A2 Milk expanding its footprint in the United States

A2 Milk expanding its footprint in the United States

The a2 Milk Company (ASX: A2M) is making a significant push to increase its presence in the United States.

After a huge effort to break into the Chinese market in 2017, the company now has its sights set on the north east of the US.

The dairy producer is undertaking a dramatic expansion in the US, pushing into states including New York and Pennsylvania.

The group announced to the ASX it has been accepted into major retailers in the US and will increase its presence from 3,600 stores to 5,000.

A2 Milk is leveraging the success of its products in California and the south-east of the country. It now has reached sales levels which support expansion into new areas.

The product will be sold through a number of major retailers in the north-east region, including Safeway, H-Mart and Fairway Foods. This distribution builds on a growing presence in the natural channel in this region through stores like Wholefoods, Sprouts, and The Fresh Market.

This morning's announcement is the first big news for the milk company which had a successful year navigating the Chinese regulatory market.

In late September 2017, the group finally received import approval to ship a2 Milk's infant formula to China.

The process to bring the infant formula to China was exhaustive, including the testing of raw materials and finished product testing.

This morning's announcement has seen shares in a2 Milk jump up by 2.29 per cent to $7.59 at 10.45am AEDT.

Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.

Business News Australia

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

Employee resilience is key to business resilience
Partner Content
Employee mental health and wellbeing is top of mind for Australian businesses, and or...
Aon
Advertisement

Related Stories

Daniel Andrews calls for "ring of steel" around Sydney as Victoria records 14 new cases

Daniel Andrews calls for "ring of steel" around Sydney as Victoria records 14 new cases

After Gladys Berejiklian today declared the COVID-19 situation in...

NSW outbreak a "national emergency" as state records 136 locally acquired cases

NSW outbreak a "national emergency" as state records 136 locally acquired cases

Both NSW premier Gladys Berejiklian and Chief Health Officer Dr K...

NZ to suspend Australian quarantine-free travel for eight weeks

NZ to suspend Australian quarantine-free travel for eight weeks

The worsening COVID-19 situation in NSW with transmission into ot...

TGA grants provisional approval of Pfizer COVID-19 jab for those aged as young as 12

TGA grants provisional approval of Pfizer COVID-19 jab for those aged as young as 12

The Therapeutic Goods Administration (TGA) has provisionally appr...