CFDA Registration of the A2 Milk Company’s Infant Formula

28 September 2017

NZX / ASX Market Release

Synlait Receives CFDA Registration of the A2 Milk Company’s Infant Formula

Synlait (NZX: SML; ASX: SM1) has received registration which will allow exports of The a2 Milk Company Limited’s (NZX: ATM; ASX: A2M) China label infant formula to China to continue.

All manufacturers of infant formula are required to register brands and recipes with the China Food and Drug Administration (CFDA) in order to import products into China, through traditional import channels, from 1 January 2018.

Synlait submitted the dossier application to the CFDA for the registration of The a2 Milk Company’s infant formula in May 2017.

The rigorous process included raw materials and finished products testing, certification of manufacturing standards and formulation assessment, as well as packaging changes in response to labelling and branding requirements.

“We view this registration as another milestone in our long-term partnership with The a2 Milk Company. Synlait teams in New Zealand and China compiled a significant dossier to ensure our application was in line with CFDA requirements,” said John Penno, Synlait’s Managing Director and CEO.

“Having successfully navigated the process, in conjunction with The a2 Milk Company, we are now in a stronger position for future applications of other Synlait customers,” adds Mr Penno.

Geoffrey Babidge, Managing Director and CEO of The a2 Milk Company, said: “Our flexible multi-channel infant formula strategy in both China label products (offline and online) and cross-border English label products (online) has positioned The a2 Milk Company well in the context of the current regulatory requirements.”

“We look forward to the continued expansion of our business in China following this announcement.”

Synlait and The a2 Milk Company’s commercial relationship began in 2010 with a goal to manufacture the world’s first infant formula made from milk containing only the A2 beta-casein protein type, and free from the A1 protein type.

The a2 Milk Company worked closely with Synlait and their Canterbury milk suppliers to introduce and manage A1 protein-free herds, while simultaneously building a manufacturing process capable of exclusively streaming that milk into finished infant formula.

Following the rapid growth and sustained success of The a2 Milk Company’s infant formula in the Asia Pacific region, Synlait and The a2 Milk Company announced a new supply agreement for a minimum term of five years in August 2016.

More recently, The a2 Milk Company acquired an 8.2% shareholding in Synlait in March 2017 to further strengthen the relationship between the two organisations.

ENDS

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