Bangladesh’s Pran to open door into Indonesia, new products for Malaysia

By

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22nd November 2016

SIAL Interfood 2016 saw the participation of Bangladesh’s biggest processor of fruits & vegetable Pran Foods Ltd. The major food and drinks event was held in Jakarta on 9-12 November 2016.

After successfully entered neighbouring Malaysia with its juice range and other foodstuff, Pran is looking to replicate its success in Indonesia, a predominately Muslim country with an even larger population of 250 million people compared to Malaysia’s 30 million.

Pran’s plans for Malaysia

Pran’s mango juice is the company’s best selling product in Malaysia. The company said it has recently launched Tango flavoured soft drink in the general trade channel in the country in October 2016.

It will be launching Active milk-based drink with fruit flavour in Malaysia in December 2016. This product is aimed at children and comes in a 170ml bottle. The key ingredients are milk powder and lactic acid.

Bangladesh workers ready consumers for Pran

Pran has a ready market for its products in Malaysia as there are a large number of Bangladesh workers, both legal and undocumented, currently working in the country mainly in the construction sector. They form the key buyers of Pran’s foodstuff such as energy drinks, biscuits and culinary products including rice and spices. Juices are mainly targeted at local Malaysians.

Likely strategy in Indonesia

Pran does not enjoy such an advantage in Indonesia with the absence of a sizable Bangladesh workforce there. In most cases, mango juice will form the main thrust as in the case of Malaysia when penetrating into the Indonesian market.

Calbee Wings introduces snacks for millennials and Generation Z

By

Tan Heng Hong

-

21st November 2016

Joint venture with Japan’s Calbee

PT Calbee-Wings Food has released Potatobee dan Krisbee potato snacks in Indonesia. The new entity was formed in July 2013 in a 50:50 joint venture with a special purpose vehicle (SPV) and Indonesia’s Mitrajaya Ekaprana, a member company of Wings Group. The SPV is 90% owned by Calbee and 10% by Itochu.

Production starts in August 2016, projected revenue

Calbee-Wings Food commenced the production and sales in August 2016. The revenue target for the 12 months ending March 2017 is JPY 1,083 (million yen) equivalent to USD 9.8 million. The Indonesia operation is expected to contribute 3% to the projected overseas revenue of Calbee for the 12 months ending March 2017.

For millennials and Generation Z

Potatobee is aimed at millennials aged between 17 and 24, while Krisbee is for children from 9 to 16 years of age, also known as the Generation Z. The 31-year-old actor Junior Liem is the brand endorser for the two brands.

V-cut technology

The unique selling point of the two new snacks is the use of the V-cut technology to offer a rich potato texture and aroma.

Wings two joint ventures with Japanese firms

Calbee-Wings is the first of the two Wings joint ventures in Indonesia to commence operation in the second half of 2016. The other is the joint venture with Ezaki Glico for the production and sales of ice cream. The two joint ventures also signified the successful partnership between a local firm with extensive distribution network and experience in FMCG with two leading Japanese food companies – Calbee and Ezaki Glico. It also marks the deepening engagement of Japanese companies in the Indonesian food market.

Key personnel

Djien Gie So, Managing Director Calbee Wings

Unsweetened Ito En Oi Ocha debuts in Indonesia, Malaysia

By

Tan Heng Hong

-

21st November 2016

Flash back to the end of 2015 when the author mentioned Japan’s Ito En was likely to introduce Oi Ocha Green Tea in Indonesia in 2016 with its local partner Ultrajaya Milk Industry and Trading Co Tbk. This has became a reality. Japan’s number one green tea is now in Indonesia and is available at Lawson convenience store. However, the reach is limited as there were only 38 Lawson outlets nationwide at the end of 2015.

When the author visited the Lawson convenience store in Jakarta, the outlet, Oi Ocha Green Tea was no where to be found. In a nation fond of sweet beverages, unsweetened green tea remains a niche category.

Now available at Lawson outlets

Ito En Oi Ocha available at 7-Eleven in Malaysia

In Malaysia, Ito En Oi Ocha was also recently spotted at the 7-Eleven convenience chain in October 2016. It is distributed by Koike (M) Sdn Bhd. Unlike Indonesia, there is an existing market for unsweetened green tea as consumers accept the unsweetened taste of tea. One of the leading products in the unsweetened RTD tea space category is Pokka Olong Tea (no sugar).

Matcha the way forward

For the Indonesian market, matcha is extremely popular. This food ingredient and has garnered a lot of consumer attention, thanks to the high antioxidant health benefit and unique taste. A number of new innovations in both the packaged food and foodservice industries have incorporated matcha.

