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McDonald’s Malaysia grew 15% in sales in 2021, targets double-digit growth in 2022

Dato' Azmir Jaafar. Managing Director and Local Operating Partner, McDonald's Malaysia

McDonald’s Malaysia, which is operating under Gerbang Alaf Restaurants Sdn Bhd, revealed several interesting key figures during its media briefing on 2 March 2022. As one of the country’s leading fast food chains, McDonald’s returned to growth in 2021 with a 15% year-on-year increase in revenue to RM 2.35 billion, a reverse from a 4% year-on-year decline in 2020. The company grew 11% year-on-year before the pandemic in 2019. The target for 2022 is double-digit growth.

At the briefing, McDonald’s revealed it operated 318 outlets throughout Malaysia and employed more than 15,000 Malaysians, serving 13.5 million customers a month. The fast food operator opened 33 new outlets in the past 2 years with plans to add 35 new drive-thru restaurants in 2022. The vision for 2026 is to open up to 500 stores with a total investment of RM 1.35 billion, including 155 restaurant remodeling. The expansion means there will be 50,000 jobs by 2026. The QSR chain will move into more tier 2 and tier 3 cities including expanding in Sabah and Sarawak.

McDonald’s is the number one drive-thru service provider with 214 drive-thru stores nationwide, with 67% of stores in the drive-thru format.

The fast food chain is also the number 1 espresso coffee brand for QSR with a 23.5% market share. It is also the number 1 delivery service for a single brand with a 35% market share. Over 9 million McD App have been dowloaded since 2018.

Despite the growth in delivery and drive-thru, McDonald’s is also encouraging more consumers to dine-in by enticing them with strong data connectivity and offering a cleaned environment and a safe place to meet.

McDonald’s increased its prices in February 2022 by an average of 2%.

When it comes to plant-based offering, McDonald’s will continue to wait for the direction globally and will only launch plant-based once it feels plant-based is viable for Malaysian consumers. Dato’ Azmir Jaafar said there is no timeline when it comes to bringing in plant-based option into Malaysia.

Make your own with Ah Huat Black Sugar Milk Tea

Power Root (M) has released Ah Huat Black Sugar Milk Tea, which allows the consumers to DIY their black sugar milk tea at home to satisfy their sugar cravings.

Ah Huat Black Sugar Milk Tea is made from premium quality of dark muscovado sugar for healthy, silky-smooth delight and well as Kenyan Black Tea for a robust and fragrant finishing in every cup. The drink is said to offer unique aroma and mouthfeel plus contain abundant nutrients including anti-oxidant, L-theanine, manganese, magnesium, iron, potassium, calcium and vitamin B6.

Click here to buy on Lazada now.

New Magic Farm Fresh Cannabis Water to quench thirst and relax

Thailand’s Srinanaporn Marketing Public Company Limited (SNNP) has launched Magic Farm Fresh Juice with Cannabis containing organic cannabis leaves. The FDA-approved juice drink (250ml) comes in three flavours – Mixed Berry, Lychee and Pineapple. The company launches the drink in time for the summer season to help consumers relax and quench their thirst.

Lotus Chicken Skin Snack is now available

Thailand’s Srinanaporn Marketing Public Company Limited (SNNP) has introduced new chicken skin snacks under the Lotus brand. The Lotus Chicken Skin Snack is available in tom yum, original and sweet chili sauce.

It is available at 7-11 and general stores for only THB 30. The TVC hows how the latest Lotus Chicken Skin Snack is suitable for young consumers who are engaged outdoor camping, which has become a trend during the pandemic.

Chill the Munchy’s LEXUS Chocolate Chip Cookie for maximum indulgence

Munchy’s, which is now owned by URC, has launched LEXUS Chocolate Chip Cookie topped with chocolatey drizzle. The new chocolate chip cookie is available in 3 delectable variants – Original, Dark Chocolate & Mixed Nuts.

Consumers can enjoy it warm and melty or try eating it chilled for maximum indulgence. We are seeing Munchy’s focusing on temperature and texture to promote its biscuits. Other possibilities include microwaving the biscuit or having special ingredients that change colours along with a change in the temperature.

Click here to buy it now from Munchy’s online store on Shopee now.

