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Ajethai unveils Vida vitamin water, enters RTD tea segment

By
Tan Heng Hong
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Ajethai, the producer of Big Cola in Thailand, plans to introduce Vida vitamin water in the fourth quarter of 2017, said Chintaphat Chanlongbutr, modern trade and export manager at Kola Real Trading Co., Ltd, a subsidairy of Ajethai. Chintaphat revealed this at Thaifex 2017. The food and beverage expo started on 31 May 2017 and will last until 4 June 2017. The launching of Vida would mark the expansion of the brand into the functional vitamin water category.

Six products under Vida

The Vida range comprises six variants:

  • Collagen for skin beauty
  • Q10 for skin beauty
  • Calcium for bone health
  • B-Complex for rejuvenation
  • D3 for well being
  • Selenium for immunity

Vida Collagen will have 2,000mg of collagen, no sugar, low in calorie and comes in the orange flavour. Vida Q10, meanwhile, will have 15mg of Q10, no added sugar and low in calorie.

Vida Calcium features vitamin D, calcium, magnesium and orange flavour. Vida B-Complex will have niacin, vitamin B5 & B6 and comes in apple/pear flavour.

Vida Selenium has zinc, vitamin A, vitamin E in the punch flavour. Vida D3 has vitamin D, vitamin B3, B5 and B6 and will have two flavours green tea and peach.

Introduces RTD tea

In addition to Vida vitamin water, Ajethai has introduced Aje Big Green Tea in honey lemon and original flavours a month ago (May 2017). The new RTD tea represented the expansion of the brand into the RTD tea category. Honey lemon is a popular flavour in RTD tea. The Aje Big Green Tea has no preservative and is made from natural tea.

Flavoured carbonates to increase user base

In the carbonated soft drink (CSD) category, Chintaphat said the introduction of the chocolate flavoured Big Cola, launched in early 2017, and other flavoured CSDs served the main purpose of recruiting new customers.

What Mini Me thinks

The new green tea and the proposed introduction of Vida vitamin water shows Ajethai is working towards rebalancing its current portfolio away from carbonates towards healthier drinks. The company may find itself fighting an uphill battle against the more established RTD tea players such as Ichitan and Oishi.

Success of millionaire program boosts Ichitan performance in Indonesia

By
Tan Heng Hong
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Image from the web

Ichitan Group reported stellar performance in Indonesia with sales reaching 2 million cases in the first five months of 2017, reported The Nation on 24 May 2017. The achievement represents two-thirds of the 2017 full year target of 3 million cases.

The millionaire program (“Mendadak Jutawan“) involving the giveaway of IDR 9 billion to 30 lucky winners each taking home IDR 300 million (USD 22,500) has been an overwhelming success. The campaign started on 1 April 2017 and will end on 30 July 2017.

1st winner announced

Ichitan Group CEO Tan Passakornnatee, also known as Mr Ichitan, personally handed the bundle of cash totaling IDR 300 million to the first winner. Being present at the prize giving event is important as it adds a personal touch and increases the appeal of Mr Ichitan and the Ichitan brand as generous and a saviour of the poor.

https://www.youtube.com/watch?v=NnwxgX7Y0PM

Such marketing helps to instill a feel good factor on the brand, thus generating the same impact as what Ichitan has achieved with its campaigns in Thailand. Passakornnatee was also present in the handing out of cash prizes to a number of IDR 300 million winners.

Win-win for retailers and brand owner

Retailers benefited from the millionaire program as they would receive prizes such as Apple iPhone from each winner of the IDR 300 million who bought at their store. By making retailers (ie small warung owners) happy, they are more willing to stock Ichitan products in the future and this would increase the brand penetration.

Ichitan now in Indomaret

Previously, Ichitan, a joint venture with Atri Pasifik, was not present in Indomaret, the largest minimarket chain in Indonesia. Atri Pasifik is a joint venture between Japan’s Mitsubishi Corp and local Sigmantara Alfindo (Alfa Group), which runs a competing Alfamart minimarket in the country. The expansion of the distribution channel into Indomaret is positive for Ichitan as this improves the product penetration further.

Spike in interest

There has been a sudden increase in interest about Ichitan following the launch of the millionaire program in April 2017. Most of the searches revolve around the millionaire program, a testimony of the success of the campaign.

Looking at first profit by 2019

Ichitan aims to earn a profit from its investment in Indonesia by 2019, said Passakornnatee. At the moment, the local unit is still a loss-making entity.

