formula continues to grow in China and in Asia.

“The success of the a2 Platinum product has exceeded all expectations over the past two years,” says a2 Milk CEO John Penno.

“This step is about bringing Synlait and the a2 Milk Company closer together in anticipation of continued growth.”

The company in February posted a 150% jump in profit to $98.5 million for the first half.

The company also announced earlier this year a new strategic relationship with New Zealand’s Fonterra Co-operative Group Limited to ensure future supplies of milk.

The deal links Fonterra’s global milk pool and supply chain, manufacturing capability and in-market sales and distribution capacity with a2’s brand strength and capabilities.

By: Chris Pash

Source: Business Insider

Link: https://www.businessinsider.com.au/a2-milk-infant-formula-synlait-2018-7

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