Wahaha founder’s daughter Kelly Zong (宗馥莉) has announced the launch of KellyOne, a fully customisable HPP fruit juice, in China. KellyOne, named after Kelly Zong, is available in Shanghai from 4 July 2016.
Six series
There are six series with interesting sounding names including Modern Human (摩登新人类) and Gym Enthusiast (健身发烧友). Each series contains five different juices (300ml) and they come with individual ingredients and packaging design. For example Carol comes under ‘Modern Human’ and its ingredients are orange, dragon fruit, apple, pumpkin and honeydew.
The prices for the 300ml bottle range from RMB 28, RMB 38 to RMB 48 with prices varied based on the ingredients used. The selling price of RMB 48 (USD 7.17) for a 300ml juice is considered by many as a move by the brand to move up the premium ladder.
Image from http://www.weiyoubaba.com/a/c56mm.shtml
Fully customisable ingredients
The second approach is to concoct your own juices based on 80 choices of fruits and vegetables. Each bottle can only feature three to 5 fruits and vegetables.
Image from http://www.weiyoubaba.com/a/c56mm.shtml
After choosing the ingredients, users have to choose fruit and vegetables and attach each one of them with a % volume/value.
Image from http://www.weiyoubaba.com/a/c56mm.shtml
Made to order
Once the selection is made only will the juice be produced. This is to ensure there is no inventory and everything is made to order. The expiry date is 7 days as the juice is produced using the HPP technique. The company expects to produce around 1,000 bottles a day. KellyOne is a prime example of making in mine with full customisation.
Bison Consolidated Bhd, the operator of myNews.com convenience store chain in Malaysia, has announced it is buying a 100% stake in Otaru Fine Food Sdn Bhd. Otaru supplies bakery products mainly to myNews.com.
Rationale for buying Otaru
The reason for buying Otaru is well explained in Bison’s announcement on the stock exchange on 13 July 2016. ‘The Otaru Acquisition augurs well for Bison in preparation for managing its own full-fledged food processing centre which it targets to construct and be ready and operational in the financial year 2018. In the interim Otaru will expand its products range and continue to supply Bison’s outlets in the Klang Valley.’
Central kitchen crucial to develop high-margin fresh food business
Bison’s Otaru acquisition paves the way to ensure it has the means to supply its stores with food products from the new food processing centre. 7-Eleven Malaysia currently does not seem to have a central kitchen as it still relies on third-party suppliers like CP, Fuji Bakery Supplies (M) Sdn Bhd, English Hotbreads (Sel.) Sdn Bhd and Cafe Decoral Sdn Bhd.
In Indonesia, PT Modern Internasional, the operator of 7-Eleven, is equipped with a central kitchen, which has undergone phase two expansion. The central kitchen supplied 160 new fresh food SKUs during the first three quarters of 2015 and ended the third quarter of 2015 with 244 fresh food SKUs.
7-Eleven Malaysia adds buns to fresh food line-up
7-Eleven has recently added buns as part of its fresh food range. The buns are made by Fuji Bakery Supplies (M) Sdn Bhd.
However, these buns are not well received. Most of them are approaching their expiry date when the author visited one of the 7-Eleven outlets in Ampang, Selangor.
Stored inside a glass cabinet
There are few reasons why the buns are not popular. The buns are off limit to consumers as they are kept in an enclosed glass cabinet, which was previously used to display fried finger foods such as fish balls and meat balls.
Not strategically located
Moreover, the glass cabinet is hard to open and it is located opposite a rack full of popular branded bread and buns. The moment consumers step inside the store, what they will see first is the branded bread and buns from Gardenia, Mighty White and Massimo, not the bread hidden in the glass cabinet.
Long row of branded bread and buns opposite the 7-Eleven Fresh and Go bunsAnother view of the 7-Eleven Fresh to Go buns in the glass cabinet. Opposite are branded bread and buns strategically located to catch the attention of consumers.
7-Eleven Fresh to Go slightly more expensive than mainstream brands
The price of 7-Eleven Fresh to Go buns is slightly more expensive than their branded equivalent. For example, the 7-Eleven ikan bilis (anchovies) bun is selling at a price of RM 1.00, while Mighty White is priced at RM 0.95.
