How the rise of A2 milk in an industry that has been reshaped by low-cost generic milk from big supermarkets is adding millions to the fortune of Rich Lister Tony Perich and provides a powerful lesson about the importance of brand differentiation; A2 is 26 per cent-owned by health food company Freedom Foods
August 13, 2013 Leave a comment
Andrew Heathcote Rich Lists editor
How the rise of A2 milk is adding millions to the fortune of Rich Lister Tony Perich
Published 13 August 2013 09:53, Updated 13 August 2013 10:31
A2 Corporation chief executive Geoff Babidge expects some slowdown after the Fonterra scare.Sasha Woolley
The rise of milk group A2 Corporation in an industry that has been reshaped by low-cost generic milk from big supermarkets Coles and Woolworths provides a powerful lesson about the importance of brand differentiation in a highly competitive market. Having claimed a strong foothold in the domestic milk market, A2 is eyeing lucrative opportunities overseas but recent events in the Chinese infant formula market highlight the difficulties of entering new territories. A2, which is listed on the New Zealand sharemarket, is 26 per cent-owned by health food company Freedom Foods, one of the best performers on the ASX in the last 12 months. In the year to August 5, Freedom Foods’s share price rose from 56¢ to $1.98 – a 230 per cent increase. Few listed companies can lay claim to such a big rise, which has lifted Freedom Foods’s market capitalisation to $230 million. Read more of this post







