Media Updates, page-243

Perfectly timed media response to show A2 Milk Co is doing its part to help the mom's of Australia source A2 IF without leaving home. They were doing it in-house but now outsourcing to those that specialize in local online sales.

Smart thinking, stay capital lite and just like what they did with Synlait, outsource what you require to companies that specialize in their fields. No large capital outlays or lengthy time frames to impede growth a la Apple Inc. Allows you to scale up far quicker than trying to keep everything in-house.

I dont think the media or the instos give enough credit to A2m management in achieving such amazing success in Asia and in the USA. Plenty of big established Australian companies like ANZ, Telstra, Crown and Westfarmers have tried to grow their revenue base by expanding overseas and failed miserably and blamed everyone and everything but themselves for failing in their overseas expansion ventures.

The quiet achiever A2m has had amazing success in Asia and again in their second attempt in cracking the US market. Other companies tried once and failed and never had the gumption to learn from their mistakes and take a second crack at it. Kudos where its deserved and although it seemingly looks like all this success has only occurred in recent years it has taken A2m over a decade of learning the ropes before finally cracking lucrative overseas markets. I think @blackeyed estimate of a $30 SP by the end of 2020 might be a tad optimistic but with such explosive demand for A2 that seems to show no let up it may be a lot closer to $30 than today SP by then IMHO.

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a2 Milk to sell direct to Australian consumers

31 October 2018

The a2 Milk Company has partnered with an e-commerce company to enable it to sell infant formula products direct to local consumers.

Catch Group is supplying the company with a tailored e-commerce solution for its a2 Platinum Infant Formula, and Catch will manage the web portal (www.a2store.com.au), e-commerce, logistics, postage, reporting and finance tools on behalf of a2 Milk.
The a2 Milk Company CEO, Asia Pacific, Peter Nathan said Catch Group had helped the company to provide a great solution to Australian parents who often cannot find a2 Platinum formula on supermarket shelves due to high demand.
“They can now order through our online store and get it delivered to their doorstep within 1-3 business days.”
Catch Group CEO Nati Harpaz said, “It’s exciting to partner with iconic companies like The a2 Milk Company to help them improve customer experiences online.
“Many FMCG suppliers require expertise and assistance with their direct to consumer channel and this is where we can step up and help.”