7-Eleven Fresh to Go Ikan Bilis Bun tastes better but hard to open
Taste wise, the 7-Eleven Fresh to Go Ikan Bilis Bun tastes slightly better than Mighty White’s.
Mighty White vs 7-Eleven Ikan Bilis Bun
But then comes the issue of packaging. Mighty White packaging is easy to open. It takes a lot of effort just to open the 7-Eleven Fresh to Go bun. Even though the Fresh to Go bun is well sealed and protected to ensure its freshness, consumers who are on-the-go are more likely to choose the other more easy-to-open option.
Tightly sealed plastic packaging makes it hard to open
Indonesia example
The Indonesia 7-Eleven serves as a pointer for fresh bakery. The shelf uses the open concept with products within easy reach. The bread comes with the 7 Fresh concept. On the packaging are printed with the words ‘Hygienic, Tasty and Quick’ followed by ‘Fresh Bakery.’
The ‘Fresh Bakery’ section is located prominently opposite the cashier with strong visibility to consumers when they first step into the outlet and when they pay for their purchases.
Ultimately, the bread eating culture is not strong in Indonesia, which makes 7-Eleven bread stands out due to the small choice of packaged bread. In Malaysia, it is hard to compete with Gardenia and Massimo.
Steamed bun?
What 7-Eleven Malaysia can do is to focus on steamed bun, which is what the convenience stores in the Philippines are doing. There is no branded equivalent for steamed bun and the food is well received by all the ethnic groups in the country. This is something to thing about.
Shelf stable yoghurt drink (常温酸奶) is seeing rapid growth in China and may serve as an inspiration for Southeast Asian dairy companies.
Sales of shelf stable yoghurt drink up 70% in 2015
Sales of shelf stable yoghurt drink (常温酸奶) in China expanded 70% year-on-year in 2015, still a commendable growth compared with 2014, which saw an even higher growth rate of 140%, according to ACNielsen. As a comparison, chilled yoghurt only saw an increase in sales of 15% in 2015.
Sales of top three players reached USD 1.94 billion
The top three players Bright Dairy, Yili and Mengniu posted a total revenue of RMB 12.95 billion (USD 1.94 billion) from the sale of shelf stable yoghurt in 2015.
Key success factors
The ability to store at room temperature and a long shelf life is a major selling point for shelf stable yoghurt drink. Being able to transport at room temperature is important as the chilled chain infrastructure is still under developed in China.
Shelf-stable drinking yoghurt is convenient, tasty and has nutritional benefits appealing to modern Chinese consumers. According to Dan Björklund, manager of Center of Expertise at Tetra Pak, “ambient drinking yoghurt is flourishing because it appeals to the lifestyle of the modern day consumer, not just in China but globally.”
Exotic
Ambient drinking yoghurt is seen as exotic with foreign sounding names and origin. Bright Dairy Momchilovtsi uses the Bulgarian yoghurt, while Yili Ambrosial is a Greek yoghurt.
Bright Dairy MomchilovtsiAmbrosial – Greek taste
Junlebao Dairy’s Kefir features a Caucasian lady. Kefir (开啡尔), a fermented milk drink made with kefir “grains” is a novel concept for Chinese consumers. Sales of Kefir in 2015 grew by more than 120%.
Cofco recently launched a new ambient drinkable yogurt in 2016 called 塔莉亚 Telya with the Greek theme.
Yili Ambrosial success story – endorsing popular Hurry Up, Brother reality show
The marketing of shelf-stable drinkable yoghurt is targeted at young consumers, both male and female. Yili Ambrosia is endorsed by the popular 27-year-old actress Angelababy and the 37-year-old actor Li Chen. Both are featured in the Chinese version of Korea’s Running Man reality show, known in China as 奔跑吧兄弟 or Hurry Up, Brother. The show is popular among the young and is now in the 4th season. The key to the success of Yili Ambrosial is being the title sponsor of the second, third and fourth seasons of Hurry Up, Brother.
