New Zealand’s a2MC to enter South Korean market

New Zealand-based dairy cooperative The a2 Milk Company (a2MC) has 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 an annual revenue of $1.4bn. Yuhan has established relationships with consumer goods companies, such as Kimberley-Clark and Clorox.

Under the new partnership, Yuhan will be responsible for promoting and distributing a2MC’s branded products in South Korea. The sales of these products are expected to begin from the second half of this year.

Products to be introduced in the South Korean market include nutritional products produced by its key supply partner Synlait Milk.

The a2MC managing director and CEO Geoffrey Babidge said: “Yuhan Corporation is a long established, highly credentialed and principled Korean business.

“We share similar values and ambitions, and with our complimentary capabilities we believe that together we can build a meaningful business in Korea.”

The dairy cooperative anticipates that the South Korean market would offer a better opportunity for its products because of high per capita dairy consumption in the region, as well as a fast-growing e-commerce channel.

Yuhan president and CEO 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.”

In addition to its expansion into the South Korean market, a2MC will be expanding its nutritional product portfolio with a2 Milk powder product, which is said to have blended with  Mānuka honey sourced from New Zealand, and two new a2 Platinum products.