A2 Milk Company Ltd (ASX: A2M) could be facing a new threat in China, media reports indicate.
The NZ Herald reported this morning that global giant Nestle was launching its own brand of a2 milk protein products to compete with the A2 Milk Company.
For those who don’t know, a2-only milk products are thought to be healthier than regular milk products, which contain both a1 and a2 proteins. According to the a2 Milk website:
“The one big difference [in a2-only milk products] is in the type of cow.
Different cows naturally produce milk with different protein structures. Our farmers select and separate cows that only produce A2 beta-casein protein. Then, they milk them separately. All other dairy milk has a mixture of A1 and A2 proteins. Research shows that A1 and A2 are digested differently. Many people all over the world tell us they can feel the difference when they drink a2 Milk.”
The a2 Milk Company has been sponsoring and tracking research into the health effects of a2 Milk. One study on the a2 website found positive effects from drinking a2 milk versus regular milk.
A2 Milk Company shares have been flying high over the past year, rising more than 400% in the last 12 months, according to Google Finance.
However, the a2 Milk share price was down 7% to $12.13 this afternoon following the news of Nestle’s entrance into the market.
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