More than a few shareholders were worried about the foray into the USA.Dean Foods that has been around for 90 years and is a failing business. That was passed of as DF being old fashioned in the commodity milk business, A2 is in a different segment altogether, apparently. For me the fact they’ve given up on the uk milk business they’d been in since 2012 is not a good omen
So dean foods and Fonterra have got into some trouble at the same time as A2 and nestle etc are making money....Why, exactly as stated, they are both in commodity business which is ruled by lowest cost and can be sourced from anywhere. A2 and Aptimal etc is all about brands, and A2 is about difference, not about milk powder.
The fact they stopped selling in UK is a very good sign. After 6 years they realized the market just wasn't working the way that AU was and didn't need the IF that Asia did. Also Europeans do not seem to have the same tummy issues that Asia has so they pulled out. The fact they analysed it and made a decision is the exact opposite of Dean Foods who kept doing the same thing and hoping for a different result.
A2M Price at posting:
$13.34 Sentiment: Buy Disclosure: Held
(20min delay)