Countdown To Competition

In my opinion we are likely to see a significant step change in a2 competition within 2016, we are already starting to see some ventures coming to the fore.

In the US, Origin Milk are calling A2M’s bluff and are selling a2 fresh milk even prior to patent expiry. In the UK several companies now are already marketing Guernsey milk for its a2 benefits, stopping just short of calling it a2 milk.

There may well be several multinational dairy companies paused and generally waiting to pull the trigger following patent expiry. Perhaps even the likes of Dean Food’s who failed to takeover A2M last year.

A primary A2M patent expires starting in May this year in key territories, NZ, Australia and US, this patent covers;

> Food Product and Process
> Bovine Genotype Testing for Beta-Caseins
> Breeding and Milking Cows for Milk Free of Beta-Casein A1

There is another patent covering the Animal Genotyping Method which does not expire until 2023, and some of this forum regard this as a final level of competitive protection.

However, it is a test and patent that relies on the DNA testing of cow tail hairs to determine a2 status. Other companies have developed alternative a2 tests using other technologies, such as Lion who test for the percentage of a2 in the milk rather than testing the DNA of the cow.

In Australia, both Lion and Parmalat in 2014 launched their “contains a2” milk brands, and in my opinion we may very well see them launch their own fully a2 brands in Australia as early as May.

A2M will still retain specific ongoing patents as they relate to the marketing of specific therapeutic uses, but the patents preventing the wholesale marketing of a2 products seem to be awaiting a major challenge about here.

My opinion is that A2M still remain very well placed with a first mover advantage and good entrenchment in Australia, they have very good brand image despite programmes like the checkout and competitors like Lion and Parmalat knocking them.

A2M may lose a little market share here and there, but it shouldn’t be catastrophic in my view.

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11269353

http://www.originmilk.com/

http://www.abelandcole.co.uk/guernsey-milk