Gorilla workout drink, HoneyB sparkling drink entering China

By
Tan Heng Hong
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Image from HoneyB Facebook page

HoneyB, the world’s first halal sparkling honey drink, and Gorilla isotonic drink, both made by Malaysian companies are now in China. Gorilla is distributed by Mayiyanghuo (蚂蚁洋货), while HoneyB is distributed by Shanghai-based Golden International Corporation (上海戊申商贸有限公司). Gorilla comprises the complete workout range – Reload, Turbo and Fuel for before, during and after workout. Golden International Corporation (GIC) is also the distributor of Arla, Hero, Lurpak and other food products in mainland China.

Below as the photo of Gorilla workout drink at SIAL China 2017. The image was taken by the author.

HoneyB will enter hypermarket chain such as Carrefour and Auchan in China by the end of May 2017.

What Mini Me Thinks

Malaysian SMEs are actively targeting the export market to grow their new brand as the beverage business is all about volume.

The choice is yours – Good Mood or Bad Mood

By
Tan Heng Hong
-
Image from the Good Mood TVC

Your choice

The choice is yours – good mood or bad mood. This is the choice the male protagonist has to choose. The selection he made will have dire consequences – a matter of life and death or a happy ending.

The TV commercial by PT Suntory Garuda Beverages for its latest drink Good Mood inspired by infused water, presents the viewers with a choice. With the tagline “Ubah Mood-mu” or “Change your mood,” consumers are given the option to change their mood for the better or worse. Good Mood is an infusion of real lemon extract and a hint of honey. The drink is positioned to brighten and uplift your mood.

Bad Choice

A bad selection ruins the day. The male protagonist made the wrong selection and ended up fighting for his life trying to escape from zoombies while clutching a hen and holding a banana.

Good Choice

By choosing Good Mood, his mood improves and everything looks cheerful and fine. He even offers to open the taxi door for a stranger and give a balloon to a complete stranger.

In the office, his simple “fluttering” dance move became viral after an employee secretly filmed it and uploaded on the Internet. This section pays tribute to the quest of millennials going to extreme lengths for celebrity fame on YouTube, sometimes without even realising it.

After the clip was uploaded, it became viral and was reported by the global media. This spurned copycats around the world.

Shoot to fame

Upon leaving the main door of his office, the protagonist was surprised to find himself surrounded by journalists wanting to catch a glimpse of the person behind the viral dance move.

Millennials choose fame over career

A survey by Clapit, a discovery platform for new talent, has found 30% of millennials would choose to become famous rather than becoming a lawyer. One in ten millennials would choose fame over a college degree and over a quarter of millennials would quite their job in exchange for fame.

This TVC by Suntory Garuda resonates with the shoot to fame mentality and aspiration of the millennial generation, the target audience of the Good Mood drink.

What Mini Me thinks

It is inconceivable 15 years ago to think of making a living as a YouTuber or Internet celebrity but this has happened now.

Blanc Coco sparkling coconut water to debut in China in June

By
Tan Heng Hong
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Blanc Coco, the world first 100% sparkling coconut water from nam hom coconut, is now available in PET and can packaging. The new packaging was spotted at SIAL China 2017 (17-19 May 2017), which was held at the Shanghai New International Expo. The author first saw Blanc Coco at Thaifex 2016 in May 2016.

Image from Blanc Coco official website

Blanc Coco is produced by Thai Coconut Public Company Ltd and was officially launched in Malaysia in February 2017. Blanc Coco is distributed locally by Euro-Atlantic Sdn Bhd and is available in four flavours  – Natural Flavour, Mango & Pineapple, Lemonade and Pomegranate. With a selling price of RM 7.50, Blanc Coco is targeted at foodservice and high-end grocers.

In China, Blanc Coco is distributed by Nanjing Big Dipper International Trade Co., Ltd. (南京碧得璞国际贸易有限公司) and will be made available the glass version in early June 2017. The selling price is likely to be around CNY 30 per bottle. The premium price means the sparkling coconut water will focus on high-end supermarkets, star graded hotels and restaurants.

Kalbe Farma Xon-Ce extends into RTD segment

By
Tan Heng Hong
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Image from Xon-Ce Facebook

Indonesia’s largest pharmaceutical company Kalbe Farma is leveraging on its strength and trusted brand in healthcare by extending its Xon-Ce chewable vitamin C tablet into the ready-to-drink (RTD) segment.

Launched around March 2017, the new Xon-Ce Drink is a healthy RTD drink high in vitamin C, vitamin D and calcium, the first of its kind in Indonesia. The drink is also marketed to consumers who are allergic to milk but still need something to help them to increase their calcium level.

