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- Release Date: 28/04/14 10:36
- Summary: GENERAL: ATM: Regulatory changes in China
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ATM
28/04/2014 08:36
GENERAL
REL: 0836 HRS The a2 Milk Company Limited
GENERAL: ATM: Regulatory changes in China
28 April 2014
Regulatory changes in China
As part of its growth agenda, The a2 Milk Company Limited (a2MC) is
establishing a business engaged in the sale of high-quality, a2 Platinum(TM)
infant formula for sale initially into China, Australia and New Zealand. The
product is exclusively manufactured on behalf of the Company by Synlait Milk
Limited in Canterbury.
a2MC has previously advised shareholders that the regulatory environment for
infant formula in China is evolving and we have been closely monitoring and
responding to developments. More recently there have been moves to change the
access arrangements for infant formula imported into China including a
requirement for manufacturing companies and brands to achieve a new form of
registration from 1 May 2014.
The Minister of Primary Industries announced on Thursday 24 April 2014 that
based on advice from Chinese officials most if not all New Zealand based
infant formula manufacturers will achieve registration however the timing for
this is presently uncertain. In addition Chinese authorities will require a
close association between brand owner and manufacturer over the manufacturing
process and formulation of brands.
a2MC Managing Director Geoffrey Babidge says "the requirements of the
registration process are consistent with our expectations. We have been
working closely with Synlait Milk in anticipation of potential changes and
will continue to do so to build the Company's position in this market. a2MC
applies additional quality management processes to the supply chain from
certifying each individual cow in the a2 milking herds to the finished
product. The application of the A2 System ensures that a2 Platinum(TM)
branded infant formula is consistently of the highest quality and
performance."
Currently there are sufficient levels of inventory of a2 Platinum(TM) infant
formula held by our distribution partner China State Farm State to ensure
consumer demand in China continues to be satisfied.
The regulatory changes affecting China should not impact the production of a2
Platinum(TM) infant formula for sale in other markets, including Australia
and New Zealand.
For further information contact:
Geoffrey Babidge
Managing Director
The a2 Milk Company Limited
+61 2 9697 7008
The a2 Milk Company Limited
a2MC 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.
a2MC has operations in Australia, New Zealand, the UK and China and is
pursuing growth opportunities in Asia, North America & Europe.
a2MC is listed on the NZX market and trades under the code ATM.
End CA:00249791 For:ATM Type:GENERAL Time:2014-04-28 08:36:54
