Broad market weakness has dragged the A2 Milk Company Ltd (ASX: A2M) share price lower in morning trade despite the release of a positive announcement.
At the time of writing the a2 Milk Company share price is down 1% to $13.25.
What was announced?
This morning the infant formula and fresh milk company announced the appointment of Li Xiao to the position of Chief Executive Greater China, effective from April 29.
According to the release, Li Xiao has substantial experience in building successful businesses in China across a diverse range of multinational and local fast growth consumer driven companies.
This include the likes of Mars, Nike, Burger King, and the high growth Kids Entertainment Division at Wanda Group.
Whilst he may not have experience with infant formula, the company notes that "Li Xiao has had a strong results orientation throughout his career, with a track record of agility and adapting to different organisational cultures and high growth environments."
The company's CEO and managing director, Jayne Hrdlicka, was very happy to have appointed Li Xiao and believes he is a great fit for a2 Milk Company.
She said: "We are delighted to have such an entrepreneurial and accomplished executive joining The a2 Milk Company team. Li Xiao brings with him a deep and long track record of excellent business results achieved by finding innovative pathways to building businesses across multiple consumer categories in China. He will be a great addition to the team and a strong fit with our unique culture as a company."
When he commences with the company on April 29 his focus will be on maximising the significant opportunities that the China market presents for the company. This includes delivering against its existing well-developed strategy and preparing for future growth opportunities across Greater China.
Should you invest?
I think this is a great appointment and believe the company's China operations are in safe hands with Li Xiao.
Overall, I continue to believe a2 Milk Company would be a great long-term investment, along with Bellamy's Australia Ltd (ASX: BAL), and would choose it ahead of smaller and unproven rival Bubs Australia Ltd (ASX: BUB).
