Fitbar, the leading snack bar from PT Kalbe Farma Tbk, was upgraded to multigrain in February 2017 with the addition of oats, whole wheat and quinoa.
Image from Fitbar Facebook site
The key difference with the previous Fitbar is the addition of quinoa, which helps make you feel fuller and thus making you feel less likely to eat unhealthy foods.
The benefits of quinoa in reducing body weight. Image above from Fitbar Facebook site
Feeling fuller
The weight loss functionality is a strong theme in the snack bar category in Indonesia. Fitbar is know for its “Snacking with no worries” tagline. The addition of quinoa helps to reduce the urge to eat.
The same positioning was adopted even earlier by Soyjoy in 2016 through the “Cut Carbo” campaign. Soyjoy is made by PT Amerta Indah Otsuka, the same company behind the Pocari Sweat isotonic drink. The key message of the campaign is to encourage consumers to eat Soyjoy two hours before meal so that they can reduce their intake of carbohydrate, thus leading to weight loss.
What Mini Me thinks
The Indonesian snack bar category has positioned itself in the forefront of addressing consumer health concerns – over weight and obesity. It helps to make the snack bar category relevant to consumers who are conscious of their health. The same positioning can be implemented in the Philippines and Malaysia where Fitbar has a strong presence.
Following the introduction of Nestle Bliss Plus in the first quarter of 2017, the existing Nestle Bliss was given a new look. The new packaging design is to ensure the Nestle Bliss range shares an identical brand design as the new Nestle Bliss Plus, which was officially introduced at the end of March 2017. Nestle Bliss Plus comes with live cultures, inulin and real super fruit juices.
Here is the image of the new packaging for Nestle Bliss (right). The background colour now comes with a lighter blue hue. The product description and the word “with real fruit juice” are given a more prominent placement to highlight the product’s key characteristics.
Ayam Goreng McD or McDonald’s spicy fried chicken managed to create a buzz on social media in Malaysia . The humble fried chicken was even out of stock on 3-6 April 2017.
Will be back on 7 April 2017 (Friday). Image above from McDonald’s Malaysia Facebook fan site
Spike in search for Ayam Goreng McD
Google Trends, a indicator to gauge popular trends through online keyword search, shows a spike in interest from early March 2017.
Upgrade Ayam Goreng McD
McDonald’s has been serving fried chicken (Ayam Goreng McD) in Malaysia since 1987. But when it comes to the top-of-the-mind for fried chicken, most consumers would think of KFC – Kentucky Fried Chicken.
Hunger marketing
This changed when McDonald’s Malaysia introduced the upgraded version of Ayam Goreng McD in March 2017 with the tagline There’s Nothing Like It. The crunchiness sound of the crispy Ayam Goreng McD and the expression of the eaters especially when the spicy taste finally hits them have done all the talking.
Unboxing event live on Facebook
McDonaldâs Malaysia even organised an event on Facebook Live on 17 March 2017 to celebrate the unboxing of Ayam Goreng McD. Here is the snippet of the press release:
“McDonald’s today paid tribute to Malaysiansâ enduring love for its Ayam Goreng McDâą- a classic customer favorite since 1987 â in the biggest Live Unboxing event on Facebook, in Malaysia. Over 2500 Share Boxes of Ayam Goreng McDâą was unboxed simultaneously across all of McDonaldâs restaurants nationwide.”
Finally, the success of the Ayam Goreng McD campaign is summed up in the words of McDonaldâs Malaysia Managing Director Azmir Jaafar.
Dear Friends,
In the past few weeks, we have seen the love that we all share for our Ayam Goreng McD. Indeed, the demand for Ayam Goreng McD has been overwhelming and we are truly grateful for the support that Malaysians have shown for this product.
One of the reasons why Ayam Goreng McD continues to be a favourite is because our chicken is delivered fresh daily to our restaurants. However, our firm commitment to offering only the freshest product – prepared and served at our quality standards and specifications – has led to the âsold-outâ situation you may have encountered at some of our restaurants.
We are estimating that our supply will stabilize by early June. In the meantime, the availability of Ayam Goreng McD will differ from restaurant to restaurant, depending on their location and demand.
We truly value your feedback and we hear your comments. In the meantime, we kindly ask for your patience and continued support.
Thank you and may Ayam Goreng McD always have a special place in your heart.
