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Vending machines way forward, new Nestle Nescafe Alegria AVM

By
Tan Heng Hong
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Vending machines have become a hotspot at trade expos in Malaysia. There is only one word to describe the rise of vending machine and that is “cost.” Rising cost especially manpower has drove businesses to think of new ways to cut cost and what’s better way to reduce cost than with self-service machine. Add convenient payment (eg Touch ‘n Go) into the pot and you will get a machine that meets the lifestyle of current consumers.

A prime example is the UK-based Costa Coffee, which was launched in Malaysia exclusively in the form of self-served coffee machine in Shell petrol stations.

Nestle launches new Alegria auto vending machine

Nestle Professional showcased its newest Nescafe Alegria AVM (auto vending machine) at the recently concluded Food & Hotel Malaysia (FHM) 2017.

The drink dispenses hot/cold drinks from Nestle’s range of beverages including Nescafe coffee, Bonus soy milk, Milo and Nestea.

Another feature of the AVM is the acceptance of the Touch ‘n Go payment. However, Nestle is not the first to include the Touch ‘n Go function in vending machine.

Ventaserv first to debut vending machine accepting Touch ‘n Go

Competitor Ventaserv is the first to unveil the cashless vending machine in collaboration with Touch’ n Go Sdn Bhd and Coca Cola Refreshments (M) Sdn Bhd in July 2017.

According to the company, it hopes to increase the number of vending machines to 1,000 by the end of 2017, up from 500 at the moment. The currrent Ventraserv vending machines are loated in hospitals, recreational parks, shopping malls and schools in the Klang Valley.

First phase roll out of Nescafe Alegria on PLUS highways

Nescafe Alegria will be rolled out initially in the rest stops on PLUS highways.

Mini Me takeaway

There is a growing acceptance of self-service ranging from self-checking at the airport to making purchases on vending machines. For consumers, the most important things they would like to see in vending machines are payment convenience and interesting and relevant product range.

For businesses, unmanned vending machines help to lower cost and they can operate 24/7, which looks great on paper but ultimately location will be the most important factor for vending machine to become successful.

San Miguel goes for sustainability by dropping Purewater bottled water line

By
Tan Heng Hong
-

Food and beverage companies in Southeast Asia are increasingly taking their own initiative to become more environmental friendly or ethical in their production. Such measures were implemented even before major public outcry or government regulations.

San Miguel to stop Purewater bottled water line

One example is the Philippines conglomerate San Miguel Corp (SMC) announcing in September 2017 that it would discontinue its plastic bottled water line Purewater. This would effectively means the company is exiting the bottled water business, which comes under its San Miguel Brewery Inc unit.

Forgo bottled water to achieve long-term sustainability

SMC President and Chief Operating Officer Ramon Ang said “the plastic bottled water business has given us good returns, but we are choosing to forego it in favor of our long-term sustainability goals.”

Focusing on filtration technology

SMC is diverting its resources to higher value added filtration technology to be deployed during disasters to provide safe drinking water to affected households.

Plastic waste issue

Plastic waste is a major issue for the Philippines. According to a 2015 study by the Science Journal, the country is the world’s third biggest plastic waste producer with 1.88 million metric tons of mismanaged waste per year, reported CNN Philippines.

No material impact to SMC

The bottled water business is insignificant for SMC as Purewater is only a minor player in the industry.

Coca-Cola tees off for a good cause

By
Tan Heng Hong
-
L-R_Gareth McGeown and Finaswati Mohamed Zin from Coca-Cola hands over donation to the NGO representatives, Noraini Yaakob and Siti Hajar Ismail

Corporate and business partners, customers and suppliers rallied together for a good cause at the recent Coca-Cola Charity Golf Day. Held at the premier TPC Kuala Lumpur golf club, around 100 players participated in the full day event, which began with an 18-hole game and ended with dinner and entertainment.

Highlights of the dinner included a lucky draw session and the auction for a pair of return tickets to New York sponsored by Etihad Airlines that was eventually sold to the highest bidder, Rodney Wong Kai Heng the Chief Executive Officer of Munch World Marketing Sdn Bhd.

