A2 Milk’s US boss Blake Waltrip quits company, sparking leadership deck shuffle

Blake Waltrip is leaving A2 Milk after seven years running its US business and the company’s ANZ boss, Kevin Bush, will take his place.

A2 Milk US chief executive Blake Waltrip leaves the company after almost meeting its $100m annual sales target.

A2 Milk’s US boss has left the company after a rollercoaster tenure, ranging from fending off copycats from Oklahoma to a torturous battle with the US Food and Drug Administration over exporting infant formula to America.

Blake Waltrip leaves A2 after seven years. During that time he has edged closer to delivering a $100m annual sales target that former chief executive Geoff Babidge set for the company’s US operations three years ago.

At the company’s half-year results in February, A2’s American sales soared 61.8 per cent to $52.4m while the division slashed its loss to $12.2m from $16.4m.

A2’s general manager for its ANZ operations, Kevin Bush – who recently launched the company’s lactose-free milk range – replaces Mr Waltrip. Chief strategy officer Eleanor Khor will assume Mr Bush’s ANZ duties.

A2 chief executive David Bortolussi said Mr Waltrip successfully established the company’s brand in the US.

“We thank Blake for his substantial contribution to the company over the past seven years,” Mr Bortolussi said.

“We wish Blake all the best in the next stage of his career. I congratulate Kevin and Eleanor on their new roles and believe their leadership will make a difference to the growth and performance of our USA and ANZ businesses going forward.”

Kevin Bush will move to America to run A2’s US business. Picture Aaron Francis

Last November A2 finally gained approval from the US FDA to import infant formula to America to help ease a nationwide baby food shortage.

Despite lodging an application last May, smaller companies, including Care A2 Plus and Bubs, gained approval months before A2.

Although the company initially attracted sceptics around its health claims derived from the A2 beta casein protein, A2 has triggered a range of copycats – ranging from global giants Nestle and Mead Johnson to Braums, a family-owned business based in Oklahoma and subject to legal action from A2.

Executive decks have also been shuffled at A2’s Mataura Valley Dairy business, which operates a factory in New Zealand. The company spent $NZ268.5m ($251m) on securing a 75 per cent stake in Mataura, which has operated at a loss since it was commissioned in 2018.

MVM chief executive Bernard May will leave the company and John Roberts has been appointed his successor on an interim basis. Mr Roberts will report to A2’s chief supply chain officer, Chopin Zhang, with a focus on developing the company’s infant formula manufacturing capacity.

It comes two weeks after a war of words erupted between A2 and its contract manufacturer, Synlait, which is listed on the ASX and New Zealand Stock Exchange.

Synlait warned investors it could post a full-year loss of $NZ5m, indirectly naming A2 Milk as the cause of its financial woes.

But Mr Bortolussi said while A2 had lowered forecast production guidance for English label infant formula, it was offset by strong growth in China label products.

“A2 Milk Company confirms that there is no material change to its FY23 outlook as confirmed at the time of the announcement of its 1H23 results on February 20, 2023,” he said.

A2 shares had slumped 1.5 per cent to $5.27 in early afternoon trade on Wednesday versus a 0.2 per cent dip across the broader sharemarket.