Azmir Jaafar
Managing Director
McDonaldâs Malaysia
What Mini Me thinks
First, it is the unexpected – the upgraded Ayam Goreng McD, which raises consumer’s interest to try how good is the chicken. McDonald’s is not known as the fried chicken expert. Then came hunger marketing to demonstrate how successful the new Ayam Goreng McD flew off the shelf. All these were accentuated by the power of social media. The rest is history.
A consumer selecting instant coffee at Hyperstar in Tehran, Iran. Image photographed by the author in April 2017
Strong growth in instant coffee exports to Iran
Indonesia’s instant coffee exports to Iran have skyrocketed. At the end of 2016, the export value stood at USD 5.9 million, up from a mere USD 148,000 in 2012, according to data from the Ministry of Industry Indonesia (kemenperin).
The major Indonesian instant coffee exporters to Iran are Mayora Indah (Tora Bika) and Santos Jaya Abadi (Good Day).
Tora Bika instant coffee sold in a shop in Tehran, Iran. Image captured by the author in April 2017
Selling instant coffee Indonesia style
The author saw a vendor selling Tora Bika instant coffee outside Golestan Palace (image above). This reminded me of Indonesia – the disposable cups, the instant coffee sachets and the hot water flask. Perhaps this is something Mayora Indah is exploring to create a network of mobile vendors selling its Tora Bika coffee.
Competing against Nescafe & Klassno
Indonesian instant coffee’s presence in Iran is still small. The market is currently dominated by the Swiss multinational Nestle (Nescafe) and Singapore-based Food Empire (Klassno). Euromonitor put the market share of Nescafe in 2014 at 23% and Mita Kish at 22%, according to Financial Tribune. Mita Kish is the local distributor of Klassno.
Good Day among the sea of Klassno instant coffee in a petrol mart on the outskirt of Tehran. Image above was photographed by the author in April 2017
Wide selection of instant coffee at Hyperstar in Tehran, Iran. Image above was photographed by the author in April 2017
The other players in the market include Turkey’s Altunsa, Bahran’s New York Coffee and Malaysia’s Cobizco, which has also made available the distinctive Malaysian white coffee.
What Mini Me thinks
On the backdrop of the expected stable growth of instant coffee volume consumption in Iran, the growing coffee drinking culture in a traditionally tea drinking country like Iran bodes well for instant coffee players looking to capture a slice of the market. The key risk is still the ongoing economic sanctions against the country.
Graph above taken from RHB Securities from its equity research report on Food Empire on 11 April 2017
Dairy-free alternatives are growing in popularity worldwide. In Iran, the most common dairy-free alternative is soymilk. There is also coconut milk but it is not considered dairy-free per se as the product is made from fresh cow’s milk. Nevertheless, coconut milk will be discussed as well.
Soymilk
Image photographed by the author in Iran in April 2017
The soymilk above is produced by Saina Ghaza Part Co. The brand website is at www.mandasoy.com. The key ingredients are soy milk, sugar, vanilla flavour, salt and calcium lactate. The range is free from lactose and cholesterol. It comes with eight flavours – cantaloupe, strawberry, vanilla, plain, banana, saffron, coffee and chocolate.
Image from Mandasoy.com
The taste of the soymilk seems quite raw to Asian consumers feeling akin to drinking soymilk that has just been pressed.
Coconut milk
Image photographed by the author in Iran in April 2017
The Khorasan Pegah coconut milk from Iran Dairy Industries Co is sterillised and homogenised. The key ingredients are fresh cow’s milk (fat 2.5%), coconut powder, sugar and carrageenan. The coconut milk is packed in an SIG Combibloc carton.
Image from http://shirinasal.com
The Liona coconut milk by Shirin Asal Food Industrial Group contains cow’s milk. The key ingredients are fresh and pure cow’s milk (1.5% fat), sugar, coconut milk powder, stabiliser and identical natural colour. It is packed in a Tetra Pak carton.
Lionel coconut milk food calories per 100ml is 68.7 kcal and calories from fat per 100ml of food is 13.5 kcal.
What Mini Me thinks
The dairy-free alternatives in Iran appears to be confined to soymilk. Will there be a growing market for soymilk in Iran? Plant-based drinks are naturally lactose free. The lactose free positioning can be used to target consumers who are lactose intolerant. However, the lactose-free and low-lactose claims have appeared in the liquid milk category, a competing category.
