A2 Milk expands range to make milk powder with Mānuka honey

New Zealand-Australian company a2 Milk recently expanded its range by introducing a Mānuka honey milk powder to the Chinese, Australian and New Zealand markets.

The company aims to further expand into the adult nutritional powder market.

The product combines pure a2 Milk powder with Mānuka honey, sourced from New Zealand.

The product, packed by Fonterra New Zealand, comes in a 400g tin.

READ: The a2 Milk Company expands into South Korea

Mānuka honey helps improve the digestive system, it helps with sore throats and it can aid in healing wounds.

Combined with a2 Milk, it should create a more nutritious milk.

Most cows’ milk brands today contain a mix of both A1 and A2 proteins. All a2 Milk products come from cows hand-picked to naturally produce only A2 protein and no A1.

This is because, recent research suggests that the A1 protein in regular cows’ milk might cause discomfort in the stomach.

Recently, the company was also quick to pay a $20,000 fine by the Chinese Government for using a child in its advertising.

The advertisement breached Chinese advertising regulations, which state that children under 10 years old cannot be brand ambassadors.

The company used Chinese movie star Hu Ke and her son An Ji to promote the brand.

There were 29 other companies named by China’s advertising market regulator, in July, that breached child advertising regulations.

Other regulations in advertising in China include restrictions as to how companies can advertise baby formula.

For example, it is prohibited for an advertisement to claim that it is a full or partial substitute for breast milk.

The Chinese government aims to encourage breast feeding, therefore it enforces these rules.

 

 

 

 

Keytone Dairy completes fund raising for ASX IPO

Keytone Dairy Corporation Ltd (“Keytone Dairy”), has completed the fund raising for its proposed listing on the Australian Securities Exchange (“ASX”) via an Initial Public Offering (“IPO”). Demand for shares in KTD significantly exceeded the maximum fund raising of A$12 million (up to A$15 million with oversubscriptions) and as a result scale backs on the number of applications received have been applied.

Keytone Dairy conducted a targeted marketing campaign in Australia, New Zealand and Asia, and has attracted a number of institutional investors to its register. These include institutions already familiar with the powdered dairy market, as well as institutions with no prior investments in the sector that were attracted to the powdered dairy sector dynamics, as well as the growth potential of Keytone Dairy. Peloton Capital acted as lead broker to the IPO.

Upon listing, Keytone Dairy will have a market capitalisation of A$30 million (based on the IPO issue price of $0.20 per share). Funds from the IPO will be used primarily to:

  • Expand Keytone Dairy’s manufacturing base from its one existing facility (thus substantially expanding its production capacity),
  • Expand Keytone Dairy’s product range,
  • Expand Keytone Dairy’s existing distribution network, and
  • Develop distribution in additional geographic markets.

Bernard Kavanagh, Keytone Dairy’s Non-Executive Chairman and dairy industry veteran said, “We are extremely pleased with the response we have received to the Keytone Dairy offer from both institutional and retail investors in Australia and offshore. This is a very exciting time for Keytone Dairy and we warmly welcome all our new shareholders to the register.”

James Gong, Managing Director and Chief Executive Officer, said, “We believe that the ASX listing will accelerate Keytone Dairy’s growth. Keytone Dairy has already purchased land for two new manufacturing facilities it plans to build, in addition to its purpose built existing Christchurch facility. Once completed, these facilities will enable Keytone Dairy to both increase its capacity and expand into a number of new products, to meet customer demand. Importantly, the new facilities will enable the Company to meet demand from high-volume customers in China and other Asian countries.”

As part of the IPO, Keytone Dairy will acquire Keytone Enterprises (NZ) Company Limited (“Keytone NZ”) which is a profitable New Zealand-based manufacturer, packer and exporter of dairy and nutrition blended products, with a focus on powdered dairy products. Since 2014, Keytone NZ has been using its proprietary manufacturing facility in Christchurch, New Zealand, and has commercialised whole and skim milk powder as well as other dairy powder blends under its proprietary brands. Keytone NZ also contract-packs a range of powdered dairy products for major supermarkets, retail chains, dairy producers and other customers, in New Zealand and China, under their private label brands.

Keytone NZ’s products are exported globally, including to China, for sale in a variety of channels, including major supermarket chains, premium retail channels and online marketplaces. Keytone NZ’s customers and distribution channels include, New World, PAK’nSAVE, Countdown (Woolworths New Zealand subsidiary), Dairyworks New Zealand, Metro, Guangzhou Dept. & Friendship Store, HalsoKraft, JD.com, Tmall.com and VIP.com.