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F&N unleashes Ranger energy drink

The first impression is wow! The packaging design of the new energy drink from F&N is outstanding. Ranger is a continuation of F&N’s move to tap into the resources of its new parent ThaiBev to fill its gap in the Malaysian soft drink portfolio. Ranger is an energy drink under the ThaiBev stable. So far, three ThaiBev soft drink brands have been introduced in Malaysia – Oishi RTD tea, Est carbonated soft drink and now, the Ranger energy drink.

Thai version – From ThaiBev website

Ranger is also a long-time making for F&N after it loses its five-year exclusive distribution rights on Red Bull on 31 March 2015.

The Ranger currently sold in Malaysia is made in Thailand and comes in a 250ml can format. Ranger is priced at RM3.20 at Petron Treat convenience store, slightly cheaper than a similar 250ml Red Bull, which is selling at RM3.40.

Based on the store check in one of the Shell petrol station convenience stores in KL, the RM3.20 Ranger is priced between Red Bull and Power Root. At the moment, Ranger is still not available at 7-11 and only available at selected petrol stations, supermarkets/hypermarkets and other retail establishments.

Ranger placed next to Red Bull at Petron
Ranger at Aeon Big hypermarket – RM 2.55 per can

Birch and Maple water: new alternative to coconut water; opportunity in China?

Plant-based beverages such as birch and maple water were strongly featured at the Speciality & Fine Food Fair 2015 in London Olympia on 6-8 September 2015. These birch water is essentially ‘lower sugar’ alternative to coconut water with a taste similar to ordinary water.

TreeVitalise birch water comes in three flavours – original, mint and lemon. TreeVitalise explains the benefits of birch water:

“Birch sap is a traditional drink in many parts of Eastern and Northern Europe and Russia, where it has been tapped and enjoyed for centuries as a good-for-you and pleasanly refreshing drink. In the old days it would have been the first nutrient-rich  nourishment available to the locals from nature itself after a harsh and long winter.

It was known to stimulate the body’s purifying and cleansing systems as in its raw form the sap contains vitamins, enzymes, antioxidants, trace minerals, escpecially manganese, and also micronutrients unique to the birch tree, which were said to help strengthen the immune system, lower cholesterol and assist with weight loss.” Link

Sibberi birch sap water, photo taken at Speciality & Fine Food Fair 2015

The UK birch tree sap brand Sibberi taps trees in Latvia, Ukraine and Belarus. The company has recently penetrated Hong Kong, a market often serves as the test bed for new products and a gateway to China. See its HK Facebook site: https://www.facebook.com/sibberihk

Marketing blitz against coconut water.

Amazing Forest Limited/Mexpi Limited is another birch sap water exhibitor and the organic birch water comes from Belarus.

Mexpi Ltd booth, photo taken at Speciality & Fine Food Fair 2015

Coconut water is already in China. The question is will birch water make it big in China? At the moment, birch sap water can be bought in the country and is sold under the name 桦树汁 but it is still relatively unknown.

桦树汁

A search on the Internet reveals there is a birch water project in Tongjiang (同江) in northeast China’s Heilongjiang province seeking investment. Tongjiang is located on the right banks of the Songhua and Amur Rivers bordering Russia. The total investment is CNY65 million (USD 10 million) and the estimated annual turnover is CNY16.5 million. The annual output capacity is 30,000 tons of birch water. There are about 20.7 million hectares or birch trees in Tongjiang.

Heilongjiang-based Yichun Jinqiu Natural Beverage Co., Ltd. (伊春锦秋天然饮品有限责任公司) is one of the companies in Heilongjiang province that produces birch water. I did not come across birch water when I was in Harbin.

Yichun Birch Water – 天然桦树汁

Another birch tree producer is Jinlin Hanlao Ji Food Co., Ltd. (吉林市憨佬吉食品有限公司)  and its product is the lychee birch tree drink.

Lychee birch tree drink

As for the imported birch tree water, Finland’s Nordic Koivu is available on sale on CCTVmall.com. The price for a 500ml bottle is CNY333 (USD 52) !

Available on CCTVmall.com
Orignal imported from Finland – CNY333 per 500ml bottle
As birch water is usually made by small companies in China, unless the big local beverage players start to invest in birch water, it will be hard to popularise the drink. The problem is also compounded by the fact that the taste of birch water is quite similar to water and the authenticity cannot be verified with the tongue alone. However, opportunities do exist for Western companies who can market this as an exotic upmarket health beneficial drink but do keep the price below the CNY333 per bottle mark to make it more affordable. Birch tree water can be positioned as the ultra premium water with prices higher than imported premium water or local high-end water.

Taking the Pea positioning pea as alternative to crisps

Saw a very familiar product at the Specialty & Fine Food Fair 2015 (6-8 September 2015) in London Olympia. That product is none other than the humble pea. Pea is an all too common snack in Asian markets. But in the UK, apparently, pea is a newcomer and is positioned as a healthier snack to crisps. It is a source of protein and high in fibre.