The TV commercial asks the pertinent question which is important – vitamin C, vitamin D or calcium. The answer is CC+D is important for the life of young adults. The tagline is “Taste the Double CC.” Consumers are recommended to consume 2 bottles of Xon-Ce Drink to meet 80% of theirdaily calcium needs.

https://www.youtube.com/watch?v=ihD7VMHXN_E

Each 200ml serving of Xon-Ce Drink provides 100% of the daily needs in vitamin C and vitamin D as well as 40% of calcium.

The retail selling price is IDR 5,500. Xon-Ce Drink is made by PT Hale International, which also produces the Original Love Juice.

Indonesian wafer players bet big on chocolate wafer in China

By
Tan Heng Hong
-
Nabati booth at Sial China 2017. Image taken by the author

Richeese

Indonesia’s PT Kaldu Sari Nabati, which has made it big in China with the popular Richeese cheese wafer, is now looking at replicating the success of cheese wafer with chocolate wafer.

Image from the web

At the Nabati booth at SIAL China 2017 (17-19 May 2017), Vincent Zhang, country manager at Enerlife China, told the author chocolate wafer would be the key focus for China in 2017. In 2017, the company introduced Richeese SiiP (roasted corn, chocolate and cheese flavours) and Richoco Nabati Chocolate Flavored Wafer.

Nabati entered China in 2013 focusing initially in the southern provinces. The long period of market cultivation has made Guangdong, Fujian and Hunan the key markets for Nabati. The company is now moving north into Beijing, Henan and into east China such as Shanghai where Richeese wafer is available in convenience stores, online, Walmart and other modern retailing channels.

The Richeese wafer in China is made less sweet to fit the preference of Chinese consumers, said Vincent. The ingredients are also slightly different from Indonesia to comply with Chinese regulations.

Richeese among most sought after – JD Research shows

The JD Research Institute (京东数据研究院) recently published the Belt and Road Initiative Cross Border E-Commerce 2017 Report (2017“一带一路”跨境电商消费趋势报告) on 15 May 2017. The report by the research arm of the Chinese e-commerce giant JD.com has named Richeese (丽芝士) among the most popular snacks imported by China from Belt and Road countries in 2016. Richeese shares this title with Vietnam’s Lipo bread, Indonesia’s dried fruit and vegetables and 7D dried mango from the Philippines.

OT Group – Tango wafer

Tango Waffle Crunchox was the key highlight for OT (Orang Tua) at SIAL China 2017. OT is late in the game. The key reason for focusing on chocolate wafer is to differentiate the company’s product range from Nabati’s popular Richeese cheese wafer, which according to Nabati has been imitated by a lot of companies.

In China, Tango Waffle Crunchox and Tango Wafer are among the products distributed by Zhuhai Twinstar Trading Co., Ltd., a local unit of OT.

The company said its products sold best in the southern and eastern China as consumers in these region are more open to trying new imported food.

Nextar nastar cookies (pineapple tart) was on display but is currently not available in China.

Fullo Blasto chocolate wafer stick is distributed by another unrelated company Shenzhen Future Import & Export Co., Ltd., which has the rights to distribute Fullo Blasto in China.

*All the images were taken by the author

Cowa launches three coconut water products in 2017

By
Tan Heng Hong
-

Malaysia’s coconut water pioneer Linaco Group of Companies showcased its Cowa coconut water and virgin coconut oil at the recently concluded SIAL China 2017 (17-19 May 2017). In 2014, Linaco was the first company in Malaysia to launch the locally-packed natural coconut water in TetraPak Prisma Aseptic packaging.

Launched three products in 2017

In China, Linaco made available three new products in 2017 – coconut milk drink, lemon flavoured coconut water and lemon + honey flavoured coconut water. The company said the two most popular Cowa products in China are the original coconut water and the coconut milk drink. Coconut milk drink has a long history in China and is the key product category before the arrival of coconut water popularised by Vita Coco.

Cowa coconut-based beverages are available in tier one cities such as Beijing, Shanghai and Chengdu as well as in lower tier cities like Hangzhou, Ningbo and Chongqing. The local distributor is Nanjing Sichafu International Trading Co., Ltd. (南京思查福国际贸易有限公司)

Robocar Poli

In China, the company also has the right to sell beverages featuring Robocar Poli, a South Korean animated children’s television series created by RoiVisual. The beverages under the Robocar Poli series include soybean milk and yoghurt drink targeted at children.

