A2 SALES NOT
AFFECTED BY
COMPETING BRANDS
Competitors who are selling A2-branded infant formulas
in China are not affecting A2 Milk Co’s business levels,
the company says.
24 MAY 2018
NEW SAFETY
TRAINING
Fonterra and Beca have partnered to develop a
breakthrough virtual reality health and safety training
technology (VR) that lets employees navigate the
co-operative’s manufacturing and distribution sites
without the need to set foot on site.
The new technology will
place Fonterra at the
forefront of global health
and safety innovation
and is part of a business- wide
commitment to become a world
leader in risk mitigation, Fonterra
director of health and safety,
resilience and risk Greg Lazzaro
says. “The opportunities for VR
are significant. With this solution,
we can replicate the physical environment
of our sites, so staff
can undertake virtual health and
safety training in an extremely
immersive and realistic way.
That means our people can
learn about and identify potential
hazards more quickly than
ever, encouraging more engaged
employees and better workplace
safety.” Following a successful
pilot, the new VR technology will
replace a significant portion of
the hands-on health and safety
training at Fonterra that is often
costlier and less effective. Training
can be tailored to each of Fonterra’s
sites and tested through
the completion of modules. Beca
project manager Andrew Cowie
says the technology is the future
of health and safety training and
can be easily replicated in other
workplaces and training areas.
“Walmart now trains using VR,
American footballers are using it
and so is the military. Our clients
are increasingly interested in
the application of VR technologies
and the value it can add to
their businesses,” he says. “In this
case, using VR for training is ideal
as it is effective whilst being both
cost and time efficient. The reality
capture for these training tours is
done easily with a handheld camera
and the VR simulation works
via a smart phone using a simple
cardboard headset.” Lazzaro says
while it’s a novelty at first, using
VR is ultimately a safer learning
environment and enables a strong
familiarisation of sites for Fonterra
employees. “While our health
and safety performance continues
to improve, we are always looking
for ways to reduce risk to our
employees. Using VR means our
people can experience hazards in
a realistic simulated environment,
enhancing learning experiences
without being put in harm’s way.”
Implement overheating
technology to increase safety
• Implement condition
monitoring techniques
• Replace/upgrade protection
& switchgear
• Develop predictive
maintenance plans
For more information, visit
nhp-nz.com/more/overheating
77664_NZFOODTECHADV
NHP ELECTRICAL ENGINEERING PRODUCTS
0800 NHP NHP | nhp-nz.com |
77664_NZFoodTechadv_v2.indd 1 29/08/2017 4:32 PM
Share prices have dropped
after news that Nestle
is launching A2 product
Atwo under its Illuma
brand. In a statement to the NZX
and ASX, A2 says it is confident
that the investment in its brand
has established a strong consumer
franchise that will continue to
strengthen. “A2 continues to perform
strongly in each of its key markets
and in particular has not seen any
change in the growth of its China
business,” a statement says. A2’s
strong sales in China have seen the
share price quadruple over the past
year, from $3.04 this time a year
ago to a record $14.10 on March 22,
making it by far the best performer on
the benchmark NZX50 Index in 2017.
In February, the shares spiked 16%
to a then-record after A2 announced
it had more than doubled first-half
profit on strong infant formula sales
and had aligned itself with Fonterra
Cooperative Group, a deal which will
see the two companies partner up on
a range of products, including possible
a2-branded butter and cheese. “The
a2 Milk Company is the only company
engaged in the sourcing, processing
and marketing of solely A1 protein
free dairy and nutritional products
in global markets,” the company
says. “This core principle contrasts
significantly with likely new entrants
who will need to consider how to
communicate internally and externally
the benefits of a new A1 protein free
variant whilst their traditional range
of products continues to include
A1. The infant formula market in
China is vast with an estimated retail
value in the order of USD $20 billion
and volume exceeding one million
metric tonnes. There is a multitude
of brands and recent experience of
other businesses has demonstrated
how challenging it is to establish new
products in the absence of a strong
and unique consumer proposition.”
Managing director Geoffrey Babidge
said he expects continued revenue
growth in nutritional products in
Australia, New Zealand and China in
the second half, along with further
growth in fresh milk in the United
States. Gross margin will be broadly
consistent with the first half’s 49.8%,
and earnings growth in the second
half will be in the range of $35 million
to $40 million.
DAIRY SPECIAL
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/nhp-nz.com
