A2 Corporation (A2C), a New Zealand-based milk company, is seeking to accelerate investment in its UK operations to take advantage of demand for a2 branded milk products in Europe.
The company has inked a deal with Müller Wiseman Dairies (MWD) to make certain changes in structure of the A2 Milk (UK) joint venture to support the increase in market activity.
As per the terms, A2C will manage the marketing and sales of a2 fresh milk products, while MWD will continue to procure, process and distribute a2 milk.
A2C managing director Geoff Babidge said, "We have built a strong relationship with MWD through which both companies see benefits in extending the initial arrangements agreed with Robert Wiseman Dairies in 2011.
"The change in structure will enable A2C to move in a more focused way on building sales of a2™ fresh milk in the UK whilst leveraging the scale and operational capabilities of MWD."
Set to take effect from 1 January 2014, the new arrangement will provide for the on-going supply of a2 fresh milk products to existing retail outlets across the UK.
A2C will takeover MWD's shareholding interest in A2 Milk (UK) for a nominal amount, while the latter will supply the product to the company on a cost plus basis.
Changes to the UK board of directors include the appointment of William Keane, former managing director of Robert Wiseman Dairies and current chairman of Dairy UK, as a second non-executive director.
