I have to admit that when I first read about the nestle new a2 competitor news, selling out my a2 shares was actually crossed my mind because worry that a2 will lost its market share to nestle (one of the largest food company with deep pocket).
But when I put a further thought into it. I start to think hang on a minute, it is not necessary a bad news; in fact it is actually a good news. Why I say so, because imagine you are a parent of a newborn baby, you are making the decision to chose which type of IF to give to your child, a few weeks/ months ago (before this nestle into a2 milk news and the earlier fonterra co-operation with a2 news announcement) , as a consumer you may not as confident as now about the benefit of a1 free IF, you might thinking of buying organic IF or other A1/A2 IF. But after these recent announcement it will increase the awareness and credibility of a2/a2 product, hence influence your your decision leaning towards purchasing a a2/a2 product. From hundreds of choices of brands (a1/a2, a2/a2, organic) to less than 5 brands ( a2/a2 producers) and we all know that among this 5 brands, the a2 platinum from a2mc will be in the highest chance of getting selected due to their pioneer position and brand recognition . I will be thinking that big companies already validate the benefit of a2/a2 products, so I also need to give this better product to my children. IMAGINE THAT HOW MANY PERCENTAGE OF CONSUMERS WILL CONVERT FROM A1/A2 TO A A2/A2 PRODUCTS, SO IS THIS STILL CONSIDER A BAD NEWS OR ACTUALLY A GOOD NEWS?
The headline of the news should not be more competition to a2mc and lower margin etc..., it should be more competition on current a1/a2 products producer. If I am a a1/a2 producers I will defenitely be more worry now. I will not name the brands name here but we all know.
This is my personal opinion only. DYOR.
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