I believe that A2m's management knew that Nestle was going to move into A2, and that other players will also get in on the market. It has been talked about for some time. They then:
- firmed up a strategic relationship with the largest milk supplier in the world - Fonterra
- increased the marketing budget by $25m - $35m
- increase the number of outlets in China and the USA substantially
Potentially A2M is seen as the premium brand, with Nestle being pitched at a lower price. All in all, our management has continued to show great strategic thinking.
nestle - doing A2 infant formula, page-58
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