The a2 Milk Co. has reached expanded sales agreements with supermarket chains Kroger and Albertsons/Safeway. These additions complete the company’s goal of achieving national geographic distribution in the U.S. market.
Starting this month, a2 Milk branded products will begin to appear on the shelves of additional Kroger stores and Albertsons/Safeway stores, bringing the company’s total distribution to approximately 12,400 outlets operated by 80 major grocers across the country. a2 Milk is already available at other retailers including Costco, Walmart, Ahold, Sprouts Farmers Market and Whole Foods Market. Sales velocities in both new and existing accounts have accelerated and total store distribution has increased by almost 45 percent since November 2018.
“The a2 Milk Co. couldn’t be more thrilled with the expanded partnerships that we have secured with two of the leading supermarket chains in the U.S.,” said Blake Waltrip, CEO of The a2 Milk Co. U.S, based in Boulder, Colorado. “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.”
This expansion comes at a time of international growth for the Australian headquartered dairy nutrition company. At the company’s half year results announcement, it announced total revenue of $613.1 million (NZ $) and a 52.7 percent gain in operating EBITA. In addition, the company reported that the U.S. region’s momentum continued with sales growth of 114.1 percent in the half underpinned by increased investment in brand awareness and a stronger distribution base.
The a2 Milk Co. now will seek to further extend its geographic reach into other parts of the U.S. including the Southwest, West, Pacific Northwest and Midwest as well as throughout its more established markets in California, the Northeast and the Southeast.
Other major grocers carrying a2 Milk products include Wegmans, Food Lion, Meijer, Target, Publix, ShopRite, HEB and Market Basket.
Ordinary cows’ milk naturally contains a mix of two main types of beta-casein proteins, A1 and A2. Published research suggests that a2 Milk may help avoid stomach discomfort in some people because it contains only the A2 protein type and no A1.
The a2 Milk Co. works with local U.S. dairy farmers to identify cows that only naturally produce the A2 protein type and process their milk separately, making it possible for some with sensitivities to enjoy real cows’ milk. The a2 Milk Co. pays a premium to all its farmers and all U.S. farms are certified by Validus for animal welfare.
The a2 Milk Corp. was founded in 2000 in New Zealand by Dr. Corran McLachlan.