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Inflight menu provides brand visibility for new products

Airline’s inflight menu can be a good way to introduce consumers to the latest F&B offerings.
I was on an AirAsia X flight to South Korea’s second largest city Busan in March 2015. The inflight menu not only had the usual F&B but also the latest products such as Calpis Cultured Milk Drink Mango Flavour and Uncle Saba’s Poppadom.
 

However,  passengers would normally go for something that they are more familiar with such as a an of Coke or a Maggi instant noodle as the cost of trying something new can be quite expensive on the plane. But products featuring on the inflight menu does improve brand visibility. Some passengers have nothing to do but browsing the inflight magazines and inflight menu to look for something interesting during the long flight. If the product is interesting enough, it would have an imprint on their mind and perhaps prompt them to make the purchase while shopping in the grocery store.

Nestle strenghtens non-bitter coffee range with coconut flavour, first in Malaysia

With coconut trending in F&B application, it is no surprise to see coconut starting to appear as a flavour in the world of instant coffee. The Nescafe Latte Coconut 3-in-1 instant coffee comes with the aromatic coffee flavour. It claims not to have the bitter taste often associated with coffee – ‘rich taste no bitterness.’

Also launched is Nescafe Latte Mocha featuring the double chocolicious flavour. The regular price is RM 12.50 with a promotional price of RM 9.99 for a 15x30g pack containing 15 sticks.

Rich Taste no Bitterness

Nescafe earlier introduced Nescafe Latte Caramel promising consumers the coffee does not have the harsh and bitter taste. Now, Nestle has strengthened the non-bitter coffee portfolio to include Latte Mocha and Latte Coconut to help it to recruit more younger consumers and non-coffee drinkers. As coffee consumption changes to becoming a lifestyle drink, the non-bitter range will enable Nescafe to reach out to the new demographics who will in turn drive coffee consumption in the future.

Nestle non-bitter coffee range

Coconut milk faces new challenge as dairy firms promote the health benefit of coconut milk alternatives

Dairy companies are driving the message that their products are not only to be consumed directly but also good for making your dish tastier.

Fernleaf milk powder

Fonterra’s Fernleaf milk powder has introduced several recipe ideas that goes well with Fernleaf milk powder. The Recipe Collection (Koleksi Resipi) is in Malay and Tamil as dairy-based dishes are more commonly found in Malay and Indian meals.

The recipes comprise Mutton Korma, Mollee Fish, Bread Pudding and Prawn and Green Mango Curry. In all four recipes, Fernleaf milk powder is used to add the milky taste.

hrimp and Green Mango Curry

Nestle Yoghurt

Nestle has been promoting its plain yoghurt as a healthier alternative to coconut milk. The key message is Nestle Yoghurt is low in fat, has calcium and is not added with sugar.

Different flavours with Nestle Yoghurt

On the Nestle Natural Yoghurt, the company claims its plain yoghurt only has 1.6g of fat compared with 28.3g of coconut milk per 100g serving. The message is to tell consumers to switch from coconut milk (santan) to a healthier yoghurt that is low in fat.

Nestle Yogurt claims to have has 1.6g of fat compared with 28.3g in coconut milk per 100g serving. Image taken on 10 April 2016.

Coconut milk, which is widely used in Malaysian cooking, will come under increase competition from dairy. This comes as dairy companies are promoting milk powder and yogurt as healthier substitute for coconut milk to drive consumption and usage amid the shift towards healthy eating.

New Tablelands Coconut Spread

Malaysians are rediscovering coconut oil. Extra virgin coconut oil is touted as the next big thing in health. Lucky Frozen Sdn Bhd has recently introduced Tablelands Coconut Spread from Australia. This product is not exclusively made up of coconut oil but 31% coconut oil, water, canola oil and vegetable oil. The promotional price is RM 7.69 per 500g at Aeon, Mid Valley.

Summerfield fresh milk adopts clean design, emphasises eco-friendly bottle cleaning process

Summerfield, a new range of lightly pasteurised milk, has hit the shelves of leading supermarket/hypermarket chains in Malaysia. The fresh contemporary clean design evokes the brand’s ‘pure & fresh’ image.
Here is a close up view:
Range
The Summerfield range comprises the following products in 500ml, 1L and 2L.
– Full Cream 100% Fresh Milk (yellow)
– Low Fat 100% Fresh Milk (light green)
– Classic Chocolate Milk Since 1957 (brown)
  
The range is easily identified by the colour scheme with light green representing low fat, yellow full cream and brown chocolate.
 
