A couple of weeks ago investors were worried that Nestle had invaded the Chinese market for a2 milk for children, so shares in the a2 Milk company fell sharply.
Yesterday the company revealed that it is expanding into the South Korean market sending the shares up 0.9% to $11.70.
a2 Milk said it will be selling fresh milk and infant formula in a sales and distribution deal with local pharmaceutical giant Yuhan.
Yuhan is the biggest pharmaceutical company in South Korea and the a2 company said yesterday that South Korea is an attractive market because it has high per capita dairy consumption, world-class retailers and fast-growing online sales.
Yuhan and A2 will launch a range of dairy nutritional products sourced from Australia and New Zealand, with sales expected to start between July and December this year.
A2 MIlk says Yuhan Corporation has capabilities in pharmaceuticals and consumer goods. "Yuhan Corporation is a long-established, highly credentialed and principled Korean business," A2 Milk chief executive Geoffrey Babidge said in a statement on Monday.
"We share similar values and ambitions, and with our complimentary capabilities believe that together we can build a meaningful business in Korea."
Yuhan and A2 will launch a range of dairy nutritional products sourced from Australia and New Zealand, with sales expected to start between July and December this year.
Dairy products produced under the a2 Milk Company brand will be produced by Synlait Milk.
