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Home / Business

Licence deal for A2 in US

Liam Dann
By Liam Dann
Business Editor at Large·
22 Sep, 2003 10:41 AM2 mins to read

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By LIAM DANN

High-tech milk company A2 Corporation has struck a licensing deal which will see its milk introduced to the US market.

A2 has formed a strategic partnership with Michigan natural foods company IdeaSphere.

IdeaSphere has an excellent track record of identifying and bringing to market innovative science-based products, says A2
chief executive Andrew Clarke.

A2 was struck a double blow early this year when co-founders Dr Corran McLachlan and Sir Howard Paterson died in quick succession.

Discussions with IdeaSphere were initiated by McLachlan before his death, Clarke said.

It was immensely sad that both he and Paterson were not present to witness the globalisation of A2 milk, he said.

IdeaSphere chairman and chief executive David Van Andel described A2 milk as a breakthrough product which provided "a nutrition platform to positively impact millions of people".

Van Andel is the son of Amway founder Jay Van Andel.

Described as "publicity shy" by US media, IdeaSphere this month announced plans to buy US nutritional supplement brand Twinlab, which has more than $160 million in sales.

A2 has been embroiled in a scientific debate with Fonterra over whether A2 milk is a healthier alternative to ordinary milk. The milk contains only the A2 variety of beta casein protein, while standard milk can include both A1 and A2 varieties.

Cows naturally produce one kind of milk or the other but A2 Corporation is the first company to identify which cows are which and sell the milk as a pure product.

A2 claims that beta casein A1 is linked to heart disease and childhood diabetes. Fonterra disputes that.

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