When it comes to the health benefits, a research by the Kashan University of Medical Sciences has found drinking soy milk may protect women with polycystic ovary syndrome from heart disease and type 2 diabetes. Such research may benefit the category over the long run. But first of all, the consumption of soymilk has to be cultivated from young.
Photo taken by the author in Subatan, Gilan Province, Iran
Dairy powerhouse
Iran is a dairy powerhouse in the Middle East. According to the head of Holstein Association of Iran, Mohammad Reza Sanjabi, the country is the Middle East’s second biggest exporter of dairy products after Turkey. By the end of the Iranian year (20 March 2017), dairy product exports from Iran would expect to reach USD 650 million, said the Dairy Industries Association of Iran cited by Financial Tribune on 19 December 2016.
Iraq is a main export destination for Iranian milk. Iraq imports from Iran some 20% of the USD 600 million dairy products it bought from abroad, according to Ali Roumi, managing director of Food, Agriculture and Pharmaceuticals Holding of the Civil Servants Pension Organization.
Key players
The key players are Iran Dairy Industries Co. (Pegah), Kalleh Dairy Company, Mihan Dairy Group, Sahar Dairy, Damdaran Holding, Teen Dairy Products Company and Pak Dairy Company. Listed on the Tehran Stock Exchange are Pak Dairy, Kalber Dairy, Isfahan Pegah Dairy, Khorasan Pegah Dairy and West Azarbaijan Pegah. The revenue of one of the top players, Â Kalleh, was expected to reach USD 300 million for the 12 months ending March 2016.
It is not known whether the âperiod end to dateâ is for 12 months to December or for certain period of the year.
Top brands in dairy
The top brands in dairy as announced by the Trade Promotion Organization of Iran for the year ending 20 March 2017 are Kalleh, Pegah and Mihan.
Mihan Dairy Group was the 10th largest seller of ice cream in the world in 2015 with sales of USD 575 million, according to Euromonitor. Mihan’s corporate website claims it has 65% of the market share in ice cream and 50% of the market share in UHT milk.
Below are some examples of liquid milk in Iran.
Lactose free
Image from Shahrvand.ir
Lactose free UHT milk by Kalleh. The price is IRR 34,000 for a 1L in Tetra Pak carton packaging.
Image from Shahrvand.ir
Damdaran lactose free milk. Priced at IRR 24,840 for a 1 litre in a plastic bottle.
Low lactose
Pegah low-lactose vitamin D3 fortified milk is selling for IRR 34,300 (1L – Tetra Pak).
Fortified milk
Image from shahrvand.ir
This Pegah UHT milk is fortified with Vitamin D and C and has calcium. The selling price is IRR 49,000 per 1.5L in Tetra Pak.
Pasteurised low fat milk enriched with omega 3. It is made from fresh cow’s milk. The fat content is 1.2 ± 0.2% gram. It is made by Teen Dairy. The volume is 946ml ± 3%ml and the price is IRR 23,000.
Flavoured milk – Cocoa Milk
Image from shahrvand.ir
This Kalleh Cocoa Milk is priced at IRR 12,000 per 200ml.
Coffee milk
Image from shahrvand.ir
Coffee milk from Bel Rouzaneh, the joint venture between Bel and Sahar-Dairy. This 200ml coffee milk is sold at IRR 9,800 and comes in a Tetra Pak.
Image from shahrvand.ir
Mihan Dairy’s coffee milk made from fresh milk iselling at IRR 9,700 for 200ml (Tetra Pak).
For children in triangle pouch
Image from shahrvand.ir
Pak chocolate milk in triangle pouch retailed at IRR 9,000 per a 200ml pouch.
Honey milk
Image from shahrvand.ir
Honey milk from Bel Rouzaneh retailed at IRR 9,800 for a 200ml pack in Tetra Pak.
Image from shahrvand.ir
Kalleh honey milk is priced at IRR 13,300 for 200ml.
 Cantaloupe milk
Image from shahrvand.ir
Mihan Dairy’s cantaloupe milk in 200ml Tetra Pak selling at IRR 9,700.
Strawberry milk
Image from shahrvand.ir
Mihan Dairy strawberry milk priced at IRR 9,700 for a 200ml in Tetra Pak.
Banana Milk
Image from shahrvand.ir
Damdaran’s banana milk is 200ml Tetra Pak selling at IRR 11,040.
Image from shahrvand.ir
Banana milk (200ml – Tetra Pak) from Bel Rouzaneh selling at IRR 11,760.
