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New Zealand's A2 milk may be in other hands
The New Zealand A2-Milk Company may change hands, various media in the country report. The company has had a few bad years and is desperately in need of new successes, but they don't want to come. It is said that the Canadian Saputo is one of the interested parties.
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The A2-Milk Company was founded in 2000 and celebrated successes with the easily digestible type of milk that is offered. A2 milk comes from selected cows (including Jersey's) and is more digestible for lactose intolerant consumers, of which there are quite a few in Asia.
Frequently bought by Chinese tourists
The company's products were a great success, especially in export markets. A2 long-life milk and infant food were often taken by Chinese tourists and other travelers visiting New Zealand and Australia, but were also regularly exported.
Political problems in Hong Kong and the closing of the Chinese borders due to Covid-19 caused turnover and results to plummet. In a sense it is comparable to what happened with the sales of Friso infant food via Hong Kong.
The stock price will not be able to increase for a long time
The turnover of the A2 Milk Company was almost halved and a large part of the stock market value also evaporated. New management could also do little to revive the company. In recent weeks there were suddenly reports about a possible takeover. The name of the Canadian Saputo is mentioned most often. In any case, the stock price in the New Zealand NZX rose by about 7%. In the meantime, the companies involved are keeping quiet.