Fruit Tea Sosro, Indomaret and Garena have collaborated to connect the RTD tea with Arena of Valor (AOV) gamers in Indonesia.
AOV, the multiplayer online battle arena (MOBA) game developed by Chinese tech giant Tencent, has over 200 million active players in China. In Indonesia, the popularity of AOV is reflected in the inclusion of the game as part of the 6 esports that will be contested at the Asian Games 2018 along with Clash Royale, Hearthstone, Starcraft 2, PES 2018 and League of Legends.
Indonesia is the biggest mobile games market by both revenue and players in Southeast Asia, according to Niko Partners.
By buying 2 Fruit Tea Yuzu (350ml) at Indomaret from 25 May 2018 to 25 August 2018, consumers can redeem exclusive in-game items ranging from Dreadwyrm Maloch skin to double EXP.
Wings Food’s Golda Coffee Dolce Latte launched in early 2018 appears to follow the low-price strategy of the company’s Isoplus isotonic drink. The price of Isopus (350ml) has been kept at IDR 3,000 (USD 0.21) since its was first launched in 2016. The new Golda Coffee Dolce Latte carries the same price tag of IDR 3,000.
Store check on klikindomaret.com by Mini Me Insights
Golda Coffee is made from Brazilian coffee (without specifying whether it is robusta or arabica), low acid (go easy on the stomach) and Belgian milk to create an affordable but indulgent RTD coffee drink.
The maker of Carabao energy drink Carabao Group Public Co Ltd announced in mid-June 2018 that it would launch Carabao Can Green Apple in Thailand at 7-Eleven for THB 25 from 14 June 2018, reported The Nation. The launch also ties in with the “Sawasdee World Cup, Get Lucky with Carabao” campaign.
First launched in the UK, the company describes the carbonated energy drink as “a new great tasting energy drink from the UK.”
Targeting Gen Y
Carabao, the number two energy drink maker in Thailand with a 24% volume share in 2017 (Nielsen data), is actively recruiting new generation of consumers and youngsters (Generation Y consumers) to the Carabao brand. The goal is to cover all segments of the market including the core working class consumers.
The company sees an opportunity in meeting the taste of young consumers where few domestic players have modernised their energy drinks.
Caraban Can Green Apple was launched under the concept “Don’t Say Can’t, Carabao CAN” to help young consumers channel their positive energy to tackle new challenging experiences.
Sathien Setthasit, chief executive officer of Carabao, said the concept underscores “the millennials’ courage, challenges, fearless practicality and love of living life in style.”
Challenging market
Nielsen data shows the energy drink market in Thailand posted an average sales volume per year at 0.6% between 2014-2016 then it turned south with a 2.7% decline in 2017. The market dived further by 3.6% year-on-year in the first three months of 2018, according to Nielsen. Traditional trade accounted for 73% of sales in 2017.
This further deterioration of the market suggests a slowdown in demand from the core 26-45-year-old user base who is earning basic to medium wages and who prefer non-carbonated energy sweetened drink in bottled, not canned.
Moving in the same direction as Warrior
TC Pharma, the maker of Krating Daeng, has something similar albeit not the green apple taste for the Malaysia and Vietnam markets. The Warrior sparkling energy drink plays the same role as Carabao Can Green Apple of reconnecting the energy drink with a younger demographic through flavour and the sparkling taste.
Photo Credit: Warrior
What Mini Me thinks
The new Carabao Can Green Apple could set in motion the momentum to revitalise the Thai energy drink market and repositioning the category back on the growth track.
Another thing that energy drink has not been done well in the past is embracing healthy attributes. One thing that it can learn from China is how to harness natural ingredients to roll out natural energy drinks to recruit non-drinkers.
Lee (centre, in green) with the children and caretakers of Pusat Jagaan Lambaian Kasih and volunteers from 7-Eleven Malaysia and NGOHub Asia.
Kuala Lumpur, 20 June 2018 – In conjunction with Hari Raya, 7-Eleven Malaysia, the nation’s favourite convenience store chain recently spread festive joy to a group of 35 orphans from Pusat Jagaan Lambaian Kasih. Alongside its startup NGOHub Asia, they brought the orphans to a garment retail store in Pudu to buy them a new set of Raya clothing to be worn for the upcoming Hari Raya celebration.
The volunteers coordinated the shopping session by dividing the children into groups. Each group then took turns to try out their choices for Raya clothing. With full excitement, the children picked out their preferred garbs and among top picks are the jubah, a loose-fitting traditional robe and Baju Melayu, a two-piece Malay traditional outfit that comes with a long-sleeved top and a pair of trousers. They also tried on casual shirts and slacks for a more contemporary spin on Raya fashion.
The day was then concluded with an appetizing feast to break fast at Rasa Utara, a Malaysian restaurant that specializes in Northern Malaysian cuisine located at Berjaya Times Square. The large spread consisted of Malay-style chicken in tomato sauce, fried vermicelli with bean sprouts, mixed vegetables, local fruits, refreshments such as teh tarik and rose-flavoured syrup, among many others. 7-Eleven Malaysia also distributed goodie bags that contain a variety of plush toys and stationaries to further bring happiness to the children.
Ronan Lee, 7-Eleven Malaysia General Marketing Manager said, “With Hari Raya just around the corner, we wanted to do something special for the children by gifting them brand new Raya outfits to usher in the festive spirit and enhance their mood of enjoying the holiday season. It is essential to spread positivity to the children at this time, as doing so would help remind them of the joy and meaningfulness of celebrating the festivity. We at 7-Eleven Malaysia strongly believe in uplifting the lives of those who need us, and knowing the the positive impact we make encourages us to continue our endeavours of being Always There For You.”
About 7-Eleven Malaysia
7-Eleven Malaysia Holdings Berhad through its subsidiary 7-Eleven Malaysia Sdn. Bhd. is the owner and operator of 7-Eleven stores in Malaysia. Incorporated on 4 June 1984, 7-Eleven Malaysia has made its mark in the retailing scene and has been a prominent icon for over 33 years. 7-Eleven Malaysia is the pioneer and largest 24-hour standalone convenience store operator in Malaysia with over 2,235 outlets nationwide and serves more than 900,000 customers daily. 7-Eleven stores can be found across bustling commercial districts to serene suburban residential compounds throughout Malaysia, from petrol stations and LRT stations to shopping malls and medical institutions. 7-Eleven is Always There For You.
Mamee DyDo Distribution Sdn Bhd is injecting the Nutrigen brand with a stronger Japanese element with the launch of the だいすき (Daisuki or Love It) Nutrigen campaign.
The Daisuki Nutrigen contest was held from 1 April 2018 to