Market Overview

The a2 Milk Company™ Launches into Costco


A true natural innovation, a2 Milk® continues to build retailer
partnerships as it aggressively drives brand awareness and national

a2 Milk Company
™ today announced that it has secured exclusive
distribution of a 3-pack a2 Milk® Whole Milk to Costco stores across the

The products became available in Costco warehouses on August 6,
furthering the growth of The
a2 Milk Company
™ brand throughout the U.S.

Named one of Fast Company's Most Innovative Companies in Food in 2018,
the Australian headquartered dairy-based nutrition company that produces
easier on the digestion 100% real milk products has seen a sharp
increase in consumer demand with major retail outlets now stocking the

a2 Milk Company
™ has an outstanding partner in Costco, one of the
largest retailers in the world with an extraordinary track record of
innovation and growth," said Blake Waltrip, Boulder Colorado-based US
CEO of The
a2 Milk Company
™ "The belief in the power of our product by a
member-only and respected retailer like Costco further validates the a2
Milk® brand proposition and brings us yet another step closer to
bringing the American consumer back to real dairy."

a2 Milk Company
™ global Managing Director and CEO Jayne Hrdlicka
added: "We are excited and proud that Costco members will now have the
opportunity to add a2 Milk® to their shopping carts. Our products offer
a natural solution to Americans who report digestive discomfort from
dairy and being added to the Costco roster marks a key point in The
a2 Milk Company's
™ drive to give everyone the chance to enjoy the
nutritious benefits of real milk."

The company previously announced a major expansion in the U.S. market
into the northeast, making products available in New York, New Jersey,
Connecticut, Massachusetts, Delaware, Pennsylvania and Rhode Island. The
products are now available across the U.S.

In addition to Costco, consumers can now find a2 Milk® at more than
6,000 retail outlets in the U.S. including at major grocers Walmart,
Wegmans, Stop & Shop, Giant Carlisle, Giant Landover, Whole Foods
Market, Market Basket, Sprouts, Safeway, King Soopers, Target, Ralphs,
Publix, ShopRite and The Fresh Market.

An increase in year-over-year global sales helped fuel a 68 percent rise
in total combined annual revenue for The a2 Milk Company™ (ATM.NZ
A2M.AU), which posted a 101 percent gain in FY18 operating EBITDA in its
annual results on August 22.

Ms. Hrdlicka took over as the Company's MD and CEO in July after
spending five years running Jetstar Airways Pty Ltd., a Qantas group
multinational budget airline. Ms. Hrdlicka also serves as President and
Chair of Tennis Australia Limited.

About The a2 Milk Company

The a2 Milk Corporation was founded in 2000 in New Zealand by Dr. Corran
McLachlan after a scientific discovery showed that proteins in milk
affect people differently. Specifically, he noted that ordinary cows
produce milk contains 2 different beta-casein protein types, called A1
and A2.

a2 Milk® naturally contains only the A2 protein type and no A1.
Published research suggests that a2 Milk® may help avoid stomach
discomfort in some people.

Since its foundation the company has flourished in its home market
Australia, where it is the leading premium milk brand with ~10% of the
total supermarket milk category and more recently has become market
leader in infant formula with 32% share. This success has also
translated into the China market with 5.1% share of the lucrative China
infant formula category.

The a2 Milk Company works closely with all their U.S. farmers and all
their farms are certified by Validus for animal welfare. The a2 Milk
Company pays a premium to all its farmers when sourcing A1 protein free
milk in Australia, New Zealand, UK and the U.S.

a2 Milk® products include Whole, 2% Reduced Fat, Chocolate 2% Reduced
Fat and 1% Low Fat.

For more information on The a2 Milk Company, its products and location
availability, please visit

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