Eco-Friendly Bottle Cleaning Process 
The striking point about the new product is that it uses the eco-friendly bottle cleaning process. Hybrid Allied Dairy Company Sdn Bhd, the company behind the Summerfield Milk, claims to use “ozone water technology to sterilise its bottle without using chemicals.”
Are consumers concerned about the cleanliness of the bottle or are they already assumed all the bottles are already cleaned regardless of the cleaning process?
Background in Supplying Milk to Schools
Hybrid Allied Dairy was given a concession by the Malaysian government to supply UHT milk to schools in the northern states of Perlis, Kedah, Penang and Perak under the 1Malaysia School Milk Program (PS1M) since 2011. The PS1M program includes Hybrid Allied, South Korea’s Namyang Dairy Products Co., Ltd. and Tetra Pak International S.A.

The factory is located in Kluang in the southern state of Johor, which is next to Singapore.

The launch of Summerfield Milk seen as a move by the company to diversify its revenue to include end-consumers in the retail channel.

Provenance

The message of supporting local milk is very strong. The company is aided by the government as part of the move to increase the country’s self sufficiency milk.

Summerfield Milk scores high in calcium

Summerfield Milk scores pretty good in terms of nutritional value. In fact, its nearest competitor is Farm Fresh from The Holstein Milk Company Sdn Bhd. The fresh milk from both companies have low energy and carbohydrate levels but high in calcium. In fact, it has the highest calcium compared with other locally-produced fresh milk at 114mg per serving.

Affordably priced

As a new entrant, Summerfield Milk is competitively priced with affordable price being its USP to compete with other established brands in the market.

Strong NPDs in fresh milk

It is truly refreshing to see a new brand in the fresh milk segment. The appearance of an increasing number of locally made fresh milk brands such as Summerfield, Happy Farm and Country Fresh also shows the growing dairy farming industry in the country. The choice of fresh milk, compared with UHT, does indicate consumers are upgrading to fresher milk and the cold chain is supporting this growth.

Dutch Lady Pure Farm goes for TetraPak HeliCap closure for one-step easy opening

Dutch Lady Pure Farm now comes with a more secured closure. The 23mm TetraPak HeliCap closure offers one-step opening and good security features. The cutter-based system works by cutting through the pre-laminated hole when the closure spiral downwards. There is no need to remove the pull tab when the closure is opened.

Images from Dutch Lady Malaysia Facebook page

Dutch Lady is the early adopter of the HeliCap closure. Marigold, Goodday and Nestle are still using the resealable ReCap.

Nestle (Malaysia) gaining market share in depressed environment, innovations driving growth

Nestle (Malaysia) Berhad Managing Director Alois Hofbauer gave a talk at The Star’s PowerTalk in February 2016. Below are some interesting facts from the session.

The revenue contribution from innovations and renovations is growing as a proportion of domestic sales, reaching 9.5% in 2015 from a mere 4% in 2013. This shows the innovation and renovations is a key growth driver.

The company has to innovate more to capture the growing share of the F&B market given the subdued consumer sentiment  According to Nestle citing Nielsen audit data, the Swiss F&B giant has captured a growing share of the local F&B market. Assuming the market share covers only segments Nestle are operating in excluding categories like bottled water, carbonated soft drinks etc, we now know how big is the F&B universe Nestle is active in. The caveat is the we assume everything is sold in retail and value should be higher sinceNestle (M) domestic revenue is calculated at ex-factory price, not at retail price. But it does give you a sense where the market is heading.

Poor consumer confidence due to depressed oil prices, the removal of more subsidies and the 6% GST have impacted consumer spending in 2015 with F&B sales down by around 8% in 2015. This compared with a positive 3% growth in 2014. The market share gain was made in an environment where overall sales were failing, which shows Nestle is coping well with the challenges.

Also mentioned by Alois during the talk was the growth in petromart and convenience store. [This blog will be focusing more on covering stories about these two distribution channels going forward.] The company is working to innovate to produce more convenient and portable products such as Milo Nutri G to target on-the-go consumption occasions. F&N was seen already doing product sampling for its new Ranger energy drink at the Petron petrol station last week. Petromart is becoming an important retail channel as more time is being spent on the road.

One thing missing in the latest Nestle (M) 2016 analysts briefing is the absence of revenue breakdown by category. Do hope Nestle will bring it back this year.

Prochiz makes its way to Malaysia, a look at cheese & curd imports

I mentioned in my earlier posts on how Indonesian dairy companies are exporting cheese, yoghurt and fresh milk abroad to countries like Singapore, the Philippines, Malaysia and Hong Kong. I recently spotted PT Mulia Boga Raya’s Prochiz  at Hero Supermarket, Malaysia imported and distributed by Puchong-based Premium J Enterprise. Hero Supermarket has become a hub for Indonesian products and therefore making it a good distribution channel for the new sliced cheese from Indonesia.

