The a2 Milk Co., which has its U.S. headquarters in Boulder, Colorado, reported record U.S. net sales of $23.2 million for the fiscal year ended June 30, a 160 percent rise driven by increased investment in distribution growth and brand awareness, according to the company.
“We continue to invest aggressively in growth to take advantage of the expanding popularity of our unique and innovative products among American grocers and consumers nationwide,” said Blake Waltrip, CEO of The a2 Milk Co. U.S. “Our strong results prove that we have firmly established ourselves as America’s pioneer and leader of A2 protein milk products.”
“To solidify our first-mover advantage across this soaring market segment, we will continue to increase our levels of brand investment to build awareness, expand sales velocity and spur overall growth,” Waltrip said, adding that the latest results show that U.S. revenue has risen by over 100 percent during each of the last three years and 200 percent in the back half of fiscal 2019 vs. the same period the prior year.
By the close of its fiscal year, the company’s U.S. business had gained national distribution, expanding its network by 118 percent increase to more than 13,100 stores. In addition to adding Vons in Southern California, the company expanded its relationships with Kroger, Walmart, Costco and Albertsons/Safeway. While distribution continues to grow at pace and still represents significant upside, the company says it is doubling down on its focus to drive in-store consumer takeaway.
Recent research data also indicates the U.S. brand development is strong. The a2 Milk brand is successfully growing category consumption, sourcing volume across multiple dairy segments and trading up consumers from conventional milk. The brand is also experiencing high levels of consumer loyalty. The company remains confident of the opportunity for continued growth in the U.S. given the high consumer propensity for premium wellness products and strong retailer support.
Consumers can now find a2 Milk at grocery stores across the country, including Ahold, Albertsons/Safeway, Food Lion, The Fresh Market, H-E-B, Kroger, Market Basket, Meijer, Publix, ShopRite, Sprouts, Target, Wegmans and Whole Foods Market, as well as select Costco and Walmart locations.
Published research suggests a2 Milk may help avoid stomach discomfort in some people because the milk is sourced to contain only the A2 protein type and no A1. The a2 Milk Co. works with local U.S. dairy farmers to identify cows that naturally only produce the A2 protein type and process their milk separately, making it possible for those with sensitivities to enjoy 100 percent real, cows’ milk. The a2 Milk Co. pays a premium to its farmers and all U.S. farms are certified by Validus for animal welfare.