"If a customer, who does not know the history of A2 milk like we...

"If a customer, who does not know the history of A2 milk like we do, sees 2 different brands of a2a2 milk on the dairy shelf, what is the likelihood that they will choose the more expensive brand?"

Like I said, if they are making a switch from A1 milk they are already spending 50% more and so the cost isn't their primary consideration. You have to ask why are they actively looking at A2 milks in general? I don't think you typically get an average customer who is going to buy their regular milk and just suddenly decides to buy an A2 milk instead. Mostly it is advertising, word of mouth, health advice which may lead them to consider it to begin with, and the bigger battle is getting them to pony up the extra 50%. I would argue that A2M has already won that advertising/brand recognition battle by the time they are standing their considering their options, and a 15% saving isn't going to change that.

I disagree that A2 prices will have to come down. Competitors lower prices are unlikely to be sustainable for the reasons I outlined in my earlier post, as the margins are likely to be paper thin and they are cannabalising their own sales base in order to achieve it.

I do agree about Fonterra, not much has happened and would like to know the answer to that question also.