The A2 Milk Company is expanding into South Korea after signing a distribution deal with pharmaceutical giant Yuhan Corporation. expansion
A2 says South Korea is an attractive market because it has high per capita dairy consumption, world-class retailers and fast-growing online sales.
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.
Shares in A2 Milk were 8.5 cents, or 0.7 per cent, higher at $11.68 at 1225 AEST on Monday.
“Yuhan Corporation is a long established, highly credentialed and principled Korean business,” a2 managing director Geoff Babidge said. “We share similar values and ambitions, and with our complimentary capabilities believe that together we can build a meaningful business in Korea.”
The milk marketing firm first tried to enter South Korea with an exclusive distribution deal with Purmil, formerly Lotte Dairy, to sell fresh A2 milk in the Asian nation in 2007. Purmil chose to pull A2 milk from the Korean market in late 2008 year, prompting a2 Milk to sue in 2010. A settlement was eventually reached in 2011.
Separately, a2 said it was about to introduce a new powder product blended with New Zealand sourced Manuka honey.
That comes the same day Manuka honey health products maker Comvita said it may face a takeover with an unnamed third party undertaking due diligence, while also downgrading annual earnings guidance as wet weather weighed on honey production.
Source: Yahoo New Zealand
