12 Mar 2020

A2 Milk expands North American footprint with licensing deal

2:16 pm on 12 March 2020

Speciality dairy company A2 Milk is expanding into Canada through a venture with the local co-operative Agrifoods.

Serving fresh milk in a glass vase on a wooden table

Photo: 123RF

A2 will give Agrifoods access to its intellectual property and marketing systems, as well as work with it to get the necessary milk from Canadian dairy farmers.

Chief growth and brand officer Susan Massasso said it was part of the company's plans to expand its North American market.

"It is an extension of the learnings and marketing assets that we've established in the US, but it is an exclusive licensing agreement with Agrifoods Co-operative. So in a sense we're leveraging the learnings, we're leveraging the existing marketing assets and Agrifoods are thankfully expanding our brand for us in North America.

"It allows us to expand our footprint in North America without being a distraction to our core business with our core team."

She said it was similar to the licensing agreement it had with Fonterra in New Zealand.

As a licence owner, the company would benefit from royalties.

Agrifoods has more than 2700 members.

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