Yili Ambrosial endorses Hurry Up, Brother
Malaysia – Yeo’s Yeogurt
Yeo’s Yeogurt, launched in Malaysia in early 2015, comes with the healthy goodness of milk and lactic acid, commonly found in yogurt. Yeogurt fills in the gap in ambient drinkable yoghurt and is positioned as a drink for the entire family. Yeogurt is the only product in the ambient drinkable yoghurt space in the country.
Indonesia – Cimory & Heavenly Blush
In Indonesia, the choices for ambient drinkable yoghurt are Heavenly Blush Yogurt Drink To Go (200ml) and Cimory Yogurt Drink.
Cimory
Both Heavenly Blush and Cimory ambient drinkable yogurts are aimed at female who are conscious of their weight and want something that is healthy yet convenient for on-the-go occasion.
Endorsed by pop band JKT 48Part of the beauty regime
Male consumer is a neglected segment in Indonesia
Yili Ambrosial targets men
Ambient yoghurt drink works in Indonesia as in China because it does not rely on the chilled chain. The potential of this segment has not been fully realised in Indonesia.
Opportunities exist to expand the focus beyond female to target young Indonesian men. This is something marketers can think about in turning ambient yoghurt drink into a lifestyle drink for young Indonesians, both male and female.
In Malaysia, McDonald’s has ditched its iconic red background and replaced it with green to celebrate the major Muslim holidays of Ramadan and Idul Fitri (Hari Raya), while retaining the yellow arch.
Green rules
The name of McDonald’s on the cup has been changed to green, while the cone of the limited-edition Cendol Soft Serve Ice Cream is in green.
As green is the colour often associated with Raya, the words and some of the bowls and plates for the new festive menu are shown in green. This shows how far McDonald’s can go in localising its menu and branding to improve acceptance.
Thailand’s Ichitan latest move in Indonesia has rolled out its Yen Yen Liang Teh in 400ml PET bottle. Yen Yen is a herbal drink containing 7 Chinese and Thai herbs – safflower, chrysanthemum, bael, jiaogulan, mesona, pure green tea, monk fruit and mulberry leaf.
According to the company, Yen Yen ‘can prevent and reduce aphthous ulcer and digestive tract symptoms; mouth sore, rotten lip, rotten tongue, sore throat, hearse, thirsty, cough, eye burns which happen from unbalance life such as sleepless, eat too much fried stuff, dehydrate and digestive symptoms.’
Competes against OT Liang Cha
OT Liang Cha
The new Yen Yen Herbal Tea competes against OT Liang Cha, a new RTD herbal tea from OT Group first launched in the second half of 2015. Interestingly both Yen Yen and Liang Cha are in red bottle. The choice of red bottle is likely to be inspired by China’s famous RTD herbal drink Wang Lao Ji in the iconic red can or to use red to refer to the Chinese origin of the herbal tea.
Cool Tea
The key marketing message of its competitor OT Liang Cha (350ml PET) is ‘Yang Panas Jadi Adem,’ which can be loosely translated as ‘cooling down things that are hot.’ These ‘hot’ things include spicy food, hot weather and feeling of anger/frustration.
Yen Yen is the companion for spicy food
Unlike OT Liang Cha, the new Yen Yen focuses on the eating occasion. The taglines are ‘Temennya Makan Pedas’ or spicy food companion and ‘Bikin Pedes Jadi Nyes Nyes.’ In Malaysia, the TVC for Mamee Cool Tea takes a similar approach of promoting the drink to help to cool down the body after eating spicy food and ‘heaty’ durian.
Future opportunities for Ichitan in Indonesia
So far, Ichitan has made available 2 RTD tea and 1 RTD herbal tea in Indonesia – Honey Lemon Flavoured Green Tea (420ml PET), Lychee Lemon Flavoured Green Tea (420ml PET) and Yen Yen Herbal Tea (400ml PET).
From Ichitan Opportunity Day FY 2015 – http://ichi.listedcompany.com/misc/PRESN/20160324-ichi-oppday-4q2015.pdf
Given the rich portfolio of products, Ichitan still has plenty of products that it can sell in Indonesia including RTD tea in different flavours and pack sizes as well as chrysanthemum tea and Bireley’s carbonated soft drink. It is interesting to see what’s Ichitan next move in the country.
