Dairy company a2 Milk (ASX:A2M) has responded to media speculation about the impact of rival company Nestle launching a similar product in the Chinese market.
The company’s shares fell last week after Nestle launched an infant formula product which also uses the milk protein that a2’s brand is built on.
a2 says it’s uniquely positioned to benefit from the expansion of the milk category over time.
The company says the infant formula market in China is vast with an estimated value of $20 billion US dollars.
Shares in a2 Milk (ASX:A2M) closed 4.98 per cent lower to $11.46 on Thursday.