Organised by Coca-Cola Bottling Investment Group Malaysia-Singapore-Brunei, the charity event successfully raised RM100,000 which will benefit underprivileged children from Pertubuhan Baitul Mahabbah. Based near the Coca-Cola plant in Negeri Sembilan, the non-profit organisation provides a safe haven for financially disadvantaged children and orphans under the age of 12.

The funds raised will go towards the refurbishment and provision of basic facilities for the 3 hostels housing 40 young boys and girls.

“We are humbled and grateful by the support given by our partners, customers and suppliers who has made this charity event a success through their participation and generous sponsorships and donations. Together with them, Coca-Cola is able to extend a helping hand to those in need and hopefully make a small but positive impact to the lives of the children at Pertubuhan Baitul Mahabbah,” said Gareth McGeown, Chief Executive Officer of Coca-Cola’s Bottling Investment Group Malaysia-Singapore-Brunei.

The donation to Pertubuhan Baitul Mahabbah was presented by McGeown and Finaswani Mohamed Zin, Head of Public Affairs and Communications, Malaysia & Singapore, Coca-Cola Bottlers Malaysia to representatives from the NGO, Noraini bt Yaakob and Siti Hajar bt Ismail.

“Apart from today’s donation to Pertubuhan Baitul Mahabbah, Coca-Cola will continue to give back to the local community and give aid to those in need through our corporate CSR initiatives,” added McGeown.

Food Proteins Asia Meet in Bangkok Weighs Asia’s Rising Protein Intake & Its Prospects

By
Tan Heng Hong
-

CMT’s inaugural Food Proteins Asia, in Bangkok on 9-10 November highlights the opportunities presented as Asia develops a huge appetite for protein fortified food and drinks coupled with global shift towards plant based proteins such as soy, peas and pulses.

Food Proteins Asia 2017 seeks to unveil opportunities in Asia Pacific’s protein ingredient market, expected to grow at the fastest CAGR of 9.1% over the next few years. Day 1 begins with Frost & Sullivan sharing the ‘Global Food Protein Trends & Growth Opportunities in Asia’ – highlighting alternative proteins, sustainable food protein sources, technologies and the changing economics, food safety and health and wellness concerns.

Plant-based proteins will be a primary focus as DuPont Nutrition & Health presents topic on ‘Capturing the Protein Opportunity with Soy Protein: Market Fit, Applications and Advantages’, and Axiom Foods addresses ‘The Tipping Point for Plant’ – focusing on how people are moving away from meat in the USA.

Brand owner – Danone Nutricia Early Life Nutrition joins the summit with its perspective on the evolving protein diets in infant nutrition. As dairy remains a key protein source, Fonterra presents a session on – ‘Why Dairy? The benefits of dairy protein’. It is followed by ‘The irreplaceable value of whey protein in human nutrition’ by Pacific Dairy Ingredients.

Insect based protein – considered the next big thing – is slated to have two sessions – ‘Edible insects market’ featuring processing technologies and market opportunities for consumer packaged goods by Bugsolutely and Abundance Food Co. on ‘Fortifying energy bars with cricket protein’.

Organised by Centre for Management Technology (CMT), other key presentations are:

  • Power of pulses – Meijer Consult
  • Understanding the vital gluten market going forward – Commoditia
  • MycoProtein – Healthy new proteins with low environmental impact new market applications – Quorn Foods Monde Nissin
  • Commercializing Lentein in Asia & Formulating into food products – Parabel (formerly PetroAlgae)
  • Harnessing the Goodness of Pea Proteins and its Suitability in Asia – Roquette Management
  • Recent technological, commercial & regulatory development on new food protein ingredients in Asia – Keller & Heckman

Larsson will join the summit as exhibitor.

For more information visit Food Proteins Asia 2017 or call Ms. Huiyan Fu at +65 6346 9113.

