A2M 1.04% $5.71 the a2 milk company limited

Media Updates, page-8519

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    Except the two (brand awareness and health claims) are not mutually exclusive. In fact, in this case they are obviously closely entwined.

    A2 has a strong brand and has been the longest and most consistent proponent of the A2 proposition, therefore it is the likeliest to acquire new customers on that basis.

    All larger competitors (e.g. Nestle, Danone, Feihe etc.) offer both A1-containing and A2-only products, so it is hard for them to be viewed as having a consistent position on the health claims (irrespective of whether you believe them or not).

    Smaller A2-only competitors such as Care A2 are rarer, and have a lot of other issues to making it harder to compete, mainly to do with very limited supply and pricing pressures. They are trying to gain market share with a lower price point whereas they have much higher ingredient costs. It doesn't help in this case that the Care A2 packaging is pretty ugly too. About the only thing they have going for them is that they are an A2 only company and that they fill an 'Australian made' niche for people (despite being foreign owned). They have a lot of US money behind them as well, but that will only last so long as they continue failing to gain traction.
    Last edited by werdplaya58: 23/04/21
 
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