A2 Milk’s fortunes sour in the United States

Any hopes that A2 Milk could emulate competitor Bubs Australia’s stellar success this year in the US Market have been dashed, at least for the moment with the company receiving an adverse notification from the US Food and Drug Administration.

A2 Milk had hoped to be able to secure enforcement discretion to import infant formula products which was given to Bubs in June to allow it to help overcome a shortage of formula in the US.

The FDA authorised Bubs to air lift 1.25 million tins of Bubs formula to the US, helping drive the company to record fourth quarter gross revenue of $48.1 million, up 278 percent on the previous corresponding period.

However the FDA has now told A2 Milk that it was deferring further consideration of its request to be allowed to import into the US.

The International Dairy Foods Association has advised that similar letters have been sent to all pending enforcement discretion applicants.

The FDA gave no reason for the move nor indicated when, or whether it would consider the applications in future.

Picture: A2 Milk Company

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