The A2 Milk Company has continued an agreement with China State Farm Holding Shanghai (CSFA Shanghai) to sell powdered infant formula in China.
State-owned CSFA Shanghai has been the exclusive import agent and partner for A2’s infant nutrition products into mainland China since 2013 and has provided, in addition to importation services, local market regulation consulting and product traceability quality control.
The current strategic arrangements between the two entities have today been extended for a further three-year period as of 6 December 2018.
An official signing ceremony was hosted today by Australian trade minister Steven Ciobo. In attendance was Zhao Qing Yong, general manager of CSFA Shanghai, and Jayne Hrdlicka, CEO of A2 Milk.
“This important relationship with the very well respected China State Farm Holding Shanghai has been growing for several years and we continue to value their very strong support of our China business with their deep local knowledge, capability and relationships within the China market,” Hrdlicka said.
“Today signals a continuation of a very successful working relationship and partnership between the two entities.”
Zhao Qing Yong added: “China State Farm is delighted and honoured to continue our relationship and partnership with a company that has achieved such unique success in the China market, as together we bring the very high-quality infant nutrition to Chinese consumers.
“This renewal signals the strength of our long-term partnership and we look forward to the future with great excitement.”
Last year, The A2 Milk Company revised its revenue forecast for the year, on the back of ‘soaring demand’ for its infant formula products in China.
In April it signed an exclusive sales and distribution agreement with South Korean pharmaceutical company Yuhan Corporation. A2 said that South Korea is an attractive market for the company due to the country’s high per-capita dairy consumption rates, strong retail market and growing e-commerce channel.
© FoodBev Media Ltd 2020