The a2 Milk Company expands US business to the North East

NZX Code: ATM
ASX Code: A2M


The a2 Milk Company Limited
ABN 97 769 415 292 – Incorporated in New Zealand
www.thea2milkcompany.com
16 January 2018
NZX/ASX Market Release

The a2 Milk Company expands US business to the North East

The a2 Milk Company is pleased to announce the expansion of the a2 Milk™ brand across the North East region of
the United States from January 2018.
Since entry into the US market, the business has been focused on achieving sales based targets prior to expanding
its footprint on a region-by-region basis. Sales velocities are now achieving sustainable levels in California, the
South East region and select natural retail chains, which supports the expansion into an additional region.
The North East, home to roughly 60 million US consumers, is significant for the refrigerated milk category and
accounts for ~20% of the total milk category volume in the US. The geography includes New York, New Jersey,
Pennsylvania, Connecticut, Rhode Island, New Hampshire, Massachusetts, Vermont and Maine.
The a2 Milk™ brand has been accepted for ranging in a number of major retailers in this region including Ahold,
Shoprite, Safeway, H-Mart and Fairway Foods. This distribution builds on a growing presence in the natural
channel in this region through Wholefoods, Sprouts and The Fresh Market.
As a result of this initiative, a2 Milk™ will increase it’s ranging from ~3,600 stores to potentially ~5,000 retail
stores across the US from January.
The expansion in distribution will be supported by increased marketing investment behind the “Love Milk Again”
advertising campaign. This increase is incorporated in the forecasted higher marketing expense for the Group in
2H18 relative to 1H18, as advised at the Company’s Annual Meeting on 21 November 2017.
The Company is also investigating specific new product opportunities for the US market to further capitalise on the
growing brand awareness and expanded distribution.

For further information contact:

The a2 Milk Company Limited
Geoffrey Babidge
Managing Director and CEO
+61 2 9697 7000