The new A2 range might be great for fancy babies, but it ain't great for competitor A2 Milk.
Background: Bubs Australia specialises in organic toddler snacks, but its secret sauce is really its goat milk baby formula.
What happened: Now, Bubs is launching its Supreme infant formula and toddler milk with A2 protein. AKA, the protein that made A2 Milk famous. So, Bubs is kinda cutting A2's lunch.
What else: Bubs says the new Supreme product gives them access to the global A2 protein milk market. And shortly after Bubs' announcement, A2 Milk's share price dropped 1.5%... wiping off $70 million in value. Yiiikes.
💡 When assessing the growth potential of a company, investors will often look at the total addressable market (TAM) that the company is playing in.
💡 Investors will also look at the competitors who are playing in the space. In the A2 protein space, we've had A2 Milk... and A2 Milk. It's kinda just been them... until Bubs walked in 5 minutes ago.
💡 When another competitor enters the market, it means the incumbents need to share that delicious, tasty TAM with someone else. Looking forward, Bubs and A2 Milk will be battling for A2 investors' attention.
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