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Oriental Brewery to make available Cass beer in China from 2H 2014

Cass beer sold on JD.com

South Korea’s Oriental Brewery (OB) will start using the sales network of its parent company Anheuser-Busch InBev (AB InBev) to sell its flagship Cass beer in China starting the second half of 2014. AB InBev is the third biggest brewer in China with a market share of 14.1% in 2013.

According to the Chosun Ilbo article, “If we take advantage of this network, we think we can fare well in China,” said OB CEO Jang In-soo on 10 July 2014. Indeed, OB, using AB InBev sales network in China, will give it better control of the supply network. At the moment, Cass beer is sold in China through the country’s numerous online stores  with the beer directly imported from South Korea by individuals or companies with no relations with OB.

The latest move by OB is belated but still commendable as the eating fried chicken with beer (usually Korean beer) phenomenon made famous by the South Korean drama You Came from the Star is still going strong in China.

Yours truly has mentioned this in the posting Time for Beer and Fried Chicken dated 7 March 2014 calling for South Korean beer companies to renew their push into the Chinese market to tap the fried chicken with beer trend. Let’s see if Cass is able to make itself the beer for fried chicken-beer consumption in China and successfully marketing itself as the beer for young consumers longing for the Korean lifestyle.

Chocolatey push by Dutch Lady Malaysia

Dutch Lady Malaysia, through a CLT Product Test by Sensory Research Group in December 2013, claims more than 70% users chose its chocolate flavoured milk over other brands. CLT stands for central location test where a booth is set up, usually in the shopping mall. Consumers are asked to choose their favourite drink without knowing the brand name first hand.

Dutch Lady Chocolate
Taste Challenge

The latest Dutch Lady campaign echoes a similar Taste Challenge that was carried out by Minute Maid in Malaysia few years ago. The result was unsurprisingly 9 out of 10 fruit sellers chose Minute Maid Pulpy. The juice drink used this approach to obtain impartial endorsement by fruit sellers who are the expert in fruits to encourage consumers to switch to Minute Maid, which is a late entrant into the juice market.

For Dutch Lady, it is already a market leader in the chocolate flavoured UHT milk segment. The reason it is running this campaign is the chocolate drink market is getting more attention these days from manufacturers. Horlicks has gone into chocolate, while Soyfresh has partnered with Hershey’s to introduce the new Soyfresh Hershey’s chocolate and mocha flavoured soya milk range.

Chocolate seems to be the top choice for Malaysian consumers when it comes to flavoured UHT milk. The question is can banana milk, made famous by South Korea’s Binggrae, topple the dominance of chocolate in Malaysia? Banana milk flavour is now a big thing in China, largely due to the Korean pop culture influence. Will Malaysian dairy companies turn their attention to banana flavour? Let’s see what happens down the road.

 

El Sabor strengtening presense in the tortilla chip market in Malaysia

Picture taken from El Sabor website

El Sabor, the Greek tortilla chip, is now available in more stores in Malaysia. I first saw this chip at the Cold Storage in Mid Valley. The tortilla chip segment is seeing some activity following the arrival of made-in-China Mission Foods tortilla chips by Mexico’s Gruma, the biggest maker of corn flour and tortillas in the world. El Sabor is the latest player in the market and is priced at the premium level.

Store Check, 6 July 2014 at Aeon Big Bandar Tun Hussein Onn

Gram RM RM/KG
El Sabor Nacho 100 6.0 60.0
Chacho’s Cheesy Cheese 185 5.3 28.6
Chacho’s Spicy Curry 80 2.7 33.8
Mission Tortilla  160 6.5 40.6
Mission Tortilla Tomato  65 2.7 41.5

In Malaysia, Tortilla chip is competing with potato crisps as there is no tradition of eating tortilla chips in dips. To break free from having to compete with the more popular potato crisps, the key challenge right now is the make dips more affordable and start serving tortilla chips with dips.The other approach is to use easily available, affordable local ingredients eg mayonnaise and curry powder to make dips at home.

