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New Mitsui, ABC dairy farm, processing facility launched

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

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

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.

Poor response for sustainable palm oil

Image from newbritainoils.com

47 companies contacted

During the first half of 2017, WWF contacted 47 companies headquartered in Singapore and Malaysia for the Palm Oil Buyers Scorecard study. The respondents were asked about their core actions and commitments in sourcing for sustainable palm oil. The report can be downloaded here.

Only 30% of the companies responded to the study and only 3 firms out of 47 have a public commitment to use sustainable palm oil.

Here are the results

Malaysia’s Mamee Double-Decker (M) Sdn Bhd and Munchy Foods Industry Sdn Bhd are the only two Malaysian companies that disclosed they are using 1-25% of certified sustainable palm oil (CSPO), as defined by the Roundtable on Sustainable Palm Oil (RSPO). Both are members of RSPO and only Mamee has a public disclosure on CSPO use. 

In Singapore, the top score goes to Denis Asia Pacific Pte Ltd (Ayam Brand) with a commitment to 100% CSPO use by 2018. At the moment, its CSPO usage is 50-75%. The company, the maker of canned food, started using CSPO in 2010.

Wildlife Reserves Singapore said its CSPO usage is 75-100%. The entity is a self-funded organisation based in Singapore which manages the majority of zoos in the country.

Zero CSPO usage

The following Malaysian companies said they are not using certified sustainable palm oil (RSPO):

  • Beryl’s Chocolate & Confectionery Sdn Bhd – chocolate
  • Brahim’s Holdings Berhad – in-flight catering
  • Lay Hong Bhd (Nutriplus) – poultry and egg
  • Perfect Foods Manufacturing (M) Sdn Bhd – biscuit

Among the non-respondents from Malaysian and most likely to be using 0% RSPO are:

  • Adabi Consumer Industries Sdn Bhd – sauces
  • Aik Cheong Coffee Roaster Sdn Bhd – coffee
  • Gardenia Bakeries (KL) Sdn Bhd – bakery
  • The Italian Baker Sdn Bhd – bakery
  • White Café Sdn Bhd – maker of OldTown white coffee
  • Chek Hup Sdn Bhd – coffee
  • Network Foods (M) Sdn Bhd – chocolate
  • Biz Alliance International (M) Sdn Bhd – instant noodle

Consumers not expect to care about sustainable palm oil

Most Malaysian companies expect their consumers not to care whether they source CSPO or not because the awareness about CSPO in Malaysia is minimal. As a palm oil producer, consumers are inculcated on the benefits of palm oil and there is no campaign and little political will to educate consumers about sustainability.

In Singapore, it is the same situation albeit a slightly higher awareness about sustainability.

What Mini Me thinks

Unless the companies are proactively exporting their products overseas such as Mamee, which has a big presence in Australia and in other Western countries where RSPO is a big issue, there is little or no incentive to embrace RSPO.

From mameesnacks.com (The Mamee site in Australia)

Malaysian and Singapore consumers have yet to reach a stage where sustainable palm oil is important even though they are suffering from the annual haze emitting from Indonesia. The key concern for them is addressing the practice of burning rather than punishing manufacturers for not using RSPO.

New look for Bintang Radler 0.0%, first half Bintang soft drink sales down

PT Multi Bintang Indonesia Tbk reported a 11.4% year-on-year sales decline in soft drink sales for the first half of 2017. This comes after a 105% year-on-year jump in soft drink revenue in the first half of 2016 and a 50% increase for the entire year in 2016.

No reason was given by the company on the decline of its soft drinks revenue, which has been a star performer in the past following the ban on alcohol sale in minimarket and convenience stores in 2015.

PT Tirta Prima Indonesia

In May 2017, Multi Bintang made an important statement announcing the creation of a joint venture PT Tirta Prima Indonesia with Heineken Asia Pacific Pte Ltd on 26 May 2017.

The role of the new entity is to engage in the business of the soft drink industry that has been previously done by Multi Bintang.

The growing shift towards halal may put a damp on the soft drink business since it is currently associated with the beer maker. By housing the non-alcoholic business under the new entity, it is hoped that the move will increase the unit’s performance by keeping it separate from the alcoholic business, said Binaartha Parama Sekuritas analyst Nafan Aji cited by the business daily Kontan.

There is also the possibility that Multi Bintang will no longer report the performance of its soft drink business going forward.

New look for Bintang Radler 0.0%

The Bintang Radler 0.0%, launched in 2016, has been given a new look in 2017. Below is how the old Bintang Radler 0.0% looks like. The new design (see above) features a bright yellow color scheme, leaving only a smaller patch of silver to highlight the iconic red Bintang (star).