11street enhances online grocery shopping experience

By
Tan Heng Hong
-

Mart 11 offers a 48-hour delivery with RM11 cashback for late service and it caters over thousands of products for consumer selection

KUALA LUMPUR, 25 September 2017 – Across the ASEAN region, the outlook for grocery shopping is looking bright as it is expected to become the world’s largest market worth almost US$180 billion by 2020. [1] To cater the rising demand for household and grocery items online, 11street launched Mart 11 today, its first campaign with a promise of 48-hour delivery within the Klang Valley as one of its new commitments towards enhancing the grocery shopping experience in Malaysia.

Chuljin Yoon, Chief Operating Officer of 11street said, “The digitalisation of grocery shopping is a crucial step in the e-commerce industry. The Mart 11 concept is a way to enhance shopping experience with specifically household and grocery items, making it much more convenient to shop from the comfort of your home. It features 10 renowned brands every month showcasing over 1000 daily food and beverage, baby essentials, and daily essentials.”

Tracing back to 11street’s Year End Outlook Survey last year, it is discovered that interest to purchase household and grocery items online will increase from 7.8% to 40.4% in 2017 – an estimated of 5 times increment from 2016. This also puts household and groceries items as one of the “Top 3 Categories Most People Are Likely to Explore in 2017”.

In relations, the sales figure of 11street Malaysia within the period of January to August 2017 reported a surge in the grocery sale category by 158%, in comparison to 2016 of the same period. The top 5 most purchased grocery products identified are chocolate malt powder, milk powder, diapers, soft drinks, and grains.

11street enhanced logistic support to provide greater value

The competition among e-retailers today goes beyond just pricing alone as the focus is also on convenience and fast delivery. The Mart 11 concept allows consumers to enjoy a 48-hour delivery service within the Klang Valley and RM 11 cashback for late service.

“As one of the leading e-commerce platform, it is our goal to fine tune customer experience by offering them the convenience of purchasing goods anywhere at any given time. The cashback serves as a seal of confidence in our logistic support to deliver the package within 48 hours,” added Yoon.

In addition to the promotions in Mart 11, customers can also enjoy additional 11% store cart coupon on top of the discounted products.

Mart 11 paving way for new market expansion

Malaysian online shopping behaviour has changed drastically over the year, from purchasing lifestyle, electronic and beauty products to now including fast moving consumer goods and groceries. The trend in fresh produce delivery has also become prevalent through the rise of many grocery delivery start-ups.

Yoon added, “Going beyond the ordinary, 11street is one of the first online marketplaces in Malaysia that can deliver frozen goods to your doorstep with just a click away. To do so, we have forged strong partnerships with brands such as Wall’s and Nestle to deliver ice-cream to selected areas or states in Malaysia.

“We foresee potential in the Malaysian market to advance forward in the grocery shopping revolution. With the establishment of Mart 11, we are confident that 11street will be the anchor for the online grocery shopping market in Malaysia, and to continue serving consumers a quality product variety with reliable logistics service at competitive rates,” concluded Yoon.

For more information on Mart 11 and its monthly promotions, please visit http://www.11street.my/benefit/promotionDetail.do?planDisplayNumber=592859.

About 11street (www.11street.my)

11street is a trustworthy and convenient online marketplace that offers a great variety of products at competitive prices. It strives to revolutionise today’s consumers’ online shopping experience by making it more personalised and engaging. 11street has a diverse selection of product categories which are tagged on Fashion, Electronics, Groceries, Health & Beauty, Kids & Baby, Leisure & Sports, Home & Living, and Books & Services including deal offerings like E-vouchers. 11street is also an optimised marketplace where its merchandising ecosystem, education and training programs can fully support sellers regardless of the size of their businesses. Established in Korea since 2008, 11street is now one of the top global e-commerce marketplace providers with 400,000 sellers serving over 30 million consumers worldwide. 11street also has a presence in Turkey and Thailand, known as n11 and 11street respectively. For more information, please visit http://www.11street.my.

[1] https://foodindustry.asia/selling-online-in-asia-four-emerging-online-grocery-models

Tofusan eyes ASEAN expansion via DKSH partnership

By
Tan Heng Hong
-

Tofusan eyes ASEAN expansion

Tofusan Co., Ltd., Thailand’s No.1 organic soymilk producer, said it has plans to export its soymilk into other Southeast Asian countries in 2018 through the DKSH network. This comes on the sideline of the official announcement of the distribution partnership between Tofusan (โทฟุซัง) and DKSH. Tofusan is famous for its soymilk with tofu sheet.

