New Zealand’s a2 Milk brand to break into Canadian market

New Zealand-based a2 Milk has entered into an exclusive licensing agreement with Agrifoods Cooperative to extend its brand into the Canadian market.

Under the agreement, Agrifoods will be responsible for the production, distribution, sale, and marketing of the company’s branded liquid milk in Canada.

The a2 Milk Company CEO Geoffrey Babidge said: “We are very pleased to form this partnership with Agrifoods through a well-structured licence agreement.

“This arrangement gives us the ability to leverage the brand development work we have already undertaken in North America and expand into the Canadian market with a well-respected partner.”

Under the partnership, the company will give Agrifoods access to its IP and marketing assets, as well as its proprietary systems.

It will also offer the Canadian firm information relating to the sourcing and processing of the company’s branded milk.

The New Zealand-based speciality dairy company will work with Agrifoods and local Canadian dairy farmers to source milk locally.

In addition, Agrifoods will use its in-market capabilities for establishing a distribution across Canada and will also fund this venture.

The Canadian company hopes to launch a wide range of a2 liquid milk products later this year in the Canadian markets.

Agrifoods Cooperative CEO Maheb Nathoo said: “This is an excellent partnership and we are excited to be able to offer a2 Milk products to Canadian consumers. The a2 Milk Company is an innovator in the dairy industry and we are delighted to be partnering with them.”

In April 2018, the a2 Milk Company expanded its footprint in the South Korean market by signing a sales and distribution agreement with Yuhan Corporation.

Established in 1926 by Ulhan New, Yuhan is a pharmaceutical company based in South Korea with annual revenue of $1.4bn.

Yuhan has established relationships with consumer goods companies, such as Kimberley-Clark and Clorox.