Creamy Goodness

A2 Dairy Products Australia

Proudly Australian made, additive and permeate free, A2 Milk is no ordinary milk; it comes from specially selected herds of cows that produce A2 beta-casein protein rather than A1. “We have grown tenfold in the last five years,” says the CEO of A2 Dairy Products Australia, Peter Nathan. “The reason for that is we have a genuine point of difference. We would argue that most competitors have a very minimal point of difference relative to private label.”

Naturally Better

Have you ever experienced a pain in your stomach after drinking milk? You are not alone. Thousands of consumers are searching for dairy milk that they can drink without experiencing any discomfort afterwards. Statistics show that 25 per cent of people experience some degree of discomfort after drinking milk. “Only around four or five per cent of people are medically diagnosed as being lactose intolerant so the rest we believe are likely to be reacting to the A1 protein in their milk,” explains Mr Nathan. Over the years, A2 Milk has received hundreds of rave reviews and thank you letters from satisfied customers. “Consumers have voted with their feet and certainly have recognised the benefits of A2 to them personally.”

Ensuring that there is supply chain integrity is a core issue that A2 Milk takes very seriously. Historically, all dairy cows produced only the A2 beta-casein protein. A natural genetic mutation occurred in European herds several thousands of years ago and many cows started producing A1 protein. A2 Milk selects cows that naturally produce only the A2 protein by performing a simple and non-invasive DNA test. A sample hair is taken from the tail of each cow to be carefully analysed. Consumers can be assured that A2 Milk is a pure, all natural product and not the result of any kind of genetic engineering or modification.

Under the expert eyes of Australian farmers, who receive a premium price for the milk, segregate herds of A2 certified cows produce the liquid gold that has made A2 Milk a household name. “We have farmers predominately in Queensland, NSW and Victoria and we currently have four manufacturing facilities,” explains Mr Nathan. Indeed, when the supermarkets went through the dairy price-cutting scheme, A2 Milk was unaffected, as the milk does not come from ordinary cows. A2 Milk has customers young and old reaching for another glass. There have been over 100 studies on A2 Milk and the brand is receiving a lot of support from academics and the healthcare professional community as a result of the findings.

Mr Nathan has been with A2 Milk since 2006 when the brand was successfully relaunched in Australia following a joint venture between Freedom Foods and A2 Corporation. Today A2 Milk is more popular than ever here in Australia. Mr Nathan acknowledges how important teamwork has been to the success of the A2 Milk, which is now one of the top SKUs in the entire supermarket field. “It’s been a rewarding path providing people with such a healthy alternative.”

Delicious Range

Have you ever been asked to pick up some milk on the way home only to spend what feels like forever staring at the bewildering array of choices in the dairy aisle? A2 Milk has developed a select range of quality products that make the decision of what to buy for your tea, coffee and cereal a fuss free experience.

With a deliciously refreshing taste, Full Cream A2 Milk is a real winner from the range. At the 2011 Royal Melbourne Show, this creamy creation was awarded a gold medal. “The full cream milk is still our best selling product and is doing particularly well,” says Mr Nathan. The company’s Long Life Full Cream Milk is packed in sterile tetra packs, preserving all the wholesome A2 goodness and taste for up to nine months without refrigeration. Customers looking for a lighter option will love Light A2 Milk, with just 1.3g of fat per 100 ml, and No Fat A2 Milk. Just one 250ml glass of No Fat A2 Milk provides up to 46 per cent of your daily calcium needs, making it a smart choice.

While A2 Milk is predominately a fresh milk player at this point, it is steadily expanding into other dairy categories. There is already a delicious A2 Jalna Natural Low Fat Creamy Yoghurt available in 1 kg tubs at Coles and leading independents. This naturally pot set yoghurt contains no colours, gelatines, gluten, starches, artificial sweeteners, cane sugar or food acids, just A2 Milk and bowel friendly aBc cultures. It has a pleasing tanginess and is not overly sweet like so many other yoghurts on the market.

Healthy Growth

The milk industry has come under the media spotlight in recent times. When the permeate scandal broke last year, many players in the industry quickly made the switch to manufacturing permeate free products. The shocking news had a huge impact on consumers, however, with many feeling ripped off and misled by several major milk brands. Permeate is a cheap, watery by-product of milk processing which some brands were using to dilute milk without disclosing the fact to customers. Maintaining an honest approach and providing premium quality products has been integral to establishing trust in the A2 brand. “We’ve always been permeate free.”

In January this year a high demand for infant formula in China lead to a shortage here in Australia. The Chinese market recognises the premium quality of Australian milk and, having had a melamine-tainted milk scandal back in 2008, many consumers have lost faith in local dairy manufacturers. This market growth and the unique A2 proposition presents A2 milk with an exciting opportunity for further growth. “From a global perspective A2 Corporation is committed to launch an infant formula into China and has also just launched fresh milk into the UK as part of a joint venture.”

As the plan proposition continues to build momentum, A2 Milk is planning to continue on a very strong growth path. “In past times we’ve had some issues with meeting consumer demand given the rapid growth but we’ve certainly overcome that,” and the level of customer engagement the brand receives in the supermarkets has been pleasing. “From our perspective it’s really about ensuring that consumers have access to what is the very best fresh milk proposition that they can get.”

A2 Milk has developed into a prominent industry player with a distinct competitive edge. Communicating the benefits of A2 Milk to consumers over ordinary milk in an engaging and compelling manner has been an integral part of the brand strategy. “We believe that consumers should try it for themselves and see if it works for them personally and if it does we’d love them to continue to interact with our brand.” Put A2 Milk to the test the next time you make a milkshake, bake a cake, have a bowl of cereal or sit down with a hot cuppa, because the truth is in the tasting. Milk has never been so good.

Making Sense of Management

Management is the art, or science, of getting things done through people. Sounds fairly straightforward – except for the fact that people are not robots waiting to do our bidding. People have their own minds, motivations, and goals. So how do managers keep operations – and the people behind them – running as planned?

December 16, 2018, 6:43 AM AEDT