Over the last four years the A2 Milk Company Ltd (ASX: A2M) share price has been one of the best-performers on the Australian share market.
During this time, the company's shares have risen from 66 cents all the way up to $14.36.
This means that investors would have earned 21.7x their money if they bought its shares four years ago and held onto them until today.
To put that into context, a $20,000 investment in a2 Milk's shares on July 3 2015 would now be worth a staggering $435,000 today.
Because of this, it is no wonder that many investors are busy scouring the market for the next a2 Milk Company.
Two companies that investors appear to believe could be the next a2 Milk Company are listed below. Are they the real deal?
Bubs Australia Ltd (ASX: BUB)
Bubs is an infant formula and baby food company which has really caught the eye of investors over the last 12 months. This is due to the large number of agreements it has signed which have positioned it to challenge the dominance of a2 Milk Company and Bellamy's Australia Ltd (ASX: BAL).
These agreements include an equity-linked deal with Chemist Warehouse, countless Chinese ecommerce platforms, and the recent baby food deal with Chinese baby products retailer Kidswant. The latter will see Bubs' organic food products stocked by 275 Kidswant stores in 123 cities throughout China.
Another big positive has been its acquisition of infant formula producer Australia Deloraine Dairy. This acquisition will have a very positive impact on the company's operations through a material reduction in production costs.
However, the company is still waiting to be granted the SAMR accreditation required to sell its infant formula products on the China mainland. Until that is granted, it will be hard to gauge whether or not the brand resonates with Chinese families in the same way that a2 Milk and Bellamy's does.
Wattle Health Australia Ltd (ASX: WHA)
Wattle Health is also an infant formula and baby food company with its eyes firmly set on the massive China market. As with Bubs, it has signed a number of agreements over the last couple of years that have a lot of promise.
These are with a number of ecommerce companies across Asia and also with wholesale distributor Metcash Limited (ASX: MTS). However, with its cash receipts coming in at a lowly $163,860 during the last quarter, these agreements clearly haven't had a material impact on its financial performance as of yet.
Wattle Health is currently in the process of acquiring independent nutritional dairy manufacturer, Blend and Pack, but is taking on significant debt to do so. I see this as a very big gamble as it is unclear at this stage whether there is enough demand for its products in a crowded market.
Foolish takeaway
If one of these companies were to become the next a2 Milk Company, my money would be on Bubs. This could make it worth considering a small and patient long-term investment in its shares.
