"Synlait started producing plant-based advanced nutrition products in the last quarter of its financial year for a new customer, Abbott, the biggest supplier of infant formula powder in the United States." this is from
https://www.stuff.co.nz/business/farming/agribusiness/133002186/synlait-reports-43m-annual-loss-expects-to-improve-this-yearI don't know why author is so sure that new customer is Abbott, but that this customer is interested in plant-based nutrition products is known for some time. In comments to the last year report Synlait also stated that "
new multinational customers will start to lift margins and improve asset utilisation atPokeno and Dunsandel (Liquids facility)." and earlier this year Watson (CEO) commented that
"The mystery customer has a big focus on southeast Asia, which will help Synlait’s geographical diversification." All of these make me think that infant formula is not really a priority for that customer. Btw, to launch a new IF brand even for Abbott alike is not walk in a park and Synlait is not waiting for another SAMR for them as they would have to disclose such information to the market plus I think this information is publicly available and would be know anyway. Who is the mystery customer I don't know, but for instance, Unilever is a good candidate as well. In 2020, same year as Synlait made announcement, Unilever launched big program pushing healthy plan based nutrition products in southeast Asia.
And I think "Notice of cancellation of Synlait’s exclusive supply rights" is just simply what it is - attempt to cancel exclusive rights and nothing more. No need to try to read between the lines here. This would be much better than three year notice to cancel agreement. Just canceling exclusive rights will keep agreement in place and give a2 (and ultimately to Synlait as well) more flexibility and time to transfer production in whole or partially to MVM (which is at least two years away) or some other facility they might have in the future. Transfer of production will happen one way or another, just in this way it would be less painful for every party involved. And tbh, I don't see how in current situation Synlait could possibly "retaliate" without completely destroying itself.
(20min delay)