Want to know exactly what resonates with me? the vertical...

Want to know exactly what resonates with me? the vertical integration plus the ex–A2 Milk leadership is a compelling combo. It’s not just hype. They’ve shown they can scale a dairy brand to serious numbers without sacrificing cost efficiency or quality. The recent cost cuts suggest they’re going for sustainable growth rather than rushing into overproduction.

The Mutree deal is a concrete example of handling international demand in a controlled way. Sure, 100k units isn’t huge compared to the $24 billion global infant formula market, but even a small slice of that space can impact the bottom line. Especially if overhead stays lean. It’s a measured strategy that points to a company building for the long haul, not chasing fleeting pops.

Regulatory changes can indeed be tricky; you don’t want to overstock and then face shifting rules. Peter Nathan and his team likely learned from the situation with Bubs where, as rumor has it, they ended up with about five years’ worth of formula stock tied to Andy Zhang, only to see regs shift shortly after. That’s the kind of pitfall you want to avoid.

Thanks to vertical integration, they can precisely control how much product enters the market. They can produce in smaller batches, position it as a premium offering across tens of thousands of mum-and-baby outlets in China, and tap into that cultural emphasis on giving “the best” to the only child in a family. Two grandparents, two parents, and one kid often means high willingness to pay for top-quality formula.