The A2 Milk Company has signed expanded sales agreements with Kroger and Albertsons/Safeway, completing the firm’s goal of achieving national distribution in the US.
Starting this month, A2 Milk products will begin to appear on the shelves of additional Kroger and Albertsons/Safeway stores, bringing the company’s total distribution to approximately 12,400 outlets operated by 80 major grocers across the country.
The expansion comes at a time of strong international growth for the Australian-headquartered dairy company.
As well as securing a distribution deal with Walmart last year, the company partnered with Yuhan Corporation to sell its products in South Korea.
In its half-year results published today, the firm recorded revenues of NZD 613.1 million ($421.2 million) – a 41% increase on the same period from the year before.
During the six months to the end of December 2018, A2 Milk posted sales growth in the US of 114.1%, underpinned by increased investment in brand awareness and a stronger distribution base.
Blake Waltrip, CEO of The A2 Milk Company US, said: “The A2 Milk Company couldn’t be more thrilled with the expanded partnerships that we have secured with two of the leading supermarket chains in the US.
“The acceptance of the A2 Milk innovative proposition continues to be a true validation of our products and our benefit to consumers. Signing on with Kroger and Albertsons/Safeway will allow A2 Milk products to gain additional exposure in new markets, bringing us closer to our goal of giving every American consumer the chance to enjoy the nutritious benefits of real milk.”
The company will now seek to further extend its geographic reach into other parts of the US, including the Southwest, West, Pacific Northwest and Midwest.
Ordinary cows’ milk naturally contains a mix of two main types of beta-casein proteins – A1 and A2 protein types. Research suggests that A2 Milk may help avoid stomach discomfort in some people because it contains only the A2 protein type.