Wondersun launches Zhicai A2 infant formula powder 06-14-2022

On May 29, Heilongjiang Wondersun Dairy Co., Ltd. (Wondersun) announced the official launch of its new high-end product Zhicai infant formula milk powder. According to the information disclosed by Wondersun, the infant formula milk powder launched this time will benefit babies with A2 beta-casein and alpha-lactalbumin, and it also contains special ingredients to enhance nutrient absorption.

Since the beginning of 2022, Ausnutria and Beingmate have successively launched several new A2 dairy products. As of Wondersun’s launch of its new A2 dairy product, at least three milk powder companies have launched A2 dairy products in the first half of this year alone, which indicates that the dairy industry believes that current customers highly value A2 milk powder. However, some experts opine that as more companies produce A2 dairy products and as competition grows, companies may choose to make cuts during the manufacturing of their products, and high-end products may fall in quality.

Wondersun first entered the A2 dairy market in August 2020, launching a fresh milk product along with Xinchun Nutritious Milk Powder, Anli Cong Jingyue Maternity Milk Powder, and A2 Zhuge Xiaojiang's children's growth formula milk powder. In September 2021, Wonderson launched the A2 dairy product Jingmei organic milk powder. In 2021, Wondersun’s revenue exceeded the RMB 5 billion (USD 750 million) mark for the first time. At the same time, its total revenue increased by 19%, and its profit increased by 12%, achieving a historic breakthrough.

Dairy companies focus on A2 products to target lactose intolerant customers

Before A2 dairy products were introduced into the Chinese market, the industry's perception of milk protein was that its main components were whey protein and casein, the former accounting for 20% and the latter accounting for 80%. The casein in milk is mostly beta-casein, which accounts for about 30% of the total milk protein and is the main source of the amino acids present in milk. Furthermore, beta-casein can be divided into two variants, A1 beta-casein and A2 beta-casein.

When A1 beta-casein protein is present in milk, it prolongs the digestion of milk proteins and may induce an inflammatory immune response, causing symptoms such as indigestion, diarrhea and bloating in infants; these symptoms are often referred to as lactose intolerance. On the contrary, A2 beta-casein is more stable and compatible with the human digestive system, and it does not easily cause discomfort to the body.

Wondersun first A2 dairy company in China

Based on this scientific knowledge, Dr. Corran McLachlan registered A2 dairy company in New Zealand in the year 2000 and screened diary cows for those that only secreted A2 beta-casein through DNA detection technology. At first, the company mainly produced A2 milk. In 2013, the company developed an A2 infant milk powder formula and launched it in Australia and New Zealand.

Also in 2013, A2 dairy products entered the Chinese mainland market with the help of the company CSFA Holdings Shanghai Co., Ltd, which began to sell A2 infant formula to Chinese consumers. Since then, with the surge in international e-commerce businesses, the Chinese market has become the largest overseas market for A2 infant milk powder.

Statistics show that in fiscal year 2019, the revenue of A2 dairy products in the Chinese market increased by 73.6% to NZD 405 million (USD 256 million). During 2020, business from China accounted for nearly half of the total sales of New Zealand A2 infant milk powder business's total sales.

For more information, please check our Dairy Products China News.

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