The a2 Milk Company is expanding its Asian footprint through a new exclusive sales and distribution agreement with a large pharmaceutical company in South Korea.
Under the agreement, the company's branded products will be promoted and distributed in South Korea by Yuhan Corporation, a leading pharmaceutical company in South Korea with an annual revenue of around $US1.4 billion.
Yuhan also has capabilities in consumer goods and has established relationships with leading international companies including Kimberley-Clark and Clorox Corporation, a2 Milk said.
South Korea is an attractive market given its high per capita dairy consumption, world-class retailers and a fast-growing e-commerce channel, according to the company.
“Yuhan Corporation is a long established, highly credentialed and principled Korean business. We share similar values and ambitions, and with our complimentary capabilities believe that together we can build a meaningful business in Korea,” a2 Milk CEO Geoffrey Babidge said.
Yuhan's CEO and president Lee Junghee said, “Aligning both our companies’ histories and values to promote growth through continuous research and innovation, Yuhan Corporation and The a2 Milk Company will together launch a range of dairy nutritional products with only the A2 beta casein protein type that Koreans can consume for their health and well-being.”
The a2 Milk Company product range will be sourced from Australia and New Zealand, with nutritional products produced by its key supply partner, Synlait Milk. Initial sales are expected to commence during the second half of calendar year 2018.
The company also announced it had launched new a2 Platinum infant formula products recently, and would to shortly introduce a “unique and premium” a2 Milk powder product blended with New Zealand sourced Manuka honey.