Enjoy Lot 100 Fruit Gummy Dates after a long day of fasting

Cocoaland, know for its Lot 100 gummies, has introduced Lot 100 Fruit Gummy Dates in time for the Ramadan season. The sugar confectionery company is the latest to use dates or kurma to make its gummy relevant for the fasting month of Ramadan.

The company descibes its latest Lot 100 Fruit Gummy Dates as “you can enjoy it in anytime anywhere to boost up energy and blood glucose level especially after a long day of fasting.”

Click here to purchase from Cocoaland flagship store on Lazada.

Cocoaland revenue for the 12 months to December 2021 fell 2.8% year-on-year with net profit up 7.1%. Q4, 2021 revenue rose 24.2% with net profit up 98%.

Betagen Kombucha is a wake up call for kombucha players in Malaysia

Betagen has made available its latest kombucha through Malaysia’s FamilyMart convenience stores. We feel the latest Betagen Kombucha Fermented Tea Original is set to disrupt the kombucha segment as it wins on two areas –  affordability and taste. The 200ml drink is priced at RM 4.70, which is a low entry price for kombucha in the Malaysian market.

For serious kombucha drinkers who have tasted Betagen Kombucha, they would notice Betagen Kombucha has a more pleasant taste but lack the authenticity. Taste is a barrier for kombucha right now as kombucha traditionally comes with a tangy, acidic taste. By making it easier to drink, Betagen Kombucha has the potential to make kombucha more accessible to ordinary consumers in terms of the taste.

However, for established kombucha players, there is the risk that Betagen Kombucha’s presence will mislead first time kombucha drinkers who might think that all kombucha in the market will taste just like Betagen Kombucha.

Globally, kombucha is trying to exapand its user base and that is why kombucha players have entered into the carbonated space as well as turning kombucha into a beverage ingredient. There is also the push to make kombucha more pleasant to drink among children. In Australia, Remedy has launched Remedy JNR, which is described as a super-tasty, lightly fizzy kombucha brew made just for kids.

Perhaps it is a wake up call for kombucha companies in Malaysia to look at new ways to popularise digestive drink with kombucha as the core ingredient.

Singha offers Doraemon drinking water to stimulate summer sales

Boon Rawd, which makes the Singha drinking water, is turning to Doraemon to promote its drinking water during the hot summer season. The collaboration highlights the theme of “Our Friendship Is Magic.” The Doraemon labelled bottled water is designed to appeal to consumers from all ages. The campaign also comes with prizes to be won.

In the past, Singha drinking water has colloborated with cartoon characters like My Little Ponny and Mickey Mouse to stimulate sales of its drinking water.

New plant-based Nesvita Cereal Drink is high in fibre and contains goji berry

Nestlé (Thai) has launched a plant-based cereal drink in UHT format that is said to be easy to drink, delicious and satisfying. The new Nesvita Cereal Drink contains whole grains and is high in fibre and vitamin C. high fiber, high vitamin C. Nesvita Cereal Drink is available in 2 flavors, Original and Goji Berry. Nesvita Cereal Drink is priced at THB 14 and is available at 7-Eleven.

https://www.youtube.com/watch?v=nZx-UVs22V0

The new Nesvita Cereal Drink taps into convenience and also the current consumer fascination with plant-based food and drinks. On-the-go format will return in demand as society opens up following the easing of pandemic restriction.

 

Fast food chain A&W leaving Thailand on 20 March 2022

Global Consumer Plc (Glocon) is shutting down its A&W outlets in Thailand as a result of losses and the impact of the COVID-19 pandemic. All 24 A&W restaurants in the country, mainly in shopping malls and petrol stations, will cease operation on 20 March 2022. A&W first entered Thailand with the opening of its first store in 1983.

A&W has adapted during the pandemic by launching food truck and even selling waffles in 7-Eleven. Despite the various initiatives to turnaround the business, the fast food chain continues to suffer from deepening losses in 2021.

Based on the accounts of NPP Food Incorporation, the operator of A&W fast food restaurants, revenue from sales is already in a decline, down 20% year-on-year in 2018, down 21% in 2019 and down 35% in 2020.

Meanwhile, competitors including new entrants like Taco Bell are marching on with store expansion during this period.

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