Partnership with DKSH

DKSH was appointed by Tofusan to handle marketing, sales, distribution and logistics services in Thailand. This includes the expansion of Tofusan products in modern trade, convenience stores, hotels, schools, restaurants, community retailers and food service channels.

Opening new factory in Samut Sakhon

Tofusan aims to open a new factory in Samut Sakhon, a city close to the Bangkok Metropolitan Area, reported Bangkok Post. The capacity of the new factory is 300,000 bottles of soymilk per day. It will add to the existing daily production capacity of 100,000 bottles a day.

UHT soy milk has the biggest segment

According to Tofusan, UHT soy milk was the biggest segment in the soy milk market in Thailand in 2014 with 84.31%, followed by sterilisation 13% and pasteurisation at 2.94%. Lactasoy is the market leader in UHT soy milk, while Tofusan is active in the pasteurised and sterilised soy milk segments.

The image below was taken from iizziistudio.com

Market leader

Tofusan debuted in the market in 2011 and by the end of July 2015, it had captured 54% of the market in the bottled soy milk segment. Ohayo and Shinpo was respectively second each with a 20% share and Fong Fong with the remaining 6%.

New product with 5 colours

The new Tofusan soy milk has beans of 5 colours including white bean, green bean, red bean and soy bean in konjac. The retail price of the 225ml drink is THB 15 and is only available at 7-Eleven. The calcium in the drink comes from white sesame.

What Mini Me thinks

UHT soymilk such as Lactasoy and Green Spot (Vitamilk) has found a ready market in Southeast Asia. Huge growth is seen in the Philippines for Vitamilk. The demand for pasteurised and sterilised premium soymilk is slowly picking up as consumers upgrade to better soymilk and this is where Tofusan can play a role.

Food Protein Asia 2017

To know more about Asia’s soaring demand for protein enriched foods and learn from Monde Nissin, Parabel, Meijer Consult, Axiom Foods, Fonterra Brands, Danone Nutricia and many more at Food Proteins Asia 2017 on 9-10 Nov Bangkok, Thailand.

Yourganic plant-based protein drink without the whey

By
Tan Heng Hong
-
Image from Yourganic

Yourganic, the Indonesian owned almond milk producer that is 100% produced with raw Californian almonds, has recently unveiled it latest plant-based protein drink No-Whey To Go in September 2017.

The beverage is a collaboration with “The Father” of Indonesian bodybuilding – Mr Ade Rai who famously featured in Sido Muncul’s Kuku Bima powdered energy drink.

The plant-based protein drink contains almond milk, spirulina and banana to help with muscle building and fat burning. Each bottle contains 20g of protein. The price is IDR 45,000 per bottle and can be purchased on Yourganic online store or at Crossfit, Rai Fitness and Kem Chicks.

The drink is free from gluten, sugar, GMO, artificial sweetener and animal protein (whey).

*Images from Yourganic

New Mitsui, ABC dairy farm, processing facility launched

By
Tan Heng Hong
-

A new dairy player will enter the Indonesian dairy market following the official opening of a dairy farm in Garut in West Java on 20 September 2017. An initial USD 50 million has been invested into the dairy farm operated by Raffles Pacific Harvest, of which 30% is invested by the Japanese trading house Mitsui & Co and the rest by local food producer ABC Group.

The farm has an initial 900 dairy cows, of which 400 are productive cows with the capacity to produce 12 tons per day. The plan is to increase the herd size to 4,000 in the coming years.

The raw milk will be supplied to PT ABC Kogen Dairy, which runs a milk processing plant in Cicalengka, Kabupaten Bandung. The plant has the processing capacity of 160 tons a day. The distance between Garut and Cicalengka is around 40km. Mitsui & Co also has a 30% stake in ABC Kogen Dairy.

According to Asia Nikkei Review, ABC Kogen Dairy will start selling milk and processed dairy products within the year.