Below is the old Bintang Radler 0.0% packaging.

 

The TVC for the Bintang Radler 0.0% in the new packaging highlights the camaraderie of a group of young restaurant owners chilling out after a day’s work. It also emphasises the message Bintang Radler 0.0% goes well with food.

https://www.youtube.com/watch?v=eBi1bwtho08

New Heineken Light

In line with the growing trend towards mid-strength beer worldwide, the company officially unveiled Heineken Light in Jakarta in August 2017. Francis Aswin, Marketing Director of PT Multi Bintang Indonesia Niaga, described Heineken Light as “perfect for consumers who want low-alcohol, low-calorie beer with a refreshing taste.” Heineken Light has a 3.3% ABV and is low in calories (99 calories). The beer is available in 330ml bottle sizes and 320ml cans.

What Mini Me thinks

The launch of Heineken Light is part of a move by Multi Bintang to release lighter alcoholic drinks to increase its consumer base. In the fourth quarter of 2016, the company introduced Strongbow cider, which is imported from Singapore.

The separation of the soft drink business could be a good move to disassociate the soft drink business from the alcoholic business, thus providing greater assurance to Muslim consumers.

Premium Astaxanthin–infused egg with super anti-oxidant benefits

A premium egg infused with the super anti-oxidant Astaxanthin caught my eyes at the recent Selangor Expo at Setia City Exhibition Centre. According to the company, the eggs are now available at Jaya Grocer and Village Grocer in Malaysia’s Klang Valley. The Premia Astaxanthin eggs were first launched in September 2016.

Algaetech International Sdn Bhd, a local biotechnology company, is the first Astaxanthin producer in Southeast Asia.

Benefits of Astaxanthin

Astaxanthin is derived from Haematococcus pluvialis, a microalgea which produces astaxanthin. Astaxanthin is beneficial to the eye, cardiovascular, central nervous system, immune system and fertility.

The hens are fed with the freeze-dried Haematococcus pluvialis powder to produce egg yolks that have a deep coloration thanks to the presence of astaxanthin.

Difference between Premia egg and normal egg

Compared with a normal egg, the Premia egg has omega 9, DHA and astaxanthin. It has slightly higher protein versus a normal egg, lower in cholesterol but higher in carbohydrate. However, the Premia egg is significantly lower in omega 6.

The eggs are produced and packed by Selasih Aman Sdn Bhd located in Kerling in the state of Selangor.

A tray containing of Premia Astaxanthin eggs is priced at RM 10 at roadshow and expo. Online, it is selling at RM 15 on the company’s official portal.

Above is the photo of the the Premia Astaxanthin egg booth at Avenue K taken by the author in September 2017.

Regional push towards low/no sugar including new low-sugar F&N Seasons Ice Lemon Tea

F&N has reacted swiftly to Singapore Prime Minister Lee Hsien Loong‘s call to cut sugar content in drinks during the National Day Rally speech with the new Seasons Ice Lemon Tea with reduced sugar. The RTD tea contains 36% less sugar compared with the regular Ice Lemon Tea.

Pokka reformulating juice drinks

In Singapore, Pokka said it a press release on 23 August 2017 that it has started “reformulating its Soursop and Guava juice drinks to meet Health Promotion Board’s (HPB) 12% criteria.” The two juice drinks currently have 12.3% sugar content.

Going down the sugar-free path in Indonesia

In Indonesia, we have seen RTD tea companies experimenting with the sugar-free variants for their popular jasmine tea. Thailand’s Ichitan has launched Tea Tawar, the first of its kind in Indonesia. This was followed by Sosro releasing the unsweetened version of its iconic Teh Botol.

Low sugar energy drink in Thailand

In Thailand, TCP Group recently introduced Ready Black and Ready Pink premium functional energy drinks with lower sugar.

Zero calories CSD

In the Philippines, Macay Holdings, the bottler and distributor of RC Cola, launched Rite ‘n Lite in December 2016. The Zesty Lemon, Tangy Lemon-Lime, Citrusy Orange and Creamy Rootbeer are made with Splenda, the sucralose-based artificial sweetener. The drink is free from aspartame.

What Mini Me thinks

Government anti-sugar regulations and shifting consumer choices are forcing beverage companies in Southeast Asia to increasingly innovate around low/no-sugar claims without sacrificing on taste.

