Infant formula producer, The A2 Milk Company Limited (ASX: A2M) today announced the structural changes in the senior leadership team of the company.
In the announcement dated 10 December 2018, the company unleashed the departure of Simon Hennessy and Michael Bracka from the role of General Manager International Development and Head of Business Development, respectively.
Simon Hennessy, General Manager International Development of a2M has been with a2 Milk since 2007, but now he has planned to take early retire from his in a2 Milk. Most recently, Mr. Hennessy has been looking into the day-to-day operations of the a2M’s UK business besides looking into the development of operations capability of a2M and new markets opportunities.
Whereas, Michael Bracka has led the company’s emerging markets business since his joining in 2017 as a Head of Business Development- Emerging Markets. On Monday, the company informed that Michael Bracka intends to take an exit from the company in December as he wishes to pursue another opportunity. Besides playing the most vital role in a2M’s emerging market business, Mr. Bracka has also been accredited for providing strong support to Peter Nathan, CEO Asia Pacific, in a transitional role in Shanghai leading the China team on the ground.
Recently, the company has acknowledged the further guidance provided by the Chinese Government on China’s new cross-border e-commerce (CBEC). The government of China is in full support for the sale of English label products in China but have a high concern on channel transparency and protection of consumers’ rights and safety.
For this purpose, the government has specified the major entities that will be considered as participants in the CBEC channel. It mainly includes cross-border e-commerce enterprises, cross-border e-commerce platforms, and China domestic service providers.
The new guidelines explain that CBEC participants can sell the English label products that comply with the laws and guidelines of the country of origin, but then they have to ensure the access of Chinese translation of the packaging label to Chinese customers. The guidance also places a pre-order requirement to take consumers consent electronically that they have understood such notification.
Moreover, the CBEC participants are required to electronically report transaction, payment and logistics information in real time to China customs. This latest policy guidance will be applicable after the three-month grace period to the implementation of new e-commerce law, slated to be effective from 1 January 2019. The three months grace period that extends to 31 March 2019 is with the view to ensure the easy transition by CBEC companies to meet the new regulatory requirements.
It seems a2M and all its trading partners will fix all the regulatory requirement by 31 March 2019 to commence the sale of its English label product in China from then.
On the news of two important exits from the organization, the a2M stock fell by 2.594% to stand at $10.140 as at 10 December 2018 (1:57 PM AEST). Over the past one year, a2 Milk’s stock has witnessed a strong performance growth of 45.80% but in the last three months a2M stock price was down by 1.61%.
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