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Delica Stop & Smell the Coffee has a winning product – Mocha Peppermint White Coffee

Most of use have heard this over the airwaves “Stop & Smell the Coffe, Delica” even before the coffee was made available in stores. Delica coffee, manufactured by iCoffee Living Sdn Bhd and distributed by OEL Group of Companies, can now be found in most outlets. The Delica coffee is not to be confused with the Switzerland-based Delica AG, even though both are into coffee manufacturing.

Delica competes in a crowded instant white coffee market. The packaging is spartan but easy to recognise, thanks to the use of bold colours.

The only thing that makes Delica special is the unique Mocha Peppermint white coffee, which can be served cold and comes with a minty flavour. This is a product that stands above the rest and needs to receive more marketing budget. As for the Rich/Classic instant white coffee, they do not have a unique selling point compared to competitor products such as PappaRich stevia white coffee or the Kopiko L.A. (Low-Acid) white coffee. Therefore, personally, i feel Mocha Peppermint white coffee does have some potential to appeal to young coffee drinkers.

Goat’s milk becomes an unstoppable trend

Lately, Baraka goat’s milk powder has grabbed my attention. The packaging features a Malay woman in hijab, which shows this goat’s milk is clearly aiming at the Malay market. Goat’s milk is popular among Malay consumers. Goat’s milk’s nutritional value is recognised by Prophet Muhammad and is included as part of the Sunnah Diet along with olive oil, date, honey and other ingredients. Goat’s milk is known for being low in lactose, does not cause allergy, easy to be digested, the best milk after mother’s milk and high in nutritional value.

There are many similar products in the market claiming goat’s milk is good for health because it follows the Sunnah dietary requirement of Prophet Muhammad.

Goat’s milk is also marketed as the best milk after mother’s milk. See the example of HiGoat. Among the claims made about HiGoat are good for digestion, alkaline, improve memory, enhance the immune system, prevent erectile dysfunction and low in sugar.

Most of these goat’s milk products are sold through multi-level marketing. The company behind the Baraka product, Mozac Medicare Sdn Bhd, sells its products through a wide range of channels including direct sales, agents and online. Recently, it has made Baraka available in the modern trade channel such as Giant and Cold Storage as it goes mainstream. The goat’s milk comes from the Netherlands. Goat’s milk has become a trend in Malaysia as companies capitalise on the nutritional benefits of goat’s milk and the Sunnah diet to popularise a wide range of goat’s milk-based products including powder, supplement and cosmetics.

Baraka at Cold Storage

Cross-border delivery: From Thailand straight to Thai restaurants in Malaysia

How do Thai restaurants and Thai grocers in Malaysia get their supplies of Thai cooking materials and packaged food? The answer is simple, the supplier will dispatch a truck, which will drive hundreds of miles from Thailand to deliver the goods to your doorstep, thus skipping the middlemen.

The most popular items carried by these delivery trucks from Thailand are sauces, essential for any good tasting Thai food.  They range from Maepranom brand sweet chili sauce, fish sauce to dark soy sauce and even bags of fresh herbs. The existence of such delivery truck means the Malaysian distributors are losing a big chuck of their foodservice sales and has to rely more on the consumer pack business.

Alpecin making a mark for itself in Malaysia hair care

Alpecin is a new caffeine anti-hair fall shampoo that is making a mark for itself in Malaysia with its novel concept of using caffeine to tackle hair loss problem. There are many brands in the market aiming at promoting or preventing hair loss but nothing grabs the attention as coffee. Forget about the difficult sounding name Alpecin, now consumers will remember only caffeine shampoo and the red and white logo with strange sounding name written on it.

Alpecin is distributed by DKSH and is available at Guardian. Lazada and other B2C e-commerce sites are also selling the product online.
The brand is even featured on the BFM business station. Questions asked, can we get the same benefit from drinking coffee?

The brand is also promoting itself through advertorial on local newspapers. Here is an example in a Chinese-language daily. With strong marketing, Alpecin is increasing brand awareness and consumer interest through demonstrated science-based evidence, the “Germany’s no 1 male hair care” credential and last but not least the use of the novel active caffeine ingredient.

Jaya Grocer imposing substantial hike on US imported products, implication for US exports to Malaysia

With the ringgit falling off the cliff, importers are feeling the heat and sooner or later have to passed on higher prices to consumers and this may have a detrimental impact on sales. Trendcell, the operator of premium supermarket chain Jaya Grocer in Malaysia, has announced a “substantial” price hike “on all US brands of imported products” including spreads, drinks and cereals.

As the ringgit is still holding up well against the euro and Australian dollar, companies are less pressured to increase prices on imports from the European Union and Australia. However, this is not the same for imported products from the US (see details below), China (food and non-food), the UK (foodstuff) and South Korea (foodstuff and cosmetics).

Now, a closer look at what Malaysia imports from the US to see what will be impacted by the rise in the US currency. Food and kindred products (USD 219.7 million) will be impacted the most, followed by agricultural products (USD 200.8 million). The implication from the weakening ringgit for importers is they will have to look for other cheaper sources of products and the key beneficiaries will likely to be Australia and New Zealand, which have the advantage in tariff and geographical proximity.

