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- Release Date: 19/11/13 15:08
- Summary: GENERAL: ATM: A2 Corporation accelerates UK market development
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ATM
19/11/2013 13:08
GENERAL
REL: 1308 HRS A2 Corporation Limited
GENERAL: ATM: A2 Corporation accelerates UK market development
19 November 2013
A2 Corporation accelerates UK market development
A2 Corporation (A2C) will accelerate investment in the United Kingdom to take
advantage of the significant opportunity for a2 branded milk products there
and in Europe.
To provide for the increase in market activity A2C and Muller Wiseman Dairies
(MWD) have agreed to a change in structure of the A2 Milk (UK) joint venture.
The marketing and sales of a2(TM) fresh milk products will be assumed by A2C
and MWD will continue to procure, process and distribute a2(TM)milk, but on a
cost plus basis to A2C.
A2C Managing Director Geoff Babidge says that recent events have created the
opportunity to evolve the commercial relationship with MWD to best align with
the current strategic priorities of each party.
"We have built a strong relationship with MWD through which both companies
see benefits in extending the initial arrangements agreed with Robert Wiseman
Dairies in 2011.
"The change in structure will enable A2C to move in a more focused way on
building sales of a2(TM) fresh milk in the UK whilst leveraging the scale and
operational capabilities of MWD. Initial consumer reaction to the a2(TM)
proposition has been favourable and confirms our view that a viable premium
niche position can be created for a2(TM) branded dairy products".
The new arrangement will take effect from 1 January 2014 and will provide for
the on-going supply of a2(TM) fresh milk products to existing retail outlets
across the UK. A2C will acquire MWD's shareholding interest in A2 Milk (UK)
for a nominal amount and MWD will supply product to the company on a cost
plus basis. Milk supply from local a2(TM)milk accredited suppliers of MWD
will continue unchanged.
Consequential changes to the UK board of directors will see the appointment
of William (Billy) Keane, the former Managing Director of Robert Wiseman
Dairies and current Chairman of Dairy UK as a second Non-Executive Director.
David Hearn, a highly experienced former FMCG executive and director will
continue as Non- executive Chairman and Geoff Babidge as Chief Executive
Officer of A2C will be the third Director.
As a result of these changes, the UK business has appointed a senior sales
executive with seasoned experience in the UK grocery trade as an additional
resource and the A2C Chief Marketing Officer will oversee future marketing
strategy.
Geoffrey Babidge
Managing Director
A2 Corporation Limited
+61 2 96977008
About A2 Corporation Limited
A2C is a differentiated, premium-priced dairy company which is building a
global business based on unique intellectual property relating to a2(TM)
brand dairy products.
A2C has operations in Australia, New Zealand, the UK and China and is
pursuing growth opportunities in Asia, North America & Europe. A2C is listed
on the NZX market and trades under the code ATM.
End CA:00244005 For:ATM Type:GENERAL Time:2013-11-19 13:08:22
