A2 to launch powdered milk products in China

The a2 Milk Company will launch new product lines in the booming milk powder space to capitalise on soaring demand for its products in China as its share price climbs to record levels.

In the coming weeks a2 will roll out a new adult skim milk powder product for sale in Australia and through cross border e-commerce channels into China.

A2 currently only offers a whole milk powder product and Australia and New Zealand chief executive Peter Nathan said the milk powder segment was set to become a significant opportunity for the company.

“We are of the view that bringing the benefits of a2 Milk to Chinese consumers is strategically far easier using the powder form than the fresh milk form. It is far more in tune with logistics and consumer dynamics,’’ Mr Nathan said.

“One big benefit is transportation, milk powder is far more transportable via the diagou and CBE paths. Quite often Chinese consumers also prefer the taste of powdered milk as opposed to fresh milk.’’

A2 last week upgraded its annual revenue forecasts due to soaring demand for its infant formula products in China.

It is now set to launch a variation of its flagship a2 Platinum infant formula product that will be pitched at children up to six rather just babies in the first quarter of the 2018 financial year. “This will meet the growing market demand for products for younger children. We have experienced significant growth already in this market segment. And the brand proposition resonates very well with older children as well as infants and babies.’’


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