El Sabor in bracket – Aeon Big Bandar Tun Hussein Onn

 

Cold Storage goes for imported private label range Casino

Cold Storage, the high end supermarket arm of Dairy Farm International, has made available the Casino private label range of products in Malaysia. This is a rather interesting development and has been touched  in one of my earlier blogs on private label. I argue Malaysians like imported products, regardless of whether they are private label or not. As long as they sound and feel exotic, Casino, Waitrose and Marks & Spencer private label range will find a captive market in Malaysia.

It is a clever move by Cold Storage to introduce Casino private label range to preserve its premium image instead of developing its own Cold Storage private label line. However, Cold Storage needs to tell the Casino story. Malaysian consumers are generally not aware of the Casino brand compared with the Waitrose and M&S brands from the UK.

7-Eleven Philippines brings chef creations to satisfy your gourmet needs

You can’t helped to be amazed with 7-Eleven Philippines for coming up with this novel idea of using renowned chef Claude Tayag to introduce the Chef Creations ready meal range. Launched in May 2014, the three Filipino gourmet ready-to-eat foods comprise:

Pulled pork with adobo dip (P95)  – Classic adobo simmered in vinegar

Pork sinigang sa kamias (P75) – Traditional slow-cooked sinigang that uses leaner cuts of pork and vegetables like kangkong and labanos

Pakbet with bagnet (P89) – Pinakbet sautéed in bagoong alamang (shrimp paste).

Dish descriptions taken from http://www.gmanetwork.com/news/story/359024/lifestyle/food/a-sneak-peek-at-the-new-chef-creations-by-chef-claude-tayag

In Malaysia, we do have CP microwavable food in 7-Eleven but are they selling well? So, it is perhaps time to do a Pak Nasser’s nasi lemak or Kamal’s mee goreng mamak AirAsia style for 7-Eleven Malaysia. Probably TV3’s 5 Rencah, 5 Rasa program host Sherson Lian can create something to bring in the crowds.

http://download.sofun.tw/7-11-icecream/

Something unique is always welcome such as with soft-serve ice cream where 7-Eleven and FamilyMart are outdoing each other in Taiwan. There was a news report of people having to queue for half an hour just to buy the 7-Eleven Hokkaido soft serve ice cream made from Japanese cream and cones.

Old packaging

 

New packaging

At the 7-Eleven in China, it is Unifresh not from concentrate (NFC) fruit juice, which has a very contemporary look, ideal for white-collar workers looking for a healthy drink.

The question is what can 7-Eleven Malaysia offer to excite convenient store goers in Malaysia?

Tesco Malaysia bringing fun to private label

Tesco Malaysia has come up with an interesting campaign to target male consumers hoping to pay less but enjoy a luxurious life (Belanja Murah, Hidup Mewah). The two fictitious characters Samy Value (rhymes with the name of the previous Malaysian Indian politician Samy Vellu) and Mat Jimat (or Mr Save) are there to help Tesco consumers save big so they can live big.

By buying Tesco Everyday Value, Mat Jimat is able to save up to buy a private island, while Samy Value is able to own a boat through the savings from Tesco Everyday Value. The other clip shows how they are able to buy big boy toys like submarine, helicopter and even space ship with Tesco Everyday Value.

There are more than 400 Everyday Value items giving considerable savings to consumers. Male consumers, those that are looking to reduce their expenses, may not be too picky on brand names but can be sensitive to prices. The new ‘save big so they can live big’ concept does help to show the more you save, the more you can realise you dream. This private label marketing campaign is more about giving consumers the necessary tools to help them achieve their goal. The way to achieve that goal is to live on Everyday Value private label range!

Tesco knows it is the right time to expose Malaysians with the value-end of the private label range with a view of the impending introduction of the 6% GST in April 2015. By then, Malaysians will be looking for various options to lower their grocery spending and the Everyday Value items will be there to meet their needs.

http://www.tesco.com.my/everydayvalue/

About time Maggi embraces Penang White Curry Noodle

There is a high chance that Nestle may start launching its own Maggi Penang white curry instant noodle in the future to tap opportunities in the premium market.’- 4 May 2014 blog entry

The prophecy has come true. Maggi has finally launched its own version of Penang white curry instant noodle in June 2014, known as Maggi Royale Penang Seafood Curry. The word “white” is omitted so as not to confuse consumers with MyKuali. The Maggi Royale instant noodle claims to be the “best” ever of its kind in the market. Befitting its name as a premium instant noodle, Maggi Royale, is also the most expensive Penang curry instant noodle in Malaysia. The Maggi Royale is selling at RM 7.90 for a four 91g pack at Aeon Supermarket at MidValley, equivalent to RM 21.7 per kilogram vs RM 18.16 per kilogram for MyKuali (RM 7.99).

Aroi, which is available at the same Aeon Supermarket at MidValley, has reduced its price to just RM 6.90 (promo price)  from RM 7.50 as a response to the new threat. Even the packaging of Aroi has changed to a more prominent cover to increase shelf visibility.

Photo taken by Tan Heng Hong

Mini Me Insights store check, April-May 2014

Is Maggi Royale the best?  I am sure the Ramen Rater will be telling us in no time. He was the one who voted MyKuali as the best instant noodle in the world for 2014.

I believe the next trend for Penang white curry instant noodle is to make it available in more convenient cup format so consumers can enjoy it while outside of home. If Penang white curry instant noodle can make it as part of the menu at Mamak stalls with consumers yelling “One Maggi Royale pls” then I will consider it a job well done for Maggi. After all, Maggi goreng is now part of the menu at Mamak stalls.

Photo taken from Curlybabe’s Satisfaction blog

 

More details emerged on Alfamart Philippines foray

More information was revealed by Sumber Alfaria Trijaya on its Philippines foray at its shareholder’s meeting on 25 June 2014.

Summary:

Q3, 2014 – First distribution centre will open
By end-2014 – About 20 convenience stores will open
Within 2 years – 300 convenience stores running
Joint venture partner: Name not disclose. Likely to be SM Group, according to news reports.
Confirmed, it is SM
“We are still planning with them,” Teresita Sy-Coson, SM Investments vice chairwoman said in a text message to ANC, according to the report by ABS-CBN on 7 July 2014.

Sumber Alfaria Trijaya will take a 35% stake in the joint venture.

Teh Gelas introduces PET variant

The latest PET bottle variant was launched in June 2014
OT Group has finally launched its Teh Gelas (Cup Tea) ready-to-drink tea in PET bottle. The product first appeared in the market in thin-wall cup packaging targeting at the mass market selling at IDR 1,000 per cup.  The second wave saw the product upgraded to carton including in single-serve and family packs. Now Teh Gelas is available in PET bottle manufactured using the aseptic cold filling technology. According to OT Group, the PET bottle packaging is aimed at the on-the-go market.
Other competitors including Sosro and Ultrajaya’s Teh Kotak already have products covering both PET and carton as well as returnable glass bottles as in the case of Sosro. OT Group’s Teh Gelas is a later comer but it does one thing at a time. Teh Gelas started out as a very cheap product targeting school children and angkot drivers looking for a cheap refreshment without breaking the wallet. It slowly enhances the prices through packaging innovation, while retaining the original taste.

I believe the next phase of packaging innovation for “Cup Tea” will be in the 1 or 1.5 litre PET family pack. Singapore’s Yeo’s launched its aseptic cold fill PET products in Malaysia in November 2013 and the packaging size now comes in 350ml, 500ml and 1,500ml.

 

Wonda Coffee creating hunger for its coffee

Asahi’s Wonda Coffee latest advertising on major dailies in Malaysia on 23 June 2014 was attempting to create a misleading impression that Wonda Coffee is “selling fast nationwide!” It was just a statement without any concrete evidence to show Wonda Coffee is “selling fast.” The subsequent pages show consumers reaching out to Wonda Coffee with the cooler showing three cans of Wonda coffee left, enough only for three people. Sorry, the rest have to wait. The heading was ” The Wonda-Mania is here” followed by the next page with the statement “Malaysians can’t get enough of Wonda Coffee.”

Is Wonda Coffee really selling fast nationwide? We don’t know for certain unless Asahi backs up the statement with a retail audit data.

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