A2MILK popular with Chinese consumers., page-28

This has been a perennial problem, I’ve brought it up over the last couple of years. I think you’ll find they (A2M) are selling everything they can get their hands on atm. If a customer requests, they can keep some aside and deliver.

You’ll also find that their lowest margins occur when they sell wholesale to very large powerful Supermarket chains. I don’t think it bothers A2M Management too much that sales are being diverted overseas.

It is, however, not the best way to treat your customers back home in ANZ. Synlait (our supplier in ANZ and China) has recently expanded capacity and is investing significantly in a new manufacturing site. Not sure when it comes online.

In the mean time, I think it creates a lot of interest and desirability to get your hands on the premium/hard to get product for your average Chinese consumer. In Australia, many parents probably substitute. There are some cultural differences here but China is the main game imo.