"How much sales have a2m achieved in those markets? Probably miniscule to none."
$842m in Oz / NZ $405m in China / Asia $35M USA $21M UK.
A2M have shut down UK. They have stated there focus is on USA and other Asia (as well as China) hence the huge increase in marketing spend.
Again we digress but, from A2M:
"The growth will come from both our existing product ranges and innovation within these markets. For example, the launch of a2 Smart Nutrition™ – a fortified milk drink targeting children 4-12 years of age – enables us to migrate consumers when they grow out of infant nutrition in China.
In addition, we continued to selectively explore new market opportunities. As a part of this we undertook increased consumer research and in-market activity in Vietnam, Korea and the city of Hong Kong.
Alongside the ongoing work we are doing with Fonterra, the focus continues to be milk powder products in Vietnam, testing a fresh milk presence in Singapore and Korea, and infant formula in the city of Hong Kong."
"We anticipate continued growth in revenue across our key regions supported by increasing brand and marketing investment in China and the US"
The future is not SM1 as sole supplier of IF into China.
SM1 Price at posting:
$8.54 Sentiment: Sell Disclosure: Held
(20min delay)