Not being argumentative, I'm looking for both sides of the story and welcome discussion. I'm not one-eyed. The environment is changing.
My research of daigou and JD shows a2m is adapting and I am quietly confident we will get some good news come reporting time. I'm always looking for the other side of the coin when my own money is on the line, so I don't need to defend myself from accusations of being a down-ramper or a shorter.
Regarding China Mwngniu, I note that China has become the most trusted source of infant milk formula in the eyes of domestic consumers, and Chinese parents prefer to buy from brands that resonate; consumer surveys from our very own a2 Milk Company have revealed, as per the link above.
If we are talking about Australian consumers and a2 products on our shelves, IMO the a2 protein is the same from one brand to the next, so if I desire a2 and believe in the science - then I am going to buy it where it is available, and if I can't find my preferred brand, I'll go to the next company offering a2. When I go to the pharmacist, I'm taking generic, just like a generic vs brand name. The science is the same.
BAL Beta Genica-8 labels read - "New Zealand is the primary source of our A2 organic milk. We strive to source the best Australian and New Zealand ingredients, but this is not always possible due to seasonality and the rarity of organic ingredients."
Regarding BAL and your points regarding traceability, I can't see China being worried about an a2 product sourced from Australia or New Zealand. Traceability began as a concern when considering counterfeit products. If the country of origin is an issue, are you going to worry about ingredients sourced from Australia and New Zealand? People are willing to pay for a high-quality brand, and a2m has done a great job marketing itself as the leader. Back to Australian shelves - when you cant get a2m? What then?
You know the benefits of the a2-only protein, and your kid is at home hungry, and while BAL isn't as popular as a2m, A2M cant put the product on our shelves consistently, so you need to source another product for that hungry child.
If the kid needs a2, you can go to BAL or BUB. a2m isn't the only a2 product available anymore.
a2m holds high regard in the Chinese market; I won't argue that and this is why I haven't sold a share since 2015. I think this will level out, and a2m will continue to lead the market - if they manage themselves correctly.
It's a2m's game to lose.
I am concerned we don't have the highest quality product right now. They might announce a premium version of Platinum.
Shelves are bare because of the clearout of the old label, which you, I, and others have given evidence for.
If things stay the same, without innovating the brand itself, everyone else will catch up, and a2m will lose ground to other a2 formula options. People might not switch but what if they don't have a choice?
For the moment a2m is a leader, but past performance is indicative of future performance. Consumers are fickle.
A2M Price at posting:
$4.15 Sentiment: None Disclosure: Held
(20min delay)