Premier opens NSW Processing Facility

Media release

28 August 2012

Premier opens NSW Processing Facility for Australia’s Fastest Growing Dairy Brand

Barry O’Farrell, The Premier of New South Wales, today officially opened A2 Corporation’s Sydney processing facility built to satisfy the rapidly increasing demand for a2tm brand milk products in the State and throughout Australia.

The facility at Smeaton Grange has been designed to efficiently process up to 60 million litres of fresh milk a year supplied by specialist a2tm certified dairy herds in Australia. The location was selected given advantages in infrastructure and access in western Sydney.

A2 Corporation Chief Executive Officer Geoffrey Babidge says a2tm brand milk continues to be the fastest growing premium dairy milk brand in Australia.

“Consumer acceptance of a2tm brand milk as easy to digest and with other potential benefits has been achieved against a background of competitive price pressure for standard milk. Sales of a2tm brand fresh milk have increased in excess of 45 per cent over the last 12 months and now represents almost 6 per cent share by value of fresh milk sales in the Australian supermarket channel.”

“We are delighted the Premier has been available to officially open the Smeaton Grange facility, become familiar with the a2tm brand milk proposition and to meet with our principal stakeholders, customers and management.”

Smeaton Grange will meet consumer demand primarily in New South Wales with existing contract processors supplying other States of Australia. The benefits of a2tm brand milk are also being shared by A2 Corporation’s contracted dairy farmers who receive premiums at a time when there is downward pressure on farm gate pricing in the dairy industry.

The facility is one element in A2 Corporation’s ambitious strategy to develop a2tm as a global dairy brand. In coming months the Company will accomplish another milestone with the launch of a2tm brand milk to consumers in the UK in association with Britain’s largest fresh milk processor and distributor, Robert Wiseman Dairies.

A2 Corporation is also progressed in its strategy to enter the infant formula market in Asia, with China an initial focus. An agreement for the manufacture of infant formula to A2 Corporation’s specifications is already in place and discussions well advanced in respect of a distribution and marketing arrangement with an in-market participant.

“Australian consumers have shown an understanding of the benefits of a2tm brand dairy products which we are confident can be replicated in other markets where there are particular concerns around digestion of standard dairy products,” Mr Babidge said.

ENDS

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