a2 Milk secures distribution agreement in the US with Kroger and Albertsons

USA – The a2 Milk Company has secured a distribution agreement with the American leading retail chains Kroger and Albertsons/Safeway to sell its products nationwide in the US.

The deal expands the already existing partnership between a2 Milk and the retail chains, completing the firm’s goal of achieving national distribution in the US.

With the partnership, a2 Milk products will be sold 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.

a2 Milk® is already available at other leading retailers including Costco, Walmart, Ahold, Sprouts Farmers Market and Whole Foods Market.

Headquartered in New Zealand, the milk and infant formula company is turning to international market to drive growth and boost sales volume.

“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,” said Blake Waltrip, CEO of The A2 Milk Company US.

It builds on an earlier distribution signed with Walmart last August to expand its product reach in stores across New York, Pennsylvania, Florida, Texas, Maryland, and Washington DC.

Last year, a2 Milk embarked on US expansion which made its products available from 1,400 stores in the US Northeast.

In the same year, the company also signed an exclusive sales and distribution agreement with South Korean pharmaceutical company Yuhan Corporation.

The company is racing to expand its geographical reach in the US and is leveraging on research findings that A2 Milk may help avoid stomach discomfort in some people because it contains only the A2 protein type.

At the company’s half year results announcement, the company announced total revenue of US$417.6 million and a 52.7% gain in operating EBITA.

In addition, the company reported that the U.S. region’s momentum continued with sales growth of 114.1% in the half underpinned by increased investment in brand awareness and a stronger distribution base.