Ann: Change in substantial holding, page-45

Hi Chianti,
Following your train of thought about the US market, I find it interesting that the annual report mentions the expansion in the US market but only mentions California, the Southeast, the Northeast and Mid-Atlantic states along with "natural retail chains". I live in Michigan where A2 is carried by the Meijer chain. Meijer has a distribution footprint in Michigan, Ohio, Indiana, Illinois and Wisconsin and is expanding into other states. Wiki mentions that "...based on 2015 revenue, Meijer is the 26th-largest retailer in the United States."

Through direct knowledge of herd conversations locally as well as friends in nearby states, the conversion process is starting to ramp up. There is some expected resistance from institutions who have stakes in the current dairy industry but lots of farmers are betting on the long game here. This is anecdotal data and a limited sample size but it caught my attention.

I think its only a matter of time before A2 reaches critical mass in the US. At some point yes, there will be competition from the "big boys" but with first-mover status the A2 Milk Company is in my opinion positioned to educate and carve out a huge market percentage before that happens. Herd conversion is key along with the complexities in not mixing a1/a2 supply chains as the conversion takes place.

Time will tell but I'm particularly excited about the continued focus and expansion in the US market which bodes well for future SP.