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Milk-based Coffee Shaking Up the Market


The local domination of canned coffee in Malaysia is slightly shaken by the new milk-based coffee from Farm Fresh. The Farm Fresh Café Latte Double Espresso uses 100% fresh cow’s milk and real Arabica coffee to deliver the extra caffeine kick.  The price is slightly upmarket at RM 3.00 per 200ml. It is stored in a plastic container and has to be chilled at 4 degree Celsius. The short shelf life gives the product the fresh halo and therefore the premium pricing.

Farm Farm owner The Holstein Milk Company Sdn Bhd has made a big impact on the local fresh milk scene with its catchy product design in plastic container to differentiate itself from other carton-based fresh milk.  Similar to other fresh milk producers, the company has extended its product line to include chilled dairy products with mass appeal such as flavoured milk and yogurt drink. Unlike other fresh milk companies, The Holstein Milk further builds upon its reputation as a fresh milk company with a new milk-based coffee drink – Café Latte. The only possible competitor in this category is the imported Switzerland’s Emmi Caffee Latte range comprising macchiato, espresso and cappuccino selling in a similar 200ml plastic bottle for nearly twice the price at RM 5.89. 

Farm Fresh Café Latte is chilled and has to be kept in a refrigerated state.  Due to the need for chilled storage, the product is usually placed where fresh dairy products are displayed, thus restricting the product to a small group of consumers who enjoy coffee made from fresh cow’s milk. 
 
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The key to expand the acceptance of milk-based coffee drink in Malaysia is to market the drink as coffee-flavoured fresh milk or simply iced coffee. This approach leverages on the existing strong demand for flavoured milk, chilled and non-chilled, in Malaysia. Coffee has the potential to become one of the popular fresh milk flavours targeting young adults and adults. This mainstream approach will then help to create demand for more premium milk-based coffee drink such as Farm Fresh Café Latte.

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