Media Updates, page-123

Keith answering some of the queries on the comments after his article

a2m win win win - plenty of interesting positive points made by Keith

The shortage of supply for infant formula in Australia appears to be because of further rapid increase in demand. We will all get better numbers on this on 20 November at the AGM.

Nestle does not have the supply capacity to get into A2 fresh milk in Australia. It does have the capacity to market A2 infant formula in Australia from imported product.

The market share for A2 fresh milk in Australia is just over 10 percent by value. In a diverse market, that makes them number 1. In infant formula, a2 Platinum is easily the market leader at 32 percent.

So A2M got everything it wanted.

by keithwoodford | Wed, 24/10/2018 - 14:09up0Casual Observer,

Lots to answer there. But here is a start.A2M sued Lion re misleading advertising, and Lion counter sued re issues of the science.The out of court settlement has led to Lion desisting from its misleading advertising. Lion also withdrew its claims against the science. So A2M got everything it wanted.The market share for A2 fresh milk in Australia is just over 10 percent by value. In a diverse market, that makes them number 1. In infant formula, a2 Platinum is easily the market leader at 32 percent.The shortage of supply for infant formula in Australia appears to be because of further rapid increase in demand. We will all get better numbers on this on 20 November at the AGM.Nestle does not have the supply capacity to get into A2 fresh milk in Australia. It does have the capacity to market A2 infant formula in Australia from imported product.Fonterra's initial supply of A2 has indeed come from one or two herds. However, Fonterra is also talking to many of the big farmers about reorganising their herds. Let's see what emerges! You are correct, Fonterra has achieved its initial supply without paying a premium. The story behind that (and there is a story) could be interesting when it finally emerges.Given the time it takes to converts herds, waiting until all is evident before starting the process could well be an illustration of having one's head in the sand. Once again, time will tell.KeithW