A2M (ASX) Media Updates

Originally posted by werdplaya58: ↑

Some valid points but I would argue that local sales / brand reputation matters a lot because it factors into how Chinese consumers regard the product. To an extent they are making inferences about the product's quality based on the idea that it is preferred by Australian parents.

The Australian market may be like 2-3k stores vs. ~30k stores that stock a2 products in China. However what happens in the Aus market affects consumer demand in the Chinese market. The actual daigou trade may have been disrupted somewhat but it doesn't mean that word of mouth, social media, etc. has shut down entirely.

So I would say visibility and popularity in the Aus market shouldn't be taken for granted, even if in some cases it means cans sitting on shelves in areas where there is slower demand.

Having said that I don't think they need to have a shelf presence in every store across Australia just out of principle. Especially in areas where there is very little demand at all. You also don't want to see inventory being put on clearance etc. as it undercuts pricing and does brand damage. They just need to find the right balance. The channel mix shouldn't completely neglect local retail.

Theft also is a real issue. Interestingly in my local Woolies A2 is always in stock but is the only brand that has the theft prevention devices. If, as noted above, store managers have identified it as an issue, then I have no reason to doubt it. Not sure why A2M wouldn't supply stores with theft prevention devices if they requested them. You would only require a certain number in perpetuity and, in a way, it's good advertising.

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I don’t buy this theft story as the sole reason it’s being removed from many stores.
Theft might be a problem, but a small one, and not a reason to remove the item from the shelf entirely.
a2m is in control of this decision either way.

As you say, security tags should deter, so why not supply them?
I’d think it’s the supermarkets problem to protect the stock rather than each of the hundreds of brands that supply the product to the store. Plenty of smaller items that are easy to put up your jumper.

Why is a2 platinum targeted by crooks when there are other brands on the shelf, and others that are easier to nic without messing around with fixed security devices?

where is the stolen a2 platinum being resold? It’s not going to a pawn shop.
How many parents need a2 that bad and want to deal with crooks and stolen goods?

The common crim isn’t easily going to satisfy a black market with an abundance of stolen platinum.
They’d get a tin or 2 at a time. Not the easiest item to shove down your pants,

Do they steal it and put it on FB marketplace for half price? Seems like hard work for them.

and all these supermarkets with the same story, high security risk item, they are all getting hit, so they dropped it?
Seems like a bigger story if true.

But it’s available at chemist warehouse, so CW don’t have the same theft problem?
CW do have more menacing security guards but it doesn’t ad up to me.

I’d love to see an article run about how high the demand is for a2m specifically, if there is anything to it.
but I don’t think there is and I suspect theft is an easy answer from someone who doesn’t know much more than we do and doesn’t care much either, they just want to get on with their job of stacking shelves. I’ve met plenty of those guys on my a2 shelf search quests.

a2m know what there doing and we should know why too, but whenever I ask Customer Service I get the reply that it’s easily purchased through their website and thanks for my interest.

if I had a kid and needed it, and knew how much I needed, I’d probably subscribe to a delivery schedule with the confidence that it will be delivered with regularity, rather than chase it around town. That’s why I think Amazon will make us in the US and I wish they’d hurry about with it.

But the importance of shelf presence is covered in your post. Incredibly important for our image, and our international reputation - it’s a premium product used by Australian mothers.

If it’s not available on our shelves, Australians will forget about it.

Maybe we will become the Fosters of formula. Great advertising and a world-wide presence, but not something Australians have a taste for. Which doesn’t make sense either, because our baby formula market isn’t a small one.

slightly happier holder since the shareholders preso.
IMO, as terms mentioned, the next 6 months are incredibly important and Werds shipping data is particularly interesting and very important at this time.

The teams being educated on a2m in China are pushing Platinum hard, it’s being received well, so when those ships unload new product, it won’t sit on the shelf for long.