A2 Corporation is reporting a breakthrough into the lucrative US market.
A2 Corporation is reporting a breakthrough into the lucrative US market.
KEY POINTS:
A2 milk is to go on sale in the mid-western United States through supermarket chain Hy-Vee.
The milk is thought to have health benefits for some people and cows which produce it can be identified using intellectual property owned by New Zealand-based A2 Corporation.
Announcing the Hy-Vee dealtoday, A2 Corporation chief executive Anthony Lawler said the launch of A2 milk into the US was a major platform for growth and followed several years of solid preparation.
The US market held tremendous promise for revenue growth and for expanding A2 Corporation's business in one of the biggest consumer and beverage markets in the world, he said.
A2 Corporation receives royalty income from sales of A2 milk products and testing for A2 cattle, and shares in the profits or losses of associates and subsidiaries formed for those purposes.
It is launching the US sales in partnership with Original Foods Company.
In the six months to the end of September A2 Corporation reported a pre-tax loss of $1.9 million, on operating revenue of $3.5 million.
Its shares were up 0.5c to 8.5c in morning trade today, having ranged between 14c and 6c in the past year.