*All the images were taken by the author

OldTown hinges growth on China, launches RTD coffee

By
Tan Heng Hong
-

OldTown Bhd, the maker of Old Town white coffee and the operator of the namesake coffee shop chain, is betting on the vast China market for future growth.  The company also plans to introduce RTD coffee in China to drive growth forward.

China key to OldTown manufacturing growth

For the first nine months of FY 2017, Greater China (Hong Kong, Taiwan and China) accounted for 45% of OldTown’s manufacturing revenue, replacing Malaysia (35%) as the top sales generator in the beverage manufacturing segment, according to the Hong Leong Investment Bank – FMCG – Far More China Growth report on 23 February 2017.

Another Hong Leong Investment Bank’s  Asian Odyssey Underway equity research report on 24 February 2017 mentioned OldTown had a “strong network in China (with over 100 online retailers including Taobao, JD and TMall, which accounts for 80% of sales in China).”

Note: China refers to Greater China – Taiwan, Hong Kong and mainland China. Mainland China contributed less than 15% of beverage manufacturing revenue.

The strong sales growth in Greater China contributed to the sterling performance of the overall beverage manufacturing segment in FY 2017, which rose 17.2% year-on-year.

In FY 2016, export contributed 59% or RM 116.7 million towards beverage manufacturing revenue. The beverage manufacturing export revenue for the first nine months of FY 2017 jumped 35% year-on-year, largely driven by Greater China.

OldTown introducing RTD coffee in China

Ready-to-drink (RTD) coffee (image above) will be the next phase of growth for OldTown in China. According to Chen Lu, regional sales manager at Shenzhen OldTown White Coffee Trading Co., Ltd., the OldTown RTD coffee will be made available in convenience store and online and will be rolled out in the coming months. She also disclosed the stock has already arrived in the country.

Three pricing segments in RTD coffee in China

According to the PwC presentation entitled How to Build a Successful F&B Brand in China at SIAL China 2017, there are currently three pricing segments in RTD coffee in the country.

  • Below RMB 10 is highly competitive with 84.1% of market share in 2016, down from 85.6% in 2011.
  • RMB 10-20 is a growing segment with a market share of 15% in 2016, an increase from 13% in 2011.
  • Above RMB 20 has a limited market with a fall in market share to 0.9% in 2016 from 1.4% in 2011 due to the inability to compete with freshly-made coffee at this price level.

It is interesting to see which pricing OldTown will adopt for its RTD coffee.

Mocha flavour main thrust in 2017

OldTown launched the mocha flavour in China in 2017. The mocha flavour is aimed at young consumers and those that do not drink coffee. The original flavour remains the most popular choice in China.

Keko unveils Grandsoy soy milk, Glinter Fruit Drinks at SIAL China

By
Tan Heng Hong
-

The maker of Glinter soft drink, Keko Marketing (M) Sdn Bhd, unveiled two new products for China – Glinter Fruit Drinks and Grandsoy at SIAL China 2017 (17-19 May 2017). The Malaysian company was looking for distributors for the two new products at the recently concluded trade show.

Glinter Fruit Drinks

The Glinter Fruit Drink range comprises:

  • Glinter Lychee Fruit Drink with Aloe Vera
  • Glinter Pineapple Fruit Drink with Real Pineapple Pulp
  • Glinter Pink Guava Fruit Drink with Aloe Vera
  • Glinter Soursop Fruit Drink with Aloe Vera

Unlike the existing Glinter soft drink with fruit flavours, the four new beverages contain aloe vera and pineapple pulp. For example, the Glinter Pink Guava Fruit Drink with Aloe Vera contains 79% water, 11.5% sugar, 5% pink guava puree, 4.2% aloe vera crush and the rest such as guava flavouring.

Below is the Glinter Pink Guava Fruit Drink with Aloe Vera. The image was taken by the author.

Glinter Fruit Drink is certified halal by the Department of Islamic Development Malaysia (JAKIM), the competent authority being responsible for halal certification in Malaysia. The drink has an expiry date of 18 months.

Glinter is positioned for the foodservice, hotel  and entertainment establishments.

Grandsoy

Grandsoy soy milk, a product of Thailand, is made for Keko Marketing (M) Sdn Bhd. The range comprises Red Bean, Original, Black Bean and Sesame. The shelf life is 12 months and each bottle weighs 300ml.  The soy milk is high in fibre, contains no preservative and uses non-GMO soybean. It is added with milk powder.

Keko plans to introduce Grandsoy and Glinter Fruit Drinks in Malaysia in July 2017.

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