A2M (ASX) Shoppers fighting for baby formula.

Originally posted by SmugLex ↑

I did say I was going to not post for awhile but thought I would chuck in my two bobs worth in this post. Yesterday I did my Costco shopping run at Moorabbin Vic for groceries and although the twins have outgrown IF we still buy 2 x 3LT of A2 Lite and 4 x 3LT of A2 Normal milk at a time.

They dont stock A2 IF but they do stock Aptimil, Bellamys amd BUBs IF. The Aptimil pallets had sold about 25% of pallet and manufacture date was only a few months old. Bellamys had partially sold some of the top row of cartons and the manufacture date was close to a year ago. The kicker was BUB's, only a few cans sold from the top row, the manufacture date was over a year ago ! This has been the case on other shopping runs at this and other Costco's and other supermarkets I frequent.

Regardless if BUBS sells directly to China, it does not take too much smarts to see that they are left with sheet load of unsold inventory if the manufacture date is so old. I have never come across any A2 IF stock at Chemists or grocery stores that is more than a few months old. A2 is made in NZ from locally sourced milk before being shipped direct to China or via Australian retail if sourced from the local Daegu's. Bellamys may be made from locally sourced milk but other organic ingredients are shipped from various parts of Europe.

BUB's from their own admission source 100% of their infant formula ingredients from the Netherlands which is mixed and packaged here before shipping out. Think about it, the raw ingredients manufactured in the Netherlands has to be 1. trucked from the Euopean factory to the ports 2. Go on a lengthy shipping journey from there to Oz 3. trucked to the Australian mix and pack factory which despite being just packed the ingredients are already much older to start with than A2's.
3. Then trucked to the nearest port for shipping to China.

The Chinese love fresh as do I and most others I suspect who want the freshest best product for their newborn's. Bellamys and more so BUB's convoluted manufacture process path does not compare to short and simple and fresh is best manufacture path of A2.

Costco would take on A2 in a heartbeat as there is no loyalty to any brand, only to what sells well and the full pallets and 1 year plus manufacture date of BUB's does not bode well for their future so I have never been tempted to park a single dollar on their share register from the early days and from what I am seeing now I am glad I never did. A2 I am sure have been approched by Costco to stock their product but A2's canny management want to make sure they can keep up stock to their current retail outlets before taking on the mighty Costco option as well.

I think once A2 get CDFA approval its only then they will ramp up production and the existing plant and the new IF plant and more than likely sign up with Costco. I would not be suprised if the current low sales of BUB's IF persist at Costco they will kick them to the curb and replace them with A2 and sell them by the pallet load just as the best selling A2 milk they stock. I think once A2 annouce CDFA the rate of increased sales reporting is going to rocket and so will larger NPAT annoucements with a corresponding jump in SP for all us holders again and again. Congratulations to all current share holders, commiserations to Bellamys shareholders and deepest sympathies to BUB's shareholders still holding when reality of actual sales and sales growth hits them.....!!

GLTAH.

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you drink a lot of milk... how big is your fridge??

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Last $5.74		Change 0.105(1.87%)		Mkt cap ! $4.076B

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Shoppers fighting for baby formula., page-27

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