Image below shows the interest over time for ‘Matcha’ in Indonesia – Google Trend

RTD tea brand owners can innovate by introducing the low sugar version or even the unsweetened matcha tea to tap into the popularity of matcha in Indonesia.

Klip Klip – Frisian Flag sweetened condensed milk packaging innovation

By

Tan Heng Hong

-

20th November 2016

The sweetened condensed milk (SCM) category (susu kental manis or SKM) is a huge market in Indonesia. The fortified sweetened condensed milk is often consumed with hot water, coffee or used in food preparation to sweeten the food such as bread or dessert.

Faced with an already high penetration for SCM, growing the segment proves to be an interesting challenge for Frisian Flag, the local unit of FrieslandCampina.

Frisian Flag’s key strategy to win the SCM market is to focus on packaging innovation. In addition to can, the Frisian Flag SCM is available in stand up pouch and sachet.

Klik, Tarik, Tuang

In October 2015, Frisian Flag introduced a simple and convenient way of opening the SCM can. With a three simple steps of Kilk, Tarik and Tuang (click, pull and pour), the content can be easily poured from the tin.

Klip Klip

The “easy open lid” packaging does not solve one pertinent issue that is how to store the content after the tab is removed. Now, exactly one year after the easy open lid, Frisian Flag introduced a new solution for storage. The new lid is now smaller and is designed to fit an anti-slip plastic device called Klip Klip. The new gadget offers good resealability function.

https://www.youtube.com/watch?v=q3HWLlREqgA

The new lid shape also allows consumers to creatively pour the SCM on their bread to turn it into a work of art. This has the direct effect of strengthen the ‘joy’ aspect of marketing to kids who are the key consumer of SCM.

The example of Frisian Flag SCM shows how a mature category can still connect with consumers by coming up with solution to make consumption more convenient.

Different demographic focus for FrieslandCampina coconut flavoured UHT milk

By

Tan Heng Hong

-

20th November 2016

The FrieslandCampina’s Frisian Flag coconut flavoured UHT milk, introduced in early October 2016, proves to be a successful launch in Indonesia. This prompted the introduction of a similar product in Malaysia under the Dutch Lady Brand in early November 2016. However, the Dutch Lady Coconut Delight is only available for a limited period only as part of the “Spreading the Shock (Syok)” campaign.

Different demographic focus

The television commercial for the new Dutch Lady Coconut Delight is targeted at children. The focus is about the fun from the coconut flavour. In Malaysia, flavoured milk is geared towards the children market.

In Indonesia, the unique flavour of coconut is emphasised but the target audience is adults. The television commercials concentrate on what adults feel about the new coconut delight. The hashtag is #kepoinrasanya.

According to Wikipedia

“Kepo is an Indonesian slang, which comes from Chinese Hokkien dialect (which is usually used and spoken by some Chinese communities in Medan, Palembang, and Pekanbaru) ‘Kaypoh’ which means ‘really curious’. It defines a condition when a person wants to know about everything.”

Encouraging adults to drink more milk

As people grow older, they will consume less milk. The Frisian Flag Coconut Delight and the new Indomilk Banana Milk are clearly positioned to excite Indonesian adults with the trending coconut flavour to get them to drink milk again.

Sunquick unveils new RTD juice for children (Update)

By

Tan Heng Hong

-

19th November 2016

Barkath CO-RO Manufacturing Sdn Bhd, the maker of Sunquick juice cordial, announced on 11 October 2016 the launch of a new range of ready to drink (RTD) fruit drink for on-the-go or at home.

Four flavours

The Sunquick Fruit Drink is available in four flavours Mixed Mango, Apple, Berries and Orange. They contain vitamin C (9mg per 100ml serving) and do not have artificial flavours, colours or sweeteners. The total sugar is 11g per 100ml and the energy is 196kJ per 100ml.

Two sizes – 125ml and 200ml

It is available in two sizes 125ml and 200ml with a smart Z-straw to reduce spillage. The drinks are packed in Tetra Pak’s Tetra Brik Aseptic. The small pack sizes are ideal for children. The 125ml is selling for RM 1.00.

Distribution channel

At the time of writing, the Sunquick Fruit Drink is not available at major hypermarket chains. The author only managed to get hold of the 125ml at a provision goods store in Petaling Jaya – Kamal Agencies. This probably suggests Barkath CO-RO is focusing on the traditional trade for the Sunquick Fruit Drink range in the initial phase of roll out.

