The listed company has also changed its name, from A2 Corporation to The a2 Milk Company, although its stock exchange code will remain ATM.
Chief marketing officer Susan Massasso, speaking from Sydney, said market research had shown some exciting potential in the US market, namely declining milk consumption, especially by young people, and a high level of reported lactose intolerance.
The mature milk market was saturated with non-dairy alternatives like soy, rice, and almond, she said.
Those alternatives had gained a lot of traction but were low in protein and calcium.
“Although the lactose intolerance is probably over-reported, a recent survey showed that 80% of those who believe they have it would come back to milk if their problems were addressed.
“We know the attractiveness of the US market and are now working on how best to go to market.”
A US dairy industry study said that one in four adult Americans reported discomfort and intolerance symptoms after drinking milk but only a small proportion suffered from medically diagnosed lactose intolerance.
The a2 Milk Company’s experience in Australia, where it has 8% of the liquid market, was that the category could grow again when consumers had an A2 option, she said.
Even a localised or segmented market approach would require large volumes of A2 milk from genetically tested and audited A2 cows with no compromises, she said.
“That means no A1 bulls jumping the fence or risk of milk contamination.”
The Australian-based company is working with supply companies and retailers to build relationships and analyse potential markets by regions and demographics, including ethnicity.
A2 milk in the US has been tried before, before 2006 and a change of majority ownership and management of A2 Corporation, which was based in NZ then.
Massasso said the agency arrangement tried then had not worked out but valuable lessons were learned.
The level of understanding of the A1 versus A2 molecular difference and the health benefits claimed for A2 consumption was low among the US population but quite high among researchers, medical professionals, and dieticians, she said.
“Although the lactose intolerance is probably over-reported, a recent survey showed that 80% of those who believe they have it would come back to milk if their problems were addressed.”
Susan Massasso
The a2 Milk Company
Several studies were under way and opinion leaders were located in the US.
US enthusiasts for different cattle breeds, originating mainly from Europe and Africa, claim A2 exclusivity, judging by internet chat.
They include Jersey breeders, but Massasso said genetic testing showed there was more variation within breeds than between breeds.
“There are different breed averages for A2 but also a wide variation in A2 within each breed.
“We apply a high degree of integrity to A2 milk supply, as we can’t afford any A1 contamination.”
She could not say when the new launch in the US would be but the company’s recent advice to sharemarkets was that the US was the next priority market where A2 milk would most likely be launched.
