A2 severs ties with milk distributor

Milk business A2 Corporation has severed ties with its Queensland licensee and is taking greater control of overseas operations.

The company, which has targeted a niche market with milk it claims has extra health benefits, said it had terminated a deal with Brisbane business A2 Dairy Marketers (A2DM), which is now in administration.

Its Australian subsidiary had taken over distribution in Queensland.

A2DM had been fined for making misleading statements about the health benefits of the milk.

A2 chief executive Andrew Clarke said the problems in Queensland had been a setback but the milk had been off the shelves for only one to two weeks.