The Sunquick official Facebook also does not have any information on the new Sunquick Fruit Drink, which suggests the company has yet to fully mobilise its team for the marketing of the RTD range.

Updated

Sunquick display at Mydin – 10 December 2016

The Sunquick RTD has entered the modern trade channel including Mydin, Cold Storage, Tesco and 99 Speed Mart. The Sunquick display at Mydin is a Back to School campaign encouraging consumers to bring home a pack of five for their school going children.

At 99 Speed Mart, the RTD comes in a trial pack bundled with the Sunquick cordial.

To encourage trial, Sunquick is hitting the road with Sunquick vehicle offering free trial of the RTD juice drink.

Cowa extends into virgin coconut oil (VCO)

By

Tan Heng Hong

-

19th November 2016

The manufacturer of Cowa coconut water, Coconut Water (Cowa) Sdn Bhd, showcased its newest product at Taste Fully Food & Beverage Expo 2016 at Mid Valley Megamall in early November 2016.

Virgin Coconut Oil

Also known as VCO, Cowa’s virgin coconut oil is ‘centrifuge extracted from fresh coconut meat’ and is laden with anti-oxidants, medium chain fatty acids, capric acid, lauric acid, caprylic acid and vitamin E.

Centrifuge extracted

According to Cowa, there are four production techniques to produce coconut oil – centrifuge extracted, cold pressed, expeller pressed and refined, bleached and deodorised (RBD).

The manufacturer uses the centrifuged extracted technique. This is how the company describes the method:

“Centrifuge extraction is the least intrusive process where virgin coconut oil is extracted from fresh coconut milk, keeping its natural nutrients intact. It has a very mild coconut taste and is packed with anti-oxidants.”

Natural progression to VCO

Cowa is likely to be the first local coconut water producers to move into the VCO category. This move is somewhat predictable as US-based All Market, the maker of Vita Coco, introduced its first Vita Coco Coconut Oil in August 2014. The raw and cold-pressed Vita Coco Coconut Oil is certified organic by the USDA. It is available in 18-ounce PET jars and 14-ounce flint frosted glass jars for beauty, cooking or wellness.

All Market has recently introduced Organic Extra Virgin Coconut Oil in mini pouch. The 100% raw, cold pressed coconut oil in a 7.5ml squeeze pack.

It would be interesting to see if Karta will also follow the footstep of Cowa into the VCO space.

Glico ice cream launched in Indonesia

By

Tan Heng Hong

-

18th November 2016

PT Glico Wings held a press conference on 16 November 2016 to announce the launch of its new range of ice cream for the Indonesian market.

50-50 JV with Ezaki Glico

The company, established on 27 September 2013, is a 50-50 joint venture between Indonesia’s Mitrajaya Ekaprana (Wings Group) and Japan’s Ezaki Glico Co., Ltd. The business of Glico Wings is to manufacture and distribute ice cream in the country. The new entity was previously scheduled to start business in January 2015 but operation was delayed until the end of 2016 due to the delayed in factory construction.

Unilever owns 70% market share

In Indonesia, ice cream is dominated by Unilever Indonesia with a 70% market share, said Glico Wings brand marketing manager Nando Tampubolon. The second biggest player is Campina with 20% and the rest are Indo Icecream (Indofood), Diamond and other small players. Glico Wings plans to become among the top three players in the ice cream market in 2017.

Targets 10-45 years old

Glico Wings ice creams are aimed at consumers age 10 to 45 with prices ranged from IDR 1,000 (USD 0.75) to IDR 12,000.

The key products are:

Waku-Waku for kids (5 variants including Happy Soda IDR 3,000)

glico-wings-waku-waku — From Ezaki Glico press release.

JCone for teenagers (2 variants including Pari Pari Vanilla)

Frosbite for young adults (5 variants including Vanilla Green Bean)

Haku for adults (4 variants including Monaka Vanilla IDR 12,000 and Matcha)

Leverage the strength of Wings in distribution

The FMCG giant Wings will focus on distributing the new ice cream throughout the country. Distribution is a key issue facing FMCG players in Indonesia and having the right local partner is important to reach consumers.

Since 7 November 2016, the ice cream has been made available in Java and Sumatra, the two most populous islands. The next step is to provide dedicated freezers and put them in the modern and traditional sales channels.

Sweeter taste

The ice cream will have a sweetener taste than Japan as Indonesian consumers prefer ice cream that is sweet in taste, said Hidezaku Kawashima, Glico Wings president director. The key unique selling points for Glico Wings is the ice creams come in different taste, texture and packaging.