Image from shahrvand.ir
Danone Danette banana milk dessert is priced at IRR 12,600 for a 200ml in Tetra Pak. The Danone Danette range comprises the honey, cantaloupe, chocolate coconut, cappuccino, banana, and chocolate flavours.
Image from shahrvand.ir
Dairy banana dessert drink 200ml selling at IRR 13,300 produced by Domino Dairy & Ice Cream Co.
Carrot milk
Photo taken by the author
Pegah carrot milk (IRR 11,600).
Rose water and saffron milk
Photo taken by the author
Pegah rose water UHT milk (IRR 12,350) and Pegah saffron UHT milk (IRR 13,300).
Date milk
Photo taken by the author
Kalleh date milk 200ml – IRR 12,350.
What Mini Me thinks
Saffron, rosewater and date flavoured UHT milk are interesting examples of localised flavours for UHT milk.
As for the banana flavour, it is not at all a surprise to see banana is popular with Iranians. The fruit is widely sold on the streets. Iran does not grow bananas. It has to import from countries like Ecuador, Â India and Costa Rica. What surprises me is the acceptance of banana as a flavour in milk.
It is also interesting to discover there are lactose-free and low-lactose liquid milk options considering the fact that dairy is important in the Iranian diet. Dairy is eaten from young. But there is a section of society that faces the problem digesting lactose and this opens up the opportunity for lactose-free dairy products.
In Indonesia, the packaging size of Aje Big carbonated soft drinks with the recommended price appears to have shrunk from 535ml to 425ml. At the same time, the suggested retail price for the flavoured variant (eg strawberry) has been reduced to IDR 3,000 (USD 0.23) from IDR 3,250, while the price of the cola variant remains unchanged at IDR 3,000. In addition to the reduction in volume and price, the packaging design has been given a makeover.
New pack size on the left. Image above was captured by the author
No price hike for years
Since it was introduced in 2010, Aje Big Cola (535ml) has always been sold at IDR 3,000. Speaking to MIX Marcomm magazine in 2015, PT AJE Indonesia Commercial Director M Aswan Nasution said the brand has not increased its price since 2010. The most likely reason for the capping of the price at IDR 3,000 was Aje Indonesia was focusing on winning the volume game in competition with Pepsi and Coca-Cola.
All Aje Big flavours now have a size of 425ml. Image above was taken by the author
Product launching timeline
Big Cola 300ml – October 2014
Sporade isotonic drink – October 2014 (likely to be have been withdrawn from the market)
Big Fress carbonated juice drink – 2015
Cielo bottled water – April 2015
Versus competitors
With the new price at IDR 3,000, the 425ml Aje Big Strawberry (PET) is still cheap compared to Coca-Cola’s 390ml (PET) at IDR 4,000 and Pepsi’s 410ml (PET) IDR 5,520 (promotion price IDR 3,680). The new price and volume nevertheless ensures Aje Big still continues to have a competitive edge over its rivals.
Existing 535ml with new packaging for c-store
It is a different scenario at 7-Eleven (image above) where the 535ml packaging size survives and comes with the new packaging. The recommended selling price is not stated on the packaging as the convenience store charges a higher price for the convenience offered. The 535ml drink is priced at IDR 4,500 at 7-Eleven.
To promote the concept of hydration as the key to concentration, Danone’s Aqua bottled water has launched a marketing campaign “Apa momen gagal fokusmu” or “What’s the moment for not being able to concentrate”.
The brand has come out with a list of cool abbreviations, targeting millennials, to explain “the moment” one fails to concentrate.
Here is a list of the many reasons why one cannot concentrate. The lingos are featured on the front packaging with the full explanation on the back of the bottle.
Blank ‘pikiran kosong‘ – The mind is empty
Mager ‘males gerak‘ – Cannot make the body move even though you have work to do
Loding ‘lambat respon‘ – The feeling is like playing the latest game on a 10-year-old handphone
Terkuras ‘terlihat kurang cerdas‘ – Off topic not because you have low IQ but because you cannot concentrate
By speaking the language of the millennials, Danone is able to effectively link the lack of focus with hydration and provide a solution – drink more water.
Attended the wrong class because of the lack of concentration. Luckily there is Aqua. Image above from Aqua website
The main message is if you keep yourself hydrated, you can avoid getting yourself into unexpected situation like the example of the man below who thought he was going diving but ended up skydiving. The final catch phrase is there is always Aqua (#AdaAQUA).
