The a2 Milk Company expands in the US, grows to 5,000 stores | Finance News Network

The a2 Milk Company expands in the US, grows to 5,000 stores

Company News

by Kathy Skantzos

Dairy and infant formula company The a2 Milk Company (ASX:A2M) has announced it is expanding the a2 Milk brand across the north-east region of the United States from this month.

As a result of the expansion, a2 Milk will increase its range to approximately 5,000 retail stores across the US from January, up from 3,600 stores.

The company said it has been focusing on sales since entering the US market and is ready to expand its footprint on a region-by-region basis now that it is achieving sustainable sales targets in California, the south-east and select retail chains.

Distribution of a2 Milk has been accepted in a range of major retailers in the north-east of the US, which includes New York and is home to about 60 million US consumers, accounting for approximately 20 per cent of the total milk volume in the US.

A marketing campaign will support the expansion, with the increase in marketing spend incorporated in the second half of FY2018.

Shares in The a2 Milk Company (ASX:A2M) closed 6.5 per cent higher yesterday at $7.42.
 

Kathy Skantzos

Finance News Network
Kathy presents the Market Outlook and ASX company news. She joined FNN in September 2017. She has been in print and online journalism for over 9 years. She also worked in corporate communications.