No Change to Existing Synlait And A2 Milk Infant Formula Supply Arrangements
Synlait Milk Limited (NZX: SML, ASX: SM1) and The a2 Milk Company Limited (NZX: ATM; ASX: A2M) wish to clarify that the
announcements made today by The a2 Milk Company and Fonterra do not change Synlait’s exclusive infant formula supply
arrangements to The a2 Milk Company.
Synlait and The a2 Milk Company have an exclusive long-term supply agreement for the production of the a2 Platinum®
infant formula range for China, Australia and New Zealand.
This agreement was announced in August 2016 and continues to underpin the growing partnership between Synlait and The a2
Milk Company.
“Today’s announcement is great news for both The a2 Milk Company and Fonterra. It is a strategically sound decision and
while we understand it brings additional dynamics to our existing relationship, we are supportive of The a2 Milk
Company’s growth,” says John Penno, Synlait Milk’s Managing Director and CEO.
“We both remain committed to a positive, long-term partnership with The a2 Milk Company and are looking forward to
continued growth for both organisations,” said Mr Penno.
Geoffrey Babidge, Managing Director and CEO of The a2 Milk Company, adds “The arrangement we announced this morning is
about The a2 Milk Company having options to diversify sourcing, processing and manufacturing over time in light of
continued growth in demand for the company’s products.”
“Our Company recognises that Synlait has performed outstandingly under the exclusive infant formula supply arrangement
between the two companies and our on-going relationship will continue to serve us both well into the future,” says Mr
Babidge.
ENDS