a2 milking it

The world’s biggest online shopping sales event on China’s Singles’ Day Wednesday has pushed Australia into a further shortage of baby formula. Trans-Tasman dairy company A2 Milk (ASX: A2M) said had been exploring a range of options including building its own infant formula factory in Australia to striking a partnership with a local milk processor to produce it under contract. Peter Nathan, chief executive of a2 Milk in Australia said the company was delighted its platinum brand had become desirable in China, but it needed to ensure it could meet demand. The company's revenue surged 40% to $NZ155 million ($143.5 million) in the 12 months to June 30. This was largely due to its infant formula sales soaring 445%. A2M shares closed up 15.1% for the week. We own A2M in the investment portfolio.