CANADA – The a2 Milk Company has entered into an exclusive licensing agreement with Agrifoods Cooperative for the production, distribution, sale and marketing of a2 Milk branded liquid milk for the Canadian market.
The arrangement will give the New Zealand-based milk processor the ability to leverage the brand development work it has already undertaken in North America and expand into the Canadian market.
Under the arrangement, The a2 Milk Company will provide Agrifoods with access to its IP and marketing assets as well as its proprietary systems and know-how relating to the sourcing and processing of a2 Milk brand.
The company will also work with Agrifoods and local Canadian dairy farmers to source milk locally. It is expected that a range of liquid milk products will be launched later in the year.
“We are very pleased to form this partnership with Agrifoods through a well-structured license agreement,” CEO of The a2 Milk Company, Geoffrey Babidge, said.
As part of the deal, Agrifoods will leverage its substantial capabilities in-market to establish distribution across Canada and has primary responsibility for funding this venture.
“This is an excellent partnership and we are excited to be able to offer a2 Milk products to Canadian consumers,” said Maheb Nathoo, CEO of Agrifoods Cooperative.
“The a2 Milk Company is an innovator in the dairy industry and we are delighted to be partnering with them.”
In December last year, The a2 Milk Company also entered into an exclusive distribution agreement with Yuhan pharmaceuticals to launch the a2 Platinum infant and toddler nutrition range in South Korea.
The a2 Platinum for the South Korean market is sourced exclusively from New Zealand. The launch of a2 Platinumin South Korea follows the recent launch of a2 Milk fresh milk, which is also exclusively sold and distributed by Yuhan.
As part of a 2 Milk’s global supply strategy, the dairy company has also extended its comprehensive manufacturing and supply arrangements with Synlait Milk.