A2 Corp to take over NZ marketing, enter North America, Europe
BUSINESSDESK: A2 Corp, which markets milk products with a protein variant claimed to have health benefits, wants to directly enter the New Zealand market and is looking to expand into North America and some European nations after undertaking a strategic review to speed up growth.
The alternative-market listed company will shift its focus to a number of opportunities in a bid to ramp up growth, including directly marketing into New Zealand, it says in a statement.
A2 plans to expand rapidly include entering markets in North America, German, France Italy and Spain via joint ventures, using local contract manufacturers or investing in regional processing, it says.
Other plans include developing its suite of intellectual property and patents, and accelerating its existing investment in Britain and China. It is also looking at expanding its product range to ultra-heat tested (UHT) milk and yoghurt.
"A2 is well placed to drive strong future growth independent, with an openness to engage with potential partners who may assist with its global ambitions," the company says.
"By virtue of the capital light partnership model the company is well positioned to progressively fund its development through its internally generated cashflows and strong balance sheet."
The six-month review's results come a week after A2 entered into a Chinese distribution arrangement with China State Farm Holding Shanghai Company, a subsidiary of state-owned China National Agriculture Development Group Corp, as the exclusive distributor of its a2 brand infant formula.
The shares fell 1.5% to 67 cents, having surged 183% this year.