Strong Growth Drivers, page-9

Just because something is more expensive does not mean it provides a higher profit margin. You need to take into account cost of production.

Last year A2m reported losses. This year its forecast is approx 20mil.
Bal had profits of 1mil, 9mil and its expected to be between 20-50mil for this year.

The question is, once other competitors start increasing their production and adding their products to the market who will stand out?

A2 is found in 1/3 of cows.. not very rare.. its much harder getting your hands on a free range cow.

Only reason A2m is doing so well is because there is shortage of supply and they have been able to increase production quicker than BAL has (as its hard getting organic cow milk). Once the supply gap is filled, market share will move back to BAL for two reasons.

1. As you mentioned, its cheaper..
2. Its also a better product hands down.