Limited-edition Nescafe RTD coffee exclusively at Shell, Petronas, new Black Ice

Nescafe Malaysia has unveiled two new RTD coffee in September 2017. This time, the limited-edition coffee is exclusively available at petromarts – Petronas and Shell. The limited-edition Nescafe Cappuccino is sold at Shell Select, while the limited-edition Nescafe Tarik Kaw is retailed at Kedai Mesra, the petromart of the state-owned fuel company Petronas.

Nescafe’s strategy of making available a unique beverage for each channel partner is a replication of an earlier method employed by its staunch competitor Wonda for the limited-edition, 100% Arabica range – Indonesian Mandheling (Petronas), Colombian coffee (Shell) and Brazilian coffee (7-Eleven).

New Black Ice

In addition to the two limited-time offers, Nestle has launched the Nescafe Black Ice RTD coffee in the country. The black coffee has a minty icy cool aftertaste, thus befitting the name Black Ice. Black Ice is available in all leading retailers.

Tarik Kaw, Creamy Roast has highest energy

In terms of the nutritional content, the limited-edition Tarik Kaw and Creamy Roast have the highest energy (kcal) per a 100ml serving, while the Black Roast has the highest total sugar, followed by Mocha. Black Ice and Kopi O has the lowest sugar count.

What Mini Me thinks

As packaging design is important to stand out in the crowded shelf, Nescafe has the opportunity to provide the limited-edition (ie cappuccino) with a more visually stunning design. However, this opportunity is missed as the Nescafe brand bends on keeping the signature design unchanged even for products offered for a limited time only.

Ready Pink and Ready Black to keep 20-to-25-year-old awake

Thailand’s TCP Group, the maker of Krating Daeng and Ready (เครื่องดื่มเรดดี้) energy drinks, announced in September 2017 the launch of Ready Black and Ready Pink in 150ml glass bottle. The premium energy drinks are aimed at 20-to-25-year-old office workers and young consumers.

https://www.facebook.com/readyenergy/videos/1894530220562472/

Sugar tax

The drink will contain less sugar as a response to the Thai government’s tax on sugary drinks which came into effect on 16 September 2017.

THB 100 million for marketing

Some THB 100 million has been spent by TCP Group to launch the two new energy drinks, said Surachai Chonglertvarawong, TCP Group’s director of marketing.

Premium energy drink to drive growth

The premium energy drink (with a retail price of at least THB 15), is set to drive the energy drink market forward. The total retail value of energy drink stood at THB 20 billion and thanks to premium product, the entire market is forecast to rise by 1-2% in 2017, reported the Bangkok Post.

In 2017, the premium energy drink segment is set to achieve retail sales of THB 1.4 billion. Nielsen data shows the Ready brand has over 50% of market share.

For him

Ready Black Honey Lemon flavour contains collagen, 40% more zinc and green tea.

For her

Ready Pink Lychee Lemon comes with collagen, 110% more vitamin C and green tea. The vitamin C helps to suppress free radicals.

The new Ready Black and Ready Pink are in a transparent natural colour compared with the existing Ready where the beverages are in red, purple and green.

Ready Boott (purple) is for fit and firm. The beverage is made from red grape juice and pomegranate juice. The key ingredients are taurine, L-arginine, caffeine (50mg) and vitamin B complex (B1, B2, B6 and B12).

Ready Goji (red) is for beautiful skin and good eyesight. The beverage contains juice from concentrate – red grape juice, goji berry juice, strawberry juice, blackcurrant juice and raspberry juice. The key ingredients are taurine and caffeine (50mg).

Ready Plus (green) is for detoxification. The drink contains grape juice from concentrate. The main ingredients are fibre, chlorophyll and guarana.

Volt energy drink in PET bottle debuts in Thailand

Ajethai, the producer of Big Cola in Thailand, has unveiled Volt (โวลต์) energy drink in a smaller PET bottle. The new 215ml energy drink complements the existing Big Volt (บิ๊กโวลต์) energy drink in a larger 300ml PET bottle, which was introduced in early 2017. Volt contains vitamin B3, B5 and B6. The variants comprises zinc, ginseng and goji berry.

Students, white collar (ie office worker) and blue collar (ie taxi drive) are the key target segment. The key message of Volt is the energy drink helps to provide consumers with the mental alertness to become successful in their career and life.

https://www.facebook.com/bigcolathailand/videos/vb.241938712526406/1396754170378182/?type=2&theater

The retail selling price of Volt is THB 10, which is equivalent with other energy drinks in glass bottles in Thailand.

What Mini Me thinks

It is not sure if Volt will cannabilise the sale of Big Volt in PET bottle. It does show Ajethai is going mainstream with a smaller packaging so that it has a product sitting next to leading players like M-150, Krating Deang and Carabao in glass bottles.

 

 

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