Food Manufacturing and processing generally is inherently a very diificult and very expensive business to build plant and operate let alone make a decent profit or any profit ...and the Market doesn't always favour them. ( ie Synlait which Im only picking out due to the current relevance ) .Then their problems become the Retailers problems directly or indirectly . There are many big Brands across different food groups that rely on these manufacturers to enable them to Retail their products and they have enjoyed great success ie A2. . KFC is another just as an example . This is the great conundrum for A2 as the current model obviously works well yet they have now grown so much how far do they go down the manufacturing path as to do nothing more is probably not the answer and if they do is this the best use of their capital going forward ?
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