A2 mik not affected by botulism scare

A2 managing director Geoff Babidge told Dairy News they will not be directly affected by the Fonterra scare and the launch is going ahead as planned – with their infant formula brand A2 Platinum on shelves in China in November. It is also being launched in Australia and New Zealand, and should start appearing on shelves here in early to mid-October.

“Obviously anyone in the industry should be concerned about potential impact on brand New Zealand,” says Babidge. “But we have been satisfied with how all parties have reacted – the company and the Government – in addressing the matter.”

A2 had its people in China immediately following the announcement of the quality issue. “There has been a lot of communication and a responsible position taken by the various parties. We are of the view that it will mitigate any on-going issues relating to the matter. We are not forecasting any change to their current plans because of the issue.”

The first A2 Platinum left New Zealand in June and is completing the processes through Chinese authorities and working its way through the supply chain.

A2 Corporation appointed State Farm Holding Shanghai Company (CSF) in late 2012 as the exclusive distributor of A2 infant formula in Greater China with a joint marketing structure. A marketing committee is comprised of A2 and CSF representatives, with Babidge as chair.

 A2 has a strategic supply agreement with Synlait Milk, with 12 accredited farmers in Canterbury supplying A2 milk for infant formula. Support for A2 milk in Canterbury is strong and building, says Babidge, with more farmers wanting to sign up. 

The company has established a new management team with experience in infant formula marketing, quality processes and supply chain and appointed an in-market manager located in Shanghai. This team will also develop further growth opportunities such as UHT milk and, in time, infant formula products in other Asian markets.  “We are putting some new effort into identifying opportunities particularly for UHT and subsequently yoghurt. We see UHT as being very complementary in taking infant formula into China,” says Babidge.

In New Zealand A2 Platinum will be launched nationally. They are looking to broaden an initial arrangement with Foodstuffs.

For fresh milk in New Zealand, Babidge says they are continuing discussions through the year with the non-exclusive licensee for fresh milk in New Zealand – Fresha Valley. “We are continuing our discussions on whether there is a way for us to get more involved and participate with them in the sale of fresh milk in New Zealand.”