[3 August/NZ Herald]

Fonterra and The A2 Milk Company have joined together to offer a jointly branded A1-free milk to New Zealand consumers. Fonterra had resisted the a2 Milk concept until now. The two companies have moved on from historic differences and formed a joint venture. They launched their first jointly branded product this week. Most cows carry both A1 and A2 proteins but a2 Milk specialises in A1-free milk from selected cows. A2 Milk’s CEO, Jayne Hrdlicka, said the relationship was great for both sides. A2 started off as a technology and intellectual property company that sold licences around the world, but then became a company that developed the product and built its own markets. It meant buying back the licences it had sold. According to analysts, promoting A2 milk could detract from the value of regular milk. Fonterra Acting Sales Director, Grant Watson, said there were many positive opportunities and they were looking to the future.