The Real Good small-pack UHT liquid milk of Japfa Ltd is doing very well. Sales volume of Real Good UHT liquid milk in Indonesia rose double-digit for two consecutive years (2014-2015), up respectively by 30% and 41%.
On the contrary, sales of the company’s extended shelf life branded milk in the Southeast Asia region under the Greenfields brand fell 6.6% in 2015 to 21.1 million litres. About 70% of Greenfields milk is exported, while the remaining 30% is consumed locally.
The Real Good UHT milk in the 160ml pillow pack is designed for aspirational consumers and is popular with school children, thanks to its affordable price.
Japfa currently has a UHT milk processing plant with a monthly production capacity of 3,500 tons or 42,000 tons per year.
The Real Good UHT milk in pillow pack is still the best way to reach lower income consumers. Eventually, there is a likelihood the company will come up with a carton alternative to encourage consumers to buy something of higher value. This will be a repeat of the strategy of OT Gelas for its Teh Gelas RTD tea in a cup now also available in more expensive PET and carton options.