From Taking The Pea website

The four key flavours under the Taking the Pea line are smoked ham, wacky wasabi, sweet chilli salsa and cheesy peasy and onion. All the flavours, with the exception of wasabi, can be found in crisps. The only thing, which is obviously missing is original flavour – salted green pea.

Four flavours – from Taking the Pea website

The colour of the pea is pale brown, a clear sign that it has not been added with colouring. Notice the colour difference between Taking the Pea and the made-in-Malaysia green pea. It is really bright green for the Malaysian green pea. For exporters from Malaysia looking to penetrate the UK market, your bright colour green pea will put you in the same league as junk food.

Photo taken at Taking the Pea booth at Specialty & Fine Food Fair 2015.
Made-in-Malaysia fried green peas

Category blurring for honey with chili sensation

Nuts4honey Organic Honey with Chilli

Category blurring is working well for honey. At the recently concluded Specialty & Fine Food Fair 2015 (6-8 September 2015) in London Olympia, Nuts4Honey Organic Honey With a Twist range from the UK-based Nuts 4 Honey Ltd caught my eye. In the range are honey with cinnamon, vanilla, cocoa, orange, ginger, hazelnut,  lemon and chili.

Honey with Chili is the most interesting. It has a sweet base but a stingy chili taste and is ideal for cooking. The product serves as a substitute for chili sauce.

Photo taken at the Nuts 4 Honey booth at Specialty & Fine Food Fair 2015

A similar product is found in Australia. Ogilvie & Co., the maker of gourmet food has a range of honey with chili, ginger, mango, vanilla, spice orange and roasted hazelnut. Basically, the idea is the same.

Photo from Justintimegourmet.com.au

Can honey be added into chocolate spread? The answer is yes. Poland’s Huzar has introduced the Huzar Hobee Cocoa Honey Cream, which serves as a bridge between honey and chocolate-based sweet spread.

Huzar Hobee Cocoa Honey Cream – Photo from Tesco Poland

In a sector full of suspicion where your honey can sometimes be something else, the honey category can move away from focusing solely on authenticity. Category blurring can hopefully bring new enjoyment to the honey category.

Halal-certified Kit Kat Green Tea now made in Malaysia

From Kit Kat Malaysia Facebook site

The Japanese-inspired Kit Kat Green Tea used to be highly expensive and a novelty. It is usually come as gifts from friends or relatives visiting Japan or available at the Japanese food section in premium grocers. Now, thanks to the high demand  for Kit Kat Green Tea, Nestle has started producing it locally at its halal-certified Chembong plant in Malaysia. The made-in-Malaysia, halal-certified Kit Kat Green Tea was officially launched on 12 September 2015. Malaysian consumers can now consume Kit Kat Green Tea without worries since it has been certified halal. 

Photo taken at Jaya One Cold Storage

The Kit Kat Green Tea is being extended into the ice cream category. This shows the ease in which innovation in the chocolate category can be adapted for the ice cream sector. 


Ringgit weakness impacting cheese price in Malaysia ?

Compiled from Malaysia External Trade Statistics Online (METS Online) – cheese import by country of origin (% breakdown by value in ringgit Malaysia)

As the ringgit plunges against all other major currencies due to both internal and external factor, let’s look at its impact on the cheese category. Based on the analysis of METS Online data, at least 75% of Malaysia’s cheese import in ringgit Malaysia term comes from Australia and New Zealand. The currency appreciation is still manageable since both the Australian and NZ dollar are impacted by the slowdown in China’s demand for commodities. Therefore, the recent weakness in the ringgit will not have a big impact on the prices of cheese in Malaysia with the exception of the remaining one-third dominated by imports from Europe and North America.

Additional information: 
Processed cheese and other cheese are the dominant categories, accounting for 89.1% of import value in ringgit Malaysia in 2014. Grated and powdered cheese took 5.7%, fresh cheese and curb 5.1% and blue-veined cheese 0%, according to METS online data.

Growth hormone-free Lactobacillus chicken spotted in Malaysia

We have heard of chicken roam about while listening to Mozart. We also know the best Malaysia-bred chicken as well as pork and other food produce are always exported to Singapore where the quality standard is significantly higher than Malaysia. Now, Kee Song Group, Singapore’s second largest poultry company, has made available the premium Lacto Chicken in Malaysia.

Kee Song Lacto Chicken at Aeon Cheras Selatan, Malaysia

The chicken is free from the dreaded growth hormones and antibiotics. It is fed with lactobacillus resulting in the chicken having less fat and cholesterol compared to normal chicken.

As Malaysian consumers become more aware of their food choices especially growth hormones, opportunities exist for food companies to start focusing on improving their current best practices to move into the free-from food space.

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.

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