Prochiz is the cheapest slice cheese in town. Interestingly, the price is the same, albeit with a new flavour (Prochiz Sliced Strawberry – 10 slices), at the Indonesian minimartket chain Alfamart with a selling price of IDR 15,700 (RM 4.90).

Malaysia cheese and curb imports – Indonesia saw a big jump

Indonesia’s share of cheese and curb export to Malaysia is very small at 0.2% of total export value in 2015 but represented a big increase over the past two years. I believe the huge increase in export is attributed to higher export of Greenfields cheese.

New Zealand became the top exporter in 2015, toppling Australia. However, both countries remain the biggest cheese and curb exporters, grabbing a combined share of 76.1%.

It would be interesting to see if Prochiz latest product strawberry flavour will make it to Malaysia.

Asahi strengthens offering with fizzy indulgence – Tropicana Frutz

Permanis Sdn Bhd, the official bottler of PepsiCo and a unit of Asahi Group, has just launched Tropicana Frutz, a new range of sparkling juice made from real apple and orange juice. Tropicana Frutz was previously launched in the Philippines in August 2015 and before that in Vietnam in July 2014. The refreshing sparkling juice drink was developed to offer consumers with on-the-go convenience.

7-Eleven Philippines announcing the availability of Tropicana Frutz in August 2015

A look at the key launches made over the past two years shows Malaysia’s Permanis Sdn Bhd, a unit of Japan’s Asahi Group Holdings, is focusing on growing the non-CSD segments such as Wonda coffee and Tropicana juice. In fact, Pepsi only contributed less than 15% of revenue, while between 10% to 20% respectively came from Revive, Mirinda, Tropicana Twister and Mountain Dew, according to The Star article dated November 2013.

In the CSD category, Mountain Dew is the only CSD brand that is getting more marketing dollar. The brand has been successfully positioned as a youth-focused CSD concentrating on gaming, music and sport. Mountain Dew is growing double-digit every year.

Permanis has big ambition in the fresh milk segment. The Good Day fresh milk brand from the latest purchase of Etika Dairies was given a new look and a virtual brand ambassador Dee Dee the Cow.

Dee Dee the Cow and Good Day Bone Density Scan Campaign

Tropicana Frutz is seen as a move to tap into the permissible indulgence space with the best of both words – fizzy taste and real fruit juice.

Asahi Group Holdings Southeast Asia revenue growing at strong double digit

Asahi Group saw strong growth as a result of M&As in Southeast Asia (2011: Permanis; 2014: Etika Dairies) and the successful introduction of Wonda coffee and Mountain Dew in Malaysia. The joint venture in Indonesia with local Indofood CBP Sukses Makmur has laid a strong growth foundation for Asahi in the non-alcoholic beverage category. Ichi Ocha RTD tea was the new product of PT Asahi Indofood Beverage Makmur, introduced in December 2013. Asahi Indofood opened a new plant in Sukabumi in 2015 producing Ichi Ocha and bottled coffee Cafela (launched in mid-2014). The capacity of the new plant is 100 million litres per year.

Non-CSD such as RTD tea and RTD coffee will provide the necessary engine to fuel Asahi’s growth in Southeast Asia going forward. However, Indonesia continues to underperform due to strong competition in the RTD tea space, which means more work has to be done there.

Roadside coffee shops emerging as new foodservice trend

The Boss Coffee at Seri Kembangan, Selangor

Changing out of home coffee scene

The OOH (out of home) coffee drinking scene is changing with the new channel –  mobile roadside stall. The stalls are conveniently located on the roadside providing hot and cold beverages for both motorists and passer-by on the go.

They are easy to set up. All you need is a temporary stall, water (hot/cold) and ingredients (powder). You can now serve more upmarket drinks such as cappuccino, tiramisu, chocolate, mocha, latte, milo dinosaur, green tea and iced tea to consumers looking for a refreshment and a caffeine fix. These flavoured drinks are easy to prepare as the key ingredients are all in powder,
Coffee-Crazy at Ampang, Selangor

The appearance of such stalls illustrates how drink vendors are moving up the value chain, upgrading from soya bean drink, coconut water, syrup to serving something perceived to be more sophisticated and premium such as cappuccino and latte. The price per cup of cappuccino flavoured drink at Coffee-Crazy is RM 5, which is considered pricey for a stall but a price willing to be paid by consumers who want a quick made-on-the-spot refreshment that meet their aspirational lifestyle.

Eventually, some of this stalls will start a franchise empire of their own serving drinks made from secret recipe.We may be seeing more of these stalls in the future.

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