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Speaker 1: You're listening to a Shearesise podcast. A lot of other

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Speaker 1: developed countries are thinking about plant milk. Is that something

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Speaker 1: that you would either consider or you're going to stick

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Speaker 1: to unitting at the stage.

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Speaker 2: So from our point of view, like we're very much

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Speaker 2: focused on cow's milk or bovine milk that's naturally a

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Speaker 2: one protein free That's what our whole purpose is all

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Speaker 2: about in partner in the future of dairy for good.

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Speaker 2: So that's that's our kind of core focus. It's not

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Speaker 2: to say that we'd never do any plant based products.

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Speaker 2: Is just not a focus of ours, just one bit

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Speaker 2: of context of a plant based alternative. So I know

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Speaker 2: it's it has become quite popular over the years, but

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Speaker 2: it's still only about ten to fifteen percent of the

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Speaker 2: of the category overall in Australia, New Zealand, the US

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Speaker 2: and even China as well. And in fact, I think

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Speaker 2: we're starting to see some consumer trends back towards whole

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Speaker 2: foods and dairy, like in the US for example. And

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Speaker 2: I know it can be a little bit controversial in

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Speaker 2: the US, but the Maha movement, I think that's been

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Speaker 2: a cut this behind it as well. But there's definitely

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Speaker 2: consumer trend towards it, where plant based alternatives are actually

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Speaker 2: in decline in the US and areas back in growth,

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Speaker 2: which is great. And the specialty category that we're in,

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Speaker 2: the more premium aspect, is in double digit growth, which

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Speaker 2: is fantastic.

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Speaker 1: Yes, because I think you're looking at to be profitable

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Speaker 1: in the US and twenty twenty six now.

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Speaker 2: We've invested a lot in the US over the years.

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Speaker 2: Well before my time the company entered the market back

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Speaker 2: in twenty fifteen, I think it was heavy investment in

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Speaker 2: brand development and positioning and distribution, etc. By the time

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Speaker 2: I joined, we were losing over thirty million dollars a year,

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Speaker 2: and this year we're close to break even and we've

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Speaker 2: declared to the market that we intend to be break

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Speaker 2: even in FI twenty seven. So it's come a long way,

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Speaker 2: and I think there's more opportunity in liquid milk and

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Speaker 2: innovation around that. We're growing rapidly, reported sales growth in

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Speaker 2: the HAALF of twenty nine percent. In the US. There's

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Speaker 2: sort of more uncertain but potentially bigger opportunity for US,

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Speaker 2: as in the infant milk category, where we're currently going

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Speaker 2: through FDA approval to bring our product into the US.

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Speaker 1: Market, So you're heavypdo for the liquid milk.

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Speaker 2: For the adult milk, yeah, it's a more straightforward process

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Speaker 2: to be manufacturing liquid milk locally for the market, but

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Speaker 2: the infant milk formula, for very good reasons, is quite

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Speaker 2: a It's a much bigger process to go through.

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Speaker 1: Investing involves the risk you might lose the money you

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Speaker 1: start with. We recommend talking to a licensed financial advisor.

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Speaker 2: We also recommend reading product disclosure documents before deciding to invest.