a2 milk is no longer a fighter brand but a bonafide corporate in its own right. How they play their next hand is important and some science and independent evidence wouldn’t go amiss at this point.
New Zealand’s A2 Corporation (A2C) is working some serious brand magic – in spite of the debate about the health benefits of their a2 milk.
According to the February figures released by A2C, a2 brand fresh milk sales grew by 28.3 per cent in 2013 and they now hold around 8 per cent market share in the Australian grocery channel. What makes these results even more extraordinary, is that while home brand milk has forced prices down (and many farmers out of business), a2 milk commands a premium in a high commodity market.
Both Fonterra and Parmalat, neither of them with an A2 milk product on the market, have been vocal in their doubts of the science. At this moment in time, the controversy has worked in A2C’s favour. Customer’s mistrust of large corporations makes these arguments fall on deaf ears. Look again in five years time though, when A2 grows so large that it joins the bureaucratic herds…