Reading through the May update, it's clear to me that the only way ATM can achieve its aim of 'improving the dating of inventory' is via stock (as in can for can) exchange.
I think the bulk of the inventory write down will be from the Daigou & China channels - FIFO principle.
http://nzx-prod-s7fsd7f98s.s3-websit...884/345635.pdf
In the interest of the long-term health of the a2 brand and the medium-term trading outlook of the business, more aggressive actions to address these issues will be taken which will benefit consumers and the Company’s customers, distributors and partners.
The daigou/reseller margin support program will cease and
the Company will work with its customers and distributors to improve the dating of inventory. From a consumer perspective, this will improve the freshness of product available in store and online, and should therefore enhance the competitiveness of the a2 offer to consumers, particularly new users. This will take time to flow through to the consumer as inventory turns through the channel.