"Bye Baealgi"… Seoul Milk to Fully Switch to 'A2 Milk' by 2030

A2+ Milk Launch... Premium Milk Following 'Na100%'
Removes Protein Causing Stomach Pain to Solve Lactose Intolerance
Goal to Replace 100% with 'A2 Raw Milk' by 2030

Seoul Milk is launching a new product, 'A2 Milk,' which removes the protein that causes stomach discomfort, aiming to create new consumer demand. Seoul Milk plans to fully switch to 100% 'A2 raw milk' by 2030, allowing consumers who often experience digestive issues after drinking milk to enjoy it, and to firmly establish the perception that "Seoul Milk is A2."

On the morning of the 15th, Seoul Milk Cooperative held a launch event for 'A2+ Milk' at the Grand Hyatt Seoul in Yongsan-gu, Seoul, introducing the new product and announcing its future vision.

Next-generation premium ‘A2+ Milk’ launched... Comfortable consumption even for lactose intolerance

Seoul Milk 'A2+ Milk' 3 Types

A2 milk is a premium milk that has gained word-of-mouth on mom cafes and other platforms as 'easy-to-digest milk' and 'milk without stomach discomfort.' Milk protein consists of casein and whey, with casein accounting for about 80%. Among the casein proteins, the gene types of 'beta (β) casein' are divided into 'A1' and 'A2.' A1 protein releases up to four times more of the allergy-causing substance 'beta-casomorphin-7 (BCM-7)' than A2 protein, increasing the likelihood of causing stomach discomfort and intestinal inflammation upon consumption.

Regular milk typically contains both A1 and A2 proteins. However, A2 milk is collected only from cows with the A2 protein gene type, containing only A2 protein. A2 protein has a structure similar to human breast milk, which is known to have good absorption and to be effective in improving digestive disorders. It is also reported to generate glutathione, an essential antioxidant for brain development, and to enhance immune function.

Jinseop Moon, Chairman of Seoul Milk Cooperative

The newly introduced A2+ milk is also produced exclusively at A2-dedicated farms by milking only cows with the A2 genotype, containing only A2 protein. Seoul Milk conducts four stages of A2 testing?from farm milk collection vehicles, factory production lines twice, to the finished product?to ensure 100% A2 milk collection. Additionally, Seoul Milk emphasizes its differentiated core values of first-grade somatic cell count and 1A-grade bacterial count raw milk, while using the EFL (Extended Fresh Life) method to remove bacteria and microorganisms one more time, maintaining freshness for a longer period.

Professor Kim Na-young of the Department of Gastroenterology at Bundang Seoul National University Hospital, who presented on the effects of A2 milk on the body, stated, “We confirmed that A2 milk can help improve digestion and increase beneficial gut bacteria in Koreans experiencing mild to moderate digestive discomfort after milk consumption,” adding, “We will further verify the various functionalities of A2 milk by expanding the test groups in the future.”

Dual challenges of low birthrate and tariff elimination... Responding with premium products and new consumer creation

Seoul Milk is determined to overcome the recent crisis faced by the dairy industry and strengthen its market share by leading with A2 milk. Seoul Milk announced plans to fully switch all raw milk used in its products to A2 raw milk. Last year, out of the total 1,900 tons of raw milk produced by Seoul Milk, only 50 tons were A2 raw milk, accounting for about 3% of total production.

However, the plan is to convert all farms within the cooperative to A2-dedicated farms and replace all raw milk with A2 raw milk by 2030. Choi Kyung-chun, Standing Director of Seoul Milk, who presented the vision, said, “62 out of 100 Koreans suffer from lactose intolerance, which causes difficulty digesting dairy products,” adding, “Seoul Milk aims to create new consumption from those who have felt discomfort in consuming dairy products by leading with A2 milk and to take the lead in dairy development through this.”

Recently, the domestic dairy industry faces dual challenges: a decrease in consumption due to low birthrate and competition with imported milk following the elimination of milk tariffs under free trade agreements (FTA). According to Statistics Korea, the total fertility rate in South Korea last year was 0.72, down 0.06 from 0.78 in 2022. As the main consumer base shrinks, the annual per capita consumption of white milk decreased from 28.1 kg in 2012 to 26.2 kg in 2022, and retail sales of white milk, which were 2.4651 trillion KRW in 2020, dropped 12.6% to 2.1531 trillion KRW last year. Furthermore, milk tariffs will be eliminated by 2026 under the FTA. Currently, South Korea applies a 7.2% tariff on U.S. dairy products, which will gradually decrease to 4.8% this year, 2.4% next year, and 0% by 2026.

However, Seoul Milk has relatively performed well, surpassing 2 trillion KRW in annual sales for the first time since the cooperative's founding in 1937. Last year, Seoul Milk's sales reached 2.1117 trillion KRW, a 7.3% increase from the previous year, and operating profit rose 15.1% to 54.5 billion KRW. Seoul Milk explained, “Despite the challenging market environment, launching trendy products using high-quality domestic raw milk, expanding various sales channels, and consistently gaining consumer trust by emphasizing the excellence and distinctiveness of the 'Na 100%' milk brand were key factors.”

Standing Director Choi emphasized, “In response to low birthrate, aging population, and the increasing presence of imported sterilized milk, A2 milk will be a good solution,” adding, “By fully switching to A2 milk and supplying premium milk at reasonable prices, we will practice our corporate philosophy of making the world healthier through milk.” A2+ milk will be launched in three sizes: 180 ml, 710 ml, and 1.7 L. The 710 ml product is priced at 3,580 KRW in large supermarkets, which is smaller in volume and more expensive compared to the existing 'Na 100%' milk 1,000 ml (2,980 KRW). However, Seoul Milk plans to reduce the unit price through mass production in the future.

This content was produced with the assistance of AI translation services.