The partnership, which will grant both companies an equal stake in the operations, is designed to push A2's high protein milk further into the Asia Pacific region using FNP's knowledge of the nutritional goods market. A2 manufactures milk products, naturally high in the beta casein protein, which it claims is linked to a number health benefits for consumers.
The venture comes as a growing number of companies are looking to tap the growing market for functional food products within the region, as consumers turn to products that claim to have added health benefits.
FNP's Chief executive officer Geoff Babidge welcomed the partnership as an important step in cementing the group's presence within such an important market.
"The A2 joint venture represents a significant step in FNP's strategy to invest in unique and specialised nutrition segments we have identified for future growth, as well as strengthening our Australian and potentially Japanese presence," he stated.
FNP already holds a number of functional food brands in Asia including the Freedom, Thorpedo and So Natural ranges of nutrition products The project will initially be funded by FNP, with A2 taking royalties from the sale of milk.
FNP joins a number of major rivals like Friesland and Dutch group Numico in increasing its presence within the rapidly developing functional ingredients markets of Asia Pacific.
In February, Numico increased its stake in the Indonesian company Sari Husada to lift its profitability within the country's burgeoning market for functional foods.
The move followed on from a similar announcement by Friesland regarding a €30m investment into a joint venture with Australian group Warrnambool to produce probiotic ingredients.
