Chart Update, page-18281

Before you rehearse your question, let me give you a few facts to chew over and afterwards you may answer your own question

1) A2’s market shares is rapidly increase while its European and American competitors are experiencing difficulty in China
Mead Johnson’s China label is canned in China with bulk from American and English Label is from Europe. And you see their EBITA % is only about 50 % of A2 at 12-13% and majority of the volumes are made in China ! No wonder RB wants to offload them.


2) The E.U has just cancelled the trade deal with China. EU IF / label’s dream of low tariff now dashed

3) Some batches of bulk powder for IF imported from EU tested Covid positive and negative sentiment towards product from Covid Epic centre EU remain very strong. Daigou in down Under was heavily impacted whereas Daigou from Europe has now collapsed. Mead Johnson’s European label usually goes through HK to China and they are encountering major inventory issue as customers are not buying the European product and not to mention HK has also more cases of Covid than combined cases in mainland. This also explains the increase in bulk volume order for SM1’s product.

4) About MVM’s owner China State Farm. Do you who they are? China State Farm is a gigantic , mega profit making , state owned company . The revenue of State Farm is somewhere $100b-200b Aud. It’s Shanghai subsidiary is the JV partner of A2. Before the spin off of business , State Farm used to be called “ Department of Agriculture” . Now you understand the scale and the network. That explains the rapid expansion of A2 in China. “ NZ IS ON CHINA’s GOOD BOOKS AND THE GOV IS USING STATE MACHINE TO HELP A2’s SALES IN CHINA” By allow A2 to buy into MVM , State Farm has invited A2 to do business in China TOGETHER”

Now you know why A2 is making inroads in China during Covid S while others are struggling. And you still think they’ll have a problem in China?