By JARED LYNCH
Australian infant formula makers are poised to gain a greater share of the lucrative market in China after Beijing authorities introduced tougher food safety laws.
Under the changes, which are expected to be implemented soon, manufacturers will be limited to selling only three brands in China in an effort to tighten supply chains and improve food safety.
The new laws appear to be a crackdown on Chinese manufacturers and opportunistic companies, rather than tightening the supply of foreign products, considering international producers rarely export more than three brands of formula to China.
Synlait Milk founder, Ben Dingle – who now heads the goat milk-based infant formula business Nuchev in Melbourne – viewed the changes as "very positive".
"Any brand owner that is genuinely sourcing milk [and] has its own unique brand and specific recipe will benefit," he said.
Chinese consultancy firm Chemical Inspection and Regulation Service (CIRS) said under the changes a manufacturer could not use the same formula in different brands.
The same formula means that there is no nutrient content change in different brands," CIRS said.
The new laws come after China's Certification and Accreditation Administration slashed the number of foreign infant formula brands that could be sold in the country from more than 800 to about 94, two years ago.
Back then hundreds of imported brands had flooded the market following China's 2008 infant formula scandal, in which a Chinese brand was contaminated with melamine, killing six babies and putting another 54,000 in hospital.
a2 Milk 'well placed'
The 2014 crackdown halted the growth of a2 Platinum infant formula, because its contractor, Synlait Milk, was building a new factory at the time which delayed the Chinese accreditation process.
This time around, the company is more prepared. A spokesman for a2 Milk said the company was "well placed to respond to changes in regulation" in China.
The spokesman said a2 Platinum was the only formula which contained the a2 protein exclusively, unlike other cow's milk-based formula which contained both the a2 and a1 protein, the latter of which has been linked to digestive problems.
He said a2 had patents on its product portfolio across Australia, New Zealand, China, USA and Europe, and the most recent of these patents expired in 2034.
Lei Yongjun, chairman of Beijing-based consulting firm Proper Tao Ltd, told the South China Morning Post last month that as many as 80 per cent of the "thousands of baby formula brands" sold in China could disappear after the new laws were introduced.
"Most of them would be from those [domestic] manufacturers adopting multi-brand strategies. On the other hand, big international formula manufacturers, which usually operate no more than three brands in China, will have a chance to take the market share lost from local rivals," Lei said.
Demand in China for Australian infant formula has surged in the past year. Popular brands including Bellamy's, a2 and Karicare were even stripped off Australian supermarket shelves late year and mailed directly to China or onsold to the "grey market" through online retailers.
It also triggered a partnership between vitamin maker Blackmores, which has strong brand awareness in China, and Bega Cheese, to produce infant formula.
评论
是A2又要涨了吗
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这个逻辑没看懂，限制配方奶粉的话，正规的进口渠道也应该受到影响吧
评论
谢谢分享！
评论
限制品牌 说明竞争对手变少
评论
Any brand owner that is genuinely sourcing milk [and] has its own unique brand and specific recipe will benefit,
对a2是利好。
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