A2 Milk Company CEO on dairy disruption, page-6

Hi Beef,
Expansion in the US market looks to be gaining momentum as Jayne has indicated. I was thinking about what the overall medium to long term corporate strategy might be. Fresh liquid milk is the initial offering and consumption appears to be increasing quite well. Then what - IF - other dairy offerings???

I assumed a natural progression would be IF so out of curiosity I did a quick review of a couple of market research reports and abstracts about "infant formula consumption in the US". The research is quite interesting with lots of variation, depending on the firm reporting the results. A couple of takeaways:
-CAGR varied from 2.71% to 9.5% for the period 2016 - 2027 (one report had US demand dropping by approx. 20% between 2017-2020)
-organic brands are increasing in popularity
-the typical big names are driving the market - Danone, Fonterra, Kraft Heinz, Nestle, etc.

Nothing to see here, business as usual, move along. Two facts that stick out are the inclusion of Fonterra in the suppliers and the lack of any mention of the A2 proposition. Not surprising. The Fonterra story alone is typical of what I believe is happening in the US dairy industry - deny, deny, deny - then boom, join the party!

As I've posted in another thread, I really like this Monty Python clip of the "A2 Knight" charging the "dairy industry castle" - they see him coming but don't think much about it until its too late:


I personally don't think expansion into Canada is a high priority right now as the US market has so many expansion possibilities. Between now and December 31st is going to be very interesting for A2M both from a China sales events POV as well as new product introductions for the US. It will be very interesting to see the first HY 2019 report.

I'm not big on predicting future SP as no one really knows the future but my money is riding A2.