Promoting Iced Nescafe through BTL activity

At Aeon Big Cheras Selatan, August 2015

It seems ordinary but this is one way Nescafe uses BTL marketing to promote its instant coffee in Malaysia.  The message is simple, you can use the Nescafe instant coffee to make Nescafe Ais (Iced Nescafe). Hey, who does not know how to make iced coffee. What Nescafe wants you to know is instant Nescafe can be enjoyed cold too. Such BTL activity creates an effective opportunity to promote Nescafe instant coffee and to acquire new users.

So What’s your Frappe?

Fernleaf CalciYum popsicle yogurt engaging young consumers

How to ensure your child eats yogurt? Fonterra Fernleaf CalciYum yogurt for kids has added some fun element to its CalciYum yogurt in Malaysia. Some of us are already making yogurt popsicle at home. Now, CalciYum wants to engage young consumers to make their popsicle using CalciYum yogurt. Adding to the appeal are 32 collectible popsicle sticks to collect. Shifting from consumption to experience does help strengthen consumer attachment to the brand, thus laying the foundation for further consumer engagement.

F&N Farmhouse moves into UHT segment

In Malaysia, the F&N’s Farmhouse range of 100% Australian fresh milk now comes in UHT, which marks the brand’s extension into the UHT space. The new Farmhouse long-life UHT milk provides consumers with a more upmarket alternative to the existing F&N Magnolia UHT sterilised milk but slightly cheaper than other imported 100% Australian fresh milk.

On par with its premium image as a 100% Australian milk, the new Farmhouse UHT comes with the tagline “Any fresher, you’d have to go down under.” The UHT range consists of fresh milk and low fat milk.

As an imported milk, the price is more premium compared to its local competitors. Consumers receive the assurance of knowing the milk comes from Australia. It also gives them a bit of savings of few at least RM 0.50 if they buy Farmhouse UHT instead of Pauls, Pura or Country Goodness.

Carbonated Soft Drink: Est now widely available in traditional trade, foodservice channels

Phase one penetration of Est carbonated soft drink into the sundry shop and the foodservice channels in Malaysia is proceeding well. Est posters and the actual products can now be easily seen in these premises.

F&N Beverages Marketing Malaysia Sdn Bhd engaged in product sampling activity in conjunction with the Balik Kampung road safety campaign organised in partnership with the Automotive Association of Malaysia (AAM) and Touch ‘n Go. A total of 200,000 cans of free Est were given to motorists in July 2015. myCola is officially dead and has now been replaced by Est.

Unlike Coca-Cola’s strategy of engaging consumers at the modern retail channel eg 7-Eleven convenience store with RM 1 promotion and sampling at modern supermarkets and hypermarkets, F&N is generating demand through the peripherals to gauge consumer response. There is a possibility Est will only move into the modern retail outlets in the later stage once strong demand is seen or will it remain outside of the modern retail channel?
At the moment, it appears Est is using the same approach of myCola where it avoided the modern retail channel, which tends to charge a high listing fee. The question is will Est be able to compete with Coca-Cola’s preemptive move of placing RM 1 PET bottle drink in the traditional trade channel. In the convenience store channel, Coca-Cola has the 250ml slim can priced at RM 1.50 at 7-Eleven for those looking for an affordable drink or portion control. The normal 325ml can is priced at RM 2.15.

Another development:

F&N’s Oishi RTD tea will now come in the 300ml tin format. The existing product is sold in 380ml PET.

Instant noodle: New Otentiq Cheezy curry, mushroom from Carjen

Cheese-based instant noodle has become a new innovation in the Malaysian instant noodle scene. The new Otentiq range offers consumers something different from the current instant noodle fads of white curry noodle and Korean ramyun by offering the “best of both worlds” – Asia (curry/mushroom) and Europe (cheese). The CarJen Food Otentiq range comes with the Cheezy Mushroom and Cheezy Curry flavours. The 4x100g instant noodle claims to use high quality cheddar cheese and is free from trans fat and cholesterol. If one feels the cheddar cheese content is too little, they can top up with other cheese.

The Otentiq range is positioned as a premium instant noodle on par with MyKuali. However, the product does not command good shelf presence, located on the the lowest shelf, at the Giant supermarket at South City Plaza. MyKuali equally does not have a good shelf space, located on the top shelf, but its strong brand means if consumers are really after MyKuali, getting prime shelf space doe not make sense since it will incur higher placement cost.

As for the Carjen Nyonya Curry Laksa, this instant noodle can now be found at Giant supermarket. Previously, as far as I am aware, the Nyonya Curry Laksa was only available in foreign market ie Taiwan. I did mention in one of the earlier blog posts, being on the list of The Ramen Rater means presents the brand with a good opportunity to tap the domestic market. Now, Carjen Nyonya Curry Laksa is available in hypermarket and the packaging now comes with with Ramen Rater #4 best in the world credential.

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