nestle - doing A2 infant formula, page-187

not without destroying itself at the same time. Remember they sell huge amounts of a1 formula.

Who has the most to lose if A2M continues to take market share in the China IF market? Who has the most to lose if A2M get more aggressive with their marketing about the negative effects of the a1 protein? Nestle would be right up there. Why because they use a1 milk in huge amounts of their other food products. For Nestle the spread of the anti-a1 protein message can have a negative effect on many of their other food products beyond IF. It is a big potential problem.

Now if Nestle are serious about entering the a2 IF market I believe this is the lamest attempt ever. Putting a little Atwo circle on a can which looks like every other can in the Illuma brand and using a name which could only be called copycat (ie not original in any way) does not suggest a premium product. They also sell a1 formula so they have the issue of how to market the a2 one without making the a1 product sound bad. It is the softest product launch in history.

So I am starting to think this move is a precursor to them launching a takeover for A2M. Put some fear in the market, drop the A2M SP while they accumulate. Someone has been buying the dips on a regular basis since the HY results were announced. Does this sound far fetched? Nestle have engaged in dodgy behaviour before in marketing IF in China. They have a lot to lose if the anti-a1 message gets too widespread. By being A2M they control the a2 message and it's growth.

Something to think about