@talk-less is pretty much spot on. I do see where you're coming...

@talk-less is pretty much spot on.

I do see where you're coming from as there will inevitably be some amount of cannibalising their own existing sales. However, there just needs to be a business case as to why this is outweighed by new customer acquisition and new revenue.

Even without access to A2M's internal market research, there seems to be a good case for it. These were mostly covered above e.g. providing a viable option for new customers in SEA such as Vietnam and Cambodia; as well as entry level option in Tier 3 & 4 Chinese cities via CBEC.

A few other points I'll add though. As an English label product A2 Gold will not be sold in MBS stores alongside the China label product. So they are able to assess how it performs alongside the A2 Platinum in English label channels and whether it has a net positive effect, before deciding whether to seek a China label for this (i.e. through MVM).

The other point which probably should be noted is that Feihe, the largest competitor, has something like 30 IF different product ranges. Probably our closest overseas brand rival is Aptamil, which has probably at least 9 or 10 different IF products.

We've done well with just one for our entire existence as an IF company. But at some point the company has to grow up, do good research on consumer segmentation, and then trust that research and differentiate its offerings towards these segments. The branding (Gold) vs. (Platinum) are completely different appearch is pretty clear to most consumers that they different offerings, so unlikely to confuse them visually either. There will also be a higher end product coming in above A2 Platinum soon too - expect that to be a pretty impressive looking tin.