What Mini Me thinks

As Indonesia is a net importer of dairy with 70% of its milk requirement coming from abroad, having a local source not only helps to reduce the dependency but also provides consumers with fresh milk straight from the farm. The entry of ABC into the milk market will also improve competition.

 

New So Tango with Belgian chocolate, against fake news

By
Tan Heng Hong
-

Tango, the leading wafer brand from Indonesia’s OT Group, officially unveiled So Tango in September 2017. This new wafer with Belgian chocolate adds to the existing lineup comprising Tango Waffle, Tango Fusion, Tango Crunchcake and Tango Kraffel. Tango was first introduced in the country in 1995 and is now contributing 20-30% towards OT Group’s revenue. According to the business daily Kontan citing Harianus I Zebua, Head of Corporate and Marketing Communications OT Group, Tango is number one in the wafer segment in Indonesia, .

Focusing on export

Charles Klamodarso, Managing Director Wafer Division OT Group, said the company has been focusing on exporting Tango in the past three years. He said the export market is “growing significantly” with focus on China and Vietnam. The company has exported Tango Waffle, Tango Fusion, Tango Crunchcake and Tango Kraffel. For the domestic market, Charles said the Tango brand is expected to grow by 10-15% in 2017.

OT booth at SIAL China 2017. Photographed by the author

Against fake news

As part of the launch of So Tango, OT Group has launched a public education campaign to support the government’s drive to stem out fake news. The #EnaknyaGakHoax or literally meaning “Tasty without Hoax” will reach out to at least 100,000 students across the country to educate students how to differentiate between real and fake news.

Turn healthy choices into exciting rewards with Healthy 365 app

By
Tan Heng Hong
-

The Singapore’s Health Promotion Board is working hard to ensure Singaporeans choose the healthier choice. To promote healthy eating, the health board has launched a three-month-long Eat, Drink, Shop Healthy Challenge (EDSH Challenge), which commenced on 1 August 2017 and will end on 31 October 2017.

HCS gaining share

According to the Minister of State for Health, Mr Chee Hong Tat, the market share of products with the Healthier Choice Symbol (HCS) has risen to 18% in 2016 from 15% in 2012. He mentioned this at the Ministry of Health (MOH) Committee of Supply Debate 2017.

According to Chee, “there are over 2,500 HCS products available across 70 food categories, compared to just 300 products when HCS started in 2001. The sales of HCS products has been growing at 9 per cent annually, compared to 2 to 3 percent for other food products.”

Healthy 365 app

This year, the EDSH Challenge will be implemented via the Healthy 365 app, which has a feature allowing consumers to earn Healthpoints from healthy purchases. The points can be redeemed for supermarket and F&B vouchers as well as quality for frequent scanners’ lucky draws. Points can be earned from product, dish and drink.

Earn points by opting for healthier choices

Qualifying Product means any item featuring the HCS logo bought in participating supermarkets, petrol marts and convenience stores including 7-Eleven, Cold Storage and NTUC FairPrice.

Qualifying Drink includes beverages sold in participating coffeeshops, food courts, cafes, drink kiosks, or hawker centre stalls.

Participating outlets for drinks include Nanyang Old Coffee Café, Ya Kun, Toastbox and Sharetea.

For a Qualifying Dish, “it refers to any dish sold in participating restaurants, food courts, hawker centre stalls, food kiosks and quick service restaurants that is labelled with any of the HPB’s Healthier Choice identifiers shown below. Qualifying Dish may vary or differ with each participating outlet.”

Partners with qualifying dish include McDonald’s, Pizza Hut, Sakae Sushi, Subway and NTUC Foodfare. The complete list can be found here.

https://www.facebook.com/hpbsg/videos/vb.135254099825195/1816365548380700/?type=2&theater

What Mini Me thinks

Scanning grocery receipts on apps is becoming mainstream. By combining receipt scanning, HPB hopes to encourage more consumers to pick HCS products since some consumers are already scanning their receipts for rewards on other grocery apps.

The EDSH Challenge initiative can also be replicated in neighboring Malaysia where the government has recently introduced their very own Healthier Choice Logo in 2017. However, public knowledge about the Healthier Choice Logo is still minimal.

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