A2 Milk expanding its footprint in the United States
Written on the 17 January 2018 by David Simmons
The a2 Milk Company (ASX: A2M) is making a significant push to increase its presence in the United States.
After a huge effort to break into the Chinese market in 2017, the company now has its sights set on the north east of the US.
The dairy producer is undertaking a dramatic expansion in the US, pushing into states including New York and Pennsylvania.
The group announced to the ASX it has been accepted into major retailers in the US and will increase its presence from 3,600 stores to 5,000.
A2 Milk is leveraging the success of its products in California and the south-east of the country. It now has reached sales levels which support expansion into new areas.
The product will be sold through a number of major retailers in the north-east region, including Safeway, H-Mart and Fairway Foods. This distribution builds on a growing presence in the natural channel in this region through stores like Wholefoods, Sprouts, and The Fresh Market.
This morning's announcement is the first big news for the milk company which had a successful year navigating the Chinese regulatory market.
In late September 2017, the group finally received import approval to ship a2 Milk's infant formula to China.
The process to bring the infant formula to China was exhaustive, including the testing of raw materials and finished product testing.
This morning's announcement has seen shares in a2 Milk jump up by 2.29 per cent to $7.59 at 10.45am AEDT.
Business News Australia
Author: David Simmons