Positive view of Japan

Indonesians view Japan favorably. The J-trend is much alive in Indonesia with strong preference for cosplay and Japanese pop culture like the female pop band AKB48 and its local group JKT48. This positive sentiment towards Japan has made Indonesia a fertile ground for Japanese food and beverages. The new Glico Wings ice cream will also be leveragingits Japanese heritage but with the taste customised for the local market.

#redballinvasion

The Japanese element is already strong when it comes to tne marketing of Glico Wings. #redballinvasion is the official hashtag to promote the new ice cream. The red ball (from the Japanese flag) symbolises Japan and consumers are encouraged to use this hashtag when uploading their photos.

Lay’s Smile Campaign goes viral across Asia

By

Tan Heng Hong

-

17th November 2016

Lay’s Smile originated from Thailand has become a marketing campaign that can be replicated elsewhere. The campaign turns the Lay’s pack into a smiley face to spread the joy to consumers in Thailand, Pakistan, China and now in Indonesia.

Originated in Thailand

Pepsi-Cola (Thai) Trading Company first started the “Lay’s Smile” campaign at the end of 2015 to celebrate its 20th anniversary. The key objective is to invite “Thais to smile with the deliciousness of Lay’s”. The campaign features 27 different designs.

Spreading to China with monkey masks for Chinese New Year

In China, the Lay’s Smile campaign was adapted for the 2016 Lunar New Year, which is the year of the monkey.

On the official PepsiCo China’s Tmall store, consumers can even customise their own smiley face.

PepsiCo goes one step ahead with a limited-edition packaging featuring half of the face of local actor and singer Kris Wu (吴亦凡) who is also the endorser of Lay’s in China.

Also available are different smiley cartoon designs targeting millennials.

Pass a Smile in Pakistan

In Pakistan, the campaign is known as “Pass a Smile” with the key purpose of giving a positive vibe to the nation to celebrate as one smiling nation. The 50 Days of Summer Smiles saw PepsiCo giving out 1 lakh daily starting 5 July 2016 for the next 50 days.

Let’s smile Indonesia

A similar campaign is being held in Indonesia at the moment where IDR 1 million is to be won daily from 14 November 2016 to 21 February 2017.

Jimmie Nugraha is one of the winners (image above).

Lay’s Smile has spawned look alike

In Indonesia, OT Group’s Oops brand has come out with something similar for its snacks in the form of a limited edition pack (image above).

The Lay’s Smile campaign brings out the light-hearted fun in you. It appeals across all ages and nationalities. The campaign leverages on the pack like what PepsiCo and Coca-Cola have done with beverages and delivers something novel for the snack category.

belVita activation on Transjakarta BRT bus network

By

Tan Heng Hong

-

17th November 2016

belvita-transjakarta-1 — At Transjakarta Monumen Nasional station - Blok M- Kota route. Image by Mini Me Insights

Here is an example of Mondelez’s belVita breakfast biscuit activation campaign in the Indonesian capital city Jakarta in early November 2016. The purpose of the campaign is to reach out to busy morning Transjakarta commuters and to strengthen belVita as a biscuit for on-to-go snacking.

Transjakarta transports 340,000 commuters daily

Transjakarta, operational since 2004, is the major bus rapid transit (BRT) system in Jakarta. The daily ridership on the Transjakarta network is around 340,000 commuters, according to PT Transjakarta director Budi Kaliwono. This translates into 55 million passengers for the first half of 2016.

Transportation Statistics of DKI Jakarta, 2015

The top route is Blok M to Kota, accounting for 22.1% of total passengers in 2014. The number of passengers from 2011 to 2014 has maintained at around 111 million per year.

belVita targets Transjakarta morning commuters

Apart from the lady giving out belVita, there is also an individual in the belVita box acts as a vending machine dispensing belVita when you hit ‘Toss.’ The sample belVita biscuits says “thank you for being a loyal customer of Transjakarta”.

Mini Me Insights

Bangladesh’s Pran to open door into Indonesia, new products for Malaysia

Calbee Wings introduces snacks for millennials and Generation Z

Unsweetened Ito En Oi Ocha debuts in Indonesia, Malaysia

Klip Klip – Frisian Flag sweetened condensed milk packaging innovation

Different demographic focus for FrieslandCampina coconut flavoured UHT milk

Sunquick unveils new RTD juice for children (Update)

Cowa extends into virgin coconut oil (VCO)

Glico ice cream launched in Indonesia

Lay’s Smile Campaign goes viral across Asia

belVita activation on Transjakarta BRT bus network

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