Conventional milk contains two main types of beta-casein protein, A1 and A2; the former is believed by many consumers and health care professionals to affect digestive health and possibly cause heart diseases and diabetes. This is where a2 Milk attempts to premiumize its brand. Australia-based The a2 Milk Co. Ltd. engages in the commercialization of A1 protein-free milk and related products. In order to do so, the company starts with specially selected cow that are not affected by the natural genetic mutation leading to the production of milk containing A1 proteins.
According to management, a2 Milk captures the leading value share of 6.4% in the fast-growing Chinese infant nutrition market. At the same time, a2 Milk has become the top premium milk brand in Australia with an 11.2% value share. As of fiscal 2019, the company had approximately 16,000 stores (up 64% year over year) for distribution in China and 13,000 (up 161% year over year) in the U.S.
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