MBS

The Mother and baby store network in China is 120,000 outlets strong.

A2 Chinese label formula is found at only 22,000 shops at dec 20 or tracking at 29k in March 2021 with a market share of 2.4%.

We only have exposure to 1/5 of the network at the moment.

My calculations show a current MBS market of NZ$17 billion and growing to $24 billion by 2025.

A2 milk can reasonably expect to take 5% by 2025 or $1.2 billion a year MBS business. (Circa 25% p.a growth every year from this channel).

This is on top of English label formula which should at least return to its pre COVID glory.

The big sleepers are Chinese interests in liquid milk and US Exposure to a2 platinum formula. These would be the future large growth prospects.

Now, you can see why we need to secure additional milk powder capability and keep Chinese partners and interests aligned.