F&N appears to have over estimated the demand for its limited-edition glass bottle 100 Plus featuring pictures of Brazilian football legend Pele and current Brazil star, Oscar. According to F&N Beverages Sales Manager Chen Vong Fui while speaking to The Star in April 2016, these bottles would only be available for two months from April to May 2016.
Still available in July 2016
At the time of writing on 12 July 2016, the limited-edition 100 Plus in glass bottles can still be easily found in hypermarkets, supermarkets and 7-Eleven convenience store.
Image taken at Aeon Big Ampang on 10 July 2016. Selling at RM 3.50
At Aeon Big Ampang, the limited-edition 100 Plus was selling for RM 3.50, while at 7-Eleven, the same product is on promotion at RM 2.70, a clear sign that it is trying to clear the inventory.
First time 100 Plus in glass bottle
The limited-edition 100 Plus in bottle is worth collecting as it is the first time the company is introducing it in glass bottle in 33 years.
Beyond the reach of ordinary consumers
However, after most of the collectors have bought the limited-edition bottles, the remaining glass bottle does not have the mass market appeal as they are expensive. As a result, F&N is finding it hard to clear the remaining stock and that is why we are still seeing the expensive glass bottles on store shelves.
Updated: Destocking
100 Plus glass selling at a reduced price of RM 1.99 at Hero Supermarket as of 24 July 2016
Selling at RM 1.99 at Hero Supermarket as of 24 July 2016.
The Say it with Pepsi emoji bottles and Revive in 390ml are now available at 7-Eleven convenience stores in Malaysia. The promotion period is one month from 5 July 2016 to 1 August 2016. Each bottle is selling for a price of RM 0.99 (USD 0.25). This marks the expansion of the RM 0.99, 390ml pack into the convenience store channel. As a recap, the RM 0.99 Pepsi and Revive first appeared in 99Speedmart mini market in May 2016.
Emoji bottle distribution channel and launch timeline
At the moment, the emoji bottles are available in 390ml, 500ml and 1,500ml PET bottles but not in cans.
In terms of the launch timeline, the emoji bottles in 390ml first appeared through 99Speedmart, followed by the 1,500ml emoji bottles in the supermarket channel before being made available at 7-Eleven in all three formats – 390ml, 500ml and 1,500ml.
Fizzy drink price war at 7-Eleven
PepsiCo has started a price war in 7-Eleven by selling the 390ml Pepsi and Revive with i-HYDR8 at an affordable price of RM 0.99 for a period of two months. In addition to the RM 0.99 bottle, the company is also making available the new 500ml Revive with i-HYDR8 at RM 1.50 (non i-HYDR8 normal price is RM 2.50), thus competing directly with 100 Plus (500ml).
The price for the 500ml Revive with i-HYDR8 will remain at RM 1.50 for five months from 5 July 2016 to 2 January 2017. Would 100 Plus follow suit by coming up with something to match the same price.
390ml Revive and Pepsi at 7-Eleven
500ml Revive with i-HYDR8 still not available
At the time of writing on 12 July 2016, the 500ml Revive with i-HYDR8 has not arrived in 7-Eleven. As for the RM 0.99 Revive and Pepsi, only few 7-Eleven outlets have started selling them despite the promotion starting on 5 July 2016.
7-Eleven counter. RM 0.99 for Revive 390ml and RM 3 for 2 Mountain Dew
Display issues – Not celebrating the emojis
At 7-Eleven
The way the emoji bottles are displayed on shelf defies the reason why these fancy bottles are rolled out in the first place. In one of the 7-Eleven stores, the poster on the rack shows images of Say it with Pepsi campaign featuring the cute emojis. However, the emojis are hidden from the products on display underneath. What consumers could see was the usual Pepsi logo.
The same applies to the products in the picture below in one of the 7-Eleven outlets. After the author adjusted the facing, the bottle becomes more visually arresting.
Pepsi emoji as collectibles
Author’s personal collection
Would the emoji design spur the sales of Pepsi? The author has already collected 27 different emoji designs (390ml) and is eager to expand his collection. It makes it more worthwhile from a collector’s point of view to have the emojis in cans.
Key takeaways
PepsiCo has escalated the price war to the 7-Eleven convenience store, potentially impacting F&N’s 100 Plus and Coca-Cola. PepsiCo should celebrate its cute emojis by giving these emojis more prominent shelf facing. To improve the appeal with collectors, the Say it with Pepsi campaign should also include the can version.
An update as of 8 October 2016
Image taken at Aeon Big Mid Valley on 8 October 2016
PepsiCo has launched emoji cans few weeks after the post was published. Also, the bottle has now being rotated to show the emoji to attract consumers.
A&W Cream Soda has silently joined The Coca-Cola Malaysia family. The first A&W Cream Soda was spotted at 99Speedmart in 390ml for RM 1 in May 2016.
In July 2016, the A&W Cream Soda is now available in the mainstream retail channel in 1.5L (PET), 500ml (PET), 330ml (can) and 330ml x 4 multipack.
Comparing A&W Cream Soda with F&N Ice Cream Soda
F&N Ice Cream Soda is the closest competitor. Comparing the two, A&W Cream Soda has marginally higher energy, sugar and carbohydrate level bust the difference is insignificant.
Japanese-inspired bottled water has become a trend in Malaysia lately. First we have the Jayze Izumi This is Water with pH 8-8.5 alkaline water and now we have Yumi’s MOMAwater.
Alkaline water – Jayze Izumi
Jayze Izumi, a model-actor-film-maker, first come up with the concept for The is Water after finding it hard to get alkaline water in Malaysia. According to the model who has been in and out of work in Malaysia, most of the water in this region is ‘acidic or neutral at best.’ He felt a great need for alkaline water as according to him in an interview with The Malay Mail, ‘in Japan, we care a lot about our water and in particular, alkaline water. We don’t just drink it, we use it for various purposes, from cooking to praying. To make soba, for example, you must use alkaline water.’
Picture from This Is Water featured in The Malay Mail article dated 5 June 2016
MOMAwater by Yumi – 100% safe
Image from MOMAwater Facebook
MOMAwater from Sibu, Sarawak is said to be the ‘safest bottled water.’ The water has 99.9% purity, O3+UV sterilization and stored in high quality acetic-acid free bottles. MOMAwater uses industrial RO purification to remove all microscopic ions, minerals and heavy metals. It claims to be suitable for expectant moms and children.
Story to tell
Similar to Jayze Izumi, Yumi, a Japanese, who followed her husband to migrate to his hometown in Sibu has her image imprinted on the bottle. Both Jayze Izumi and Yumi are good looking. Naturally, the founder is also the product endorser.
The marketing message of This is Water and MOMAwater evokes the message of purity and style. MOMAwater goes one step ahead with a story about Yumi.
Image from MOMAwater website
Yumi seems to live a life that is the envy of urban folks in the Klang Valley who have to brace the monstrous traffic jam everyday and long working hours. Yumi’s life in Sibu is less hectic. She does not stop there. Yumi, according to the website, is a quintessential modern entrepreneur mom. She is ‘a confident mother, a consummate cook, an adept Japanese language teacher, and the proud owner of Sibu’s leading blog shop, Sakura Box’.
Yumi ‘makes it a point to cherish every moment, by appreciating the beauty in the smallest things,’ which is reflected in the bottle design and the costumes worn by the promoters flashing a friendly smile.
Image from MOMAwater Facebook
This reminds me of Pocari Sweat’s marketing in Indonesia, which features Haruka Nakagawa, a member of the idol group JKT48, which stresses the cuteness factor.
Haruka endorsing Pocari Sweat in Indonesia
Product with the Japanese element sells in Malaysia but they tend to come with either the premium image (Shojikiya) or the discount image (Daiso). This is Water is priced at a premium at RM 5.90 for a 500ml bottle at Cold Storage, which is even more expensive than Evian. In contrast, the 300ml MOMAwater only sells or RM 0.60 at Giant, while the 1.5L is priced at RM 2.29.
For a newcomer liker MOMAwater selling in the mainstream grocery channel such as Giant, it has to compete with other well known local brands. It would be more prudent to focus on Japanese restaurants and Japanese food outlets to accentuate its Japanese element.
Les’ Copaque Production Sdn. Bhd, the creator and producer of the highly acclaimed Malaysian animation television seriesUpin & Ipin has signed a memorandum of understanding with MGV Industries Sdn. Bhd, a soft drink manufacturer.
Chocolate malt-flavoured drink for children
Under the memorandum of understanding, the two companies will produce chocolate malt-flavoured drink under the Upin & Ipin brand to be sold in Malaysia and Indonesia starting August 2016. The three-year contract is valued at RM44.36 million (USD11 million). Children will be the key target of the new drink.
The main products of MGV Industries are Maduria carbonated soft drinks, Maduria isotonic drinks, Frutela fruit flavoured soft drinks and S-Sotic sparkling fruit juice.
Upin & Ipin isotonic drink in the offing
Apart from Upin & Ipin chocolate malt-flavoured drink, the companies will produce isotonic drinks under the Upin & Ipin brand as well as juices. If this is an isotonic drink for children, it will be the first of its kind in the country.
Existing Upin & Ipin juices
There are already existing Upin & Ipin juices in the market. The juices are made by Cozzo Food Industries Sdn Bhd for UI Trading Sdn Bhd, a unit of Les’ Copaque Sdn Bhd. It is not know if the new MoU with MGV Industries will affect the current cooperation with Cozzo Food Industries.
Commodifying Upin & Ipin
The beverages will strengthen the existing lineup of Upin & Ipin branded merchandises ranging from bags to toys. The website http://www.upinipinstore.com has a complete list of Upin & Ipin products.
Upin & Ipin has also branched out into foodservice. The network of Upin & Ipin food outlets in the country has now grown to 15.
BoBoiBoy Koko
The new Upin & Ipin chocolate malt-flavoured drink will come head on with BoBoiBoy Koko, an existing powdered chocolate malt-flavoured drink based on the BoBoiBoy cartoon franchise.
BoBoiBoy vs Upin & Ipin
Both BoBoiBoy and Upin & Ipin are highly successful local animations, locally and abroad with a strong following in Indonesia.
At the moment, Upin & Ipin packaged food is concentrated on fruit drink, while BoBoiBoy is into powdered chocolate malt-flavoured drink. With Upin & Ipin moving into soft drinks, this may spur the owner of BoBoiBoy to start thinking of how to leverage the brand to come up with more packaged food products for its fans in Malaysia. In Indonesia, one of the largest milk producers Indomilk, has featured BoBoiBoy on its milk as part of the launch of BoBoiBoy The Movie in 2016.
Indonesia’s Indomilk BoBoiBoy milk- 2016
BoBoiBoy OldTown meal as part of the launch of the BoBoiBoy The Movie in 2016
Malaysia’s strong animated industry offers new character choices
The strength of the Malaysian animated industry is astounding. BoBoiBoy and Upin & Ipin have made it regionally. Other local animations include Ejen Ali, Rimba Racer, Origanimals and SuperSquad can potentially become the next to grace the packaging of food and drinks.
Ejen Ali (Agent Ali)
In fact, Forceone Global has licensed the characters from ‘Super Squad’ on its own brand of mineral water. Kincirmas Sdn Bhd has launched a range of fruit flavoured drinks for children based on the SuperSquare animated TV series in November 2015. The SuperSquad flavoured juice range included mango, ice lemon tea, blackcurrant and lychee.
Image by the author at MIHAS 2016
PS Food and Beverage soft launched Ummi Origina at MIHAS 2016. The product features Ummi, a character in the Ummi Tales of Wisdom animation by Hud Hud Media Sdn Bhd. The product is oriented towards the Muslim market as it features a woman in the Muslim attire.
Image taken by the author at MIHAS 2016
The children’s drink market is currently ripe for the taking. It will not be surprise to see more local food and drinks companies embracing local animation characters to target the children market going forward.
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