Birth woes
OPINION: What does the birth rate in China have to do with stock trading? Just ask a2 Milk Company.
The company received its State Administration for Market Regulation (SAMR) registration from the Chinese Government last month, becoming only the second foreign sheep milk company to do so. The SAMR allows the company to export branded infant formula to China.
Spring Sheep chief executive Nick Hammond says the process to register an infant formula range in China takes a number of years to achieve and required extensive research, multiple successful trials and validation of a very high-quality production process.
He says the accreditation is a game changer for Spring Sheep as it gives them direct access to the US$17b China infant formula market.
"Up until this point Spring Sheep have only been able to sell our infant formula range through a limited number of online channels which are restricted only to an English label," he told Dairy News.
"While the brand has performed very well in this narrow channel (often cited as one of the top performers in our category) this registration gives Spring Sheep access to the full market in China."
Hammond points out that only a very small number of companies have achieved this registration.
"Spring Sheep is only the second foreign sheep milk company to ever get through this accreditation and the first that exclusively uses New Zealand sheep milk as its main ingredient."
Following the confirmation of successful registration, the Spring Sheep brand was launched at CBME in Shanghai which is one of the largest mother and baby shows in the world.
Hammond says they've had a great response from retailers and distributors.
Production has already begun under the new registration and product will be available in China later this year.
China is the biggest market in the world for infant formula. While the birth rate is expected to be relatively stable in the coming years, there is growth within both sheep/goat and premium infant formula which is where Spring Sheep is positioned.
The company's main product will be its infant formula range but it also has family products including pure sheep milk powder, growing up milk powder and also a mid-senior product range.
The natural digestibility, high quality protein and high calcium levels in New Zealand sheep milk make it a particularly good source of nutrition for several different nutritional products, says Hammond.
As part of its planned entry into China, Spring Sheep has already established a key partnership with Neptunus Foods who are the main distributor of the range in China.
Hammond says Neptunus Foods are part of a large pharmaceutical group in China and have a 17-year track record of successful distribution of imported infant formula and nutritional products.
He adds that Spring Sheep grass-fed milk is perceived as a premium and natural source of nutrition and digestibility.
"The New Zealand source is alo a very strong source of credibility as New Zealand is one of the most trusted sources of nutritional products.
"What is unique about Spring Sheep is our Zealandia breed of dairy sheep which makes up all our sheep milking flocks and is exclusive to Spring Sheep. This is the highest performing pasture-based sheep breed in the world and a very special aspect of our story."
Spring Sheep is jointly owned by SLC Investments and state farmer Pamu, formerly Landcorp.
