Fueled by increased investment in national distribution growth and expanded relationships with Kroger, Walmart, Costco and Albertsons, The a2 Milk Co. U.S. posted record U.S. sales of $23.2 million for the fiscal year ending June 30, 2019. The sales gain represents a 160% increase for the Boulder, Colo.-based company.
Founded in New Zealand in 2000, a2 Milk also posted record financial results companywide, with total revenue of $1.3 billion (NZ$), up 41.4% ending June 30, 2019.
“We continue to invest aggressively in growth to take advantage of the expanding popularity of our unique and innovative products among American grocers and consumers nationwide,” Blake Waltrip, CEO of The a2 Milk Co. U.S, said in a release.
“To solidify our first-mover advantage across this soaring market segment, we will continue to increase our levels of brand investment to build awareness, expand sales velocity and spur overall growth,” Waltrip continued, adding that the latest results show that U.S. revenue has risen by over 100% during each of the past three years, and 200% in the back half of fiscal 2019 versus the same period the prior year.
By the close of its fiscal year, The a2 Milk Co. U.S. had expanded its network by 118% to more than 13,100 stores, including the recently added Albertsons-owned Vons stores in Southern California, as well as select Costco and Walmart locations, Ahold, Albertsons, Food Lion, The Fresh Market, HEB, Kroger, Market Basket, Meijer, Publix, ShopRite, Sprouts, Target, Wegmans and Whole Foods Market.
U.S. brand awareness for a2 Milk, which comes from cows that naturally produce only the natural A2 protein and no A1, is growing. Published research suggests that a2 Milk may help avoid stomach discomfort in some people because the milk is sourced to contain only the A2 protein type and no A1.
The a2 Milk Co. works with local U.S. dairy farmers to identify cows that naturally only produce the A2 protein type and process their milk separately, making it possible for those with sensitivities to enjoy 100% real cows’ milk. The company pays a premium to its farmers, and all U.S. farms are certified by Validus for animal welfare.