Media Updates, page-2618

What a excellent find @JBinvest, great to see the reasoning why this stock is 75% held by the Institutions. Very detailed analysts insights into why they bought in and the reasons they are holding and what they see the future holds. Very telling that they say the company is at the crossroads of a big opportunity with tailwinds on their side to grow into something much bigger than their current $10B market cap.

The last excerpt is mandatory reading for recent and LTH alike, those that sold out and are looking for a better reentry would be wise to read the article in its entirety as well. You may well be able to buy in cheaper in the short term but things are looking very rosy for A2M from from this instos viewpoint that with all the other Institutions are holding a combined $7.5 billion of A2 Milk Co shares.



Think about how foundational of a product this is. Milk is consumed in so many places. It is in so many different products. We think that the company also has a chance to expand globally and expand into new product categories. In China they are going to introduce a fortified,
nutritional milk powder for children aged 4-12, a follow-on from the infant formula. In the U.S.they are commercializing this fresh milk business.

U.S.fresh milk is a $15 billion-dollar market; it is 10X the size of Australia’s and they are growing. They are doubling year on year in the U.S., they are in Kroger nationwide, they are in Costco, they are in Wal-Mart, and Whole Foods (just a reminder!). They are going to introduce a dairy coffee creamer very soon here and we think there will be other offshoots from the product over time.JOHN HARRIS:To add to your question about the moat, it’s a consumer brand. With consumer brands, often it matters more what’s on the outside of the package than what’s on the inside of the package.

Mayonnaise is mayonnaise is mayonnaise, Greek yogurt is Greek yogurt is Greek yogurt, ketchup is ketchup is ketchup. But Heinz is Heinz, Hellmann’s is Hellmann’s and Fage is Fage,even though there are 10 different kinds of Greek yogurt.a2 Milk has built a brand, and it helps that they were first to the category.

Not only have they built a brand, but they built a brand that is sitting at the intersection of some powerful tailwinds,in that there has never been a better time to build a challenger brand.

There has never been less trust in big, established brands. And if you are going to build a challenger brand, there has never been a better time to build one that is wrapped in a message of health and wellness. So they’re in a very good place,and they got there first.

They built a brand,and a lot of our work on this was around whether we think that this is a team that can continue to build, burnish and enhance that brand and build the Hellmann’s or the Heinz or the Chobani of A2 milk. If they do that, to Will’s point, it could be a big business