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- Release Date: 10/09/13 19:07
- Summary: GENERAL: ATM: Strategic Supply Agreement for Western Australia
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ATM
10/09/2013 17:07
GENERAL
REL: 1707 HRS A2 Corporation Limited
GENERAL: ATM: Strategic Supply Agreement for Western Australia
A2 Corporation Limited (NZX:ATM) has appointed Western Australia's most
experienced dairy company, Brownes Food Operations Pty Limited, to package a
range of a2 (TM) brand fresh milk products to meet the rising demand from
Western Australian consumers.
Brownes Perth-based processing plant will begin producing a2 (TM) fresh milk
products in November 2013 from locally sourced a2 dairy herds.
A2 Corporation (A2C) Chief Executive Officer Geoffrey Babidge says a number
of options have been considered to efficiently supply Western Australian
consumers who have discovered the digestive ease of a2 (TM) fresh milk
products.
"This is a strategic medium term supply agreement that will deliver Western
Australians the high quality a2(TM) fresh milk direct from West Australian
farms. Brownes fully supports the a2 proposition and is well positioned to
meet the expected increase in consumer demand."
Sales of a2(TM) fresh milk products in Australia increased by 48 per cent in
the 12 months to 30 June 2013 to become the fastest growing dairy brand and
one of the top 20 branded items in the entire supermarket channel. a2 (TM)
fresh milk is estimated to have more than 7.4 per cent market share by value
of fresh milk sales in supermarkets in Australia.
A2C's own processing facility at Smeaton Grange in south-west Sydney will
continue to supply a2(TM) fresh milk products to Western Australia until
Brownes begin packaging in November.
"A2C expects that the surplus capacity created from this move at Smeaton
Grange will be absorbed over subsequent months by the increasing consumer
demand for a2 (TM) fresh milk in New South Wales. There will also be
efficiencies from lower transport costs in servicing Western Australia and
benefits from an increased product supply there," Mr Babidge says.
End CA:00240947 For:ATM Type:GENERAL Time:2013-09-10 17:07:03