What Mini Me thinks
Finding your Indonesia. Image above from the web
Danone’s Aqua is extremely creative with its marketing whether it is for corporate social responsibility (CSR) with “Aqua One for Ten” (#1Untuk10) to bring clean water to the needy or celebrating Indonesia with “Finding your Indonesia” (#TemukanIndonesiamu)
Modern consumers are troubled by their inability to focus due to their hectic life. The need to concentrate on the job or study provides Danone with a good opportunity to market Aqua as the modern day solution by creatively making hydration inseparable from concentration.
FrieslandCampina’s Dutch Lady has apparently switched its aseptic carton supplier from Tetra Pak to SIG for some of its products. The Dutch Lady’s flavoured UHT milk in Malaysia currently uses both Tetra Pak Tetra Brik Aseptic and SIG Combibloc with the flavoured UHT milk (200ml) containing the newer manufacturing date employing SIG Combibloc.
The example below are both 200ml. The Tetra Pak Tetra Brik Aseptic packaging is taller and narrower, while the newer SIG Combibloc is shorter and wider.
So far, Dutch Lady is seen using the SIG Combibloc only for the 200ml flavoured UHT milk. F&N Magnolia is the other UHT milk player in Malaysia that is using SIG Combibloc.
Vietnam’s domestic packaged coconut water market remains underdeveloped. This is despite the country being the 8th biggest producer of coconut-related products in the world. Moreover, the country’s share of high valued added coconut products like coconut water is small as most suppliers receive their coconut water from Thailand, Philippines and Indonesia.
Fresh coconut rules
Vietnam faces the same issue as the rest of Southeast Asia, a region that has an abundant of fresh coconuts. Consumers have grown up accustomed to the taste of fresh coconuts but this can change. We have seen this happening in Indonesia, the Philippines, Malaysia and Thailand where consumers are becoming receptive to packaged coconut water.
Common positioning
The most common positioning of coconut water is as a hydrating drink to replace lost fluid to support the active lifestyle. This puts coconut water in strong competition with sports drink as coconut water is marketed as a drink for “natural hydration.”
Cocoxim bringing packaged coconut to Vietnam
A lot of coconut water producers in Vietnam focus on the export market. For Bertimex, the leading manufacturer and exporter of coconut water in Vietnam, the company not only taps the export market but is also working to grow the packaged coconut water domestically.
Image above from packagingoftheworld.com
Its packaged coconut water Cocoxim is made with Tetra Pak TetraPrisma Aseptic packaging. The packaging is produced with 6 material layers with the DreamCap closure to lock in the benefits of the coconut. The coconut water comes from Ben Tre, lauded as the “coconut capital” of Vietnam.
Cocoxim is also the first coconut water in Vietnam infused with tropical fruit flavor. The range comes in four flavours – original, orange, lotus seed and kumquat.
Widely available
Cocoxim is available at Shop&Go, Aeon, Aeon Citimart, Auchan, BigC, CricleK, Co.op, CoopFood, Emart, FamilyMart, Guardian, LotteMart, VÄn Lang and Vinmart.
Marketing of Cocoxim
Bertimex is promoting Cocoxim by harnessing the provenance appeal with the coconut water sourced from Ben Tre. The marketing materials feature stories of local coconut farmers sharing their experience about coconut cultivating.
Uncle Mưá»i â a coconut farmer from Bentre â sharing his experience about coconut cultivating. Image above from Cocoxim
Apart from highlighting the natural, purity and healthy credentials of Cocoxim, the brand is also localising its marketing message to tie in with the different celebratory occasions such as Women’s Day.
Women’s Day. Image above from Cocoxim
The marketing message is also crafted to make the product relevant to the lifestyle of millennials who the group that is most willing to try new beverages.
Preparing for exam. Image above from Cocoxim
Organic coconut water
The latest development is the organic version of Cocoxim will debut soon, according to the latest post on Cocoxim Instagram on 27 April 2017. The organic coconut water is not added with sugar.
What Mini Me thinks
As packaged coconut water is still a nascent category in Vietnam, Cocoxim’s move to establish itself as a leading brand in the segment is laudable. As the saying says, the early bird gets the worm, Cocoxim can carve for itself the leadership position in packaged coconut water. However, there is still a lot of work laying ahead, which requires strong marketing effort to localise and spread the product benefit message to consumers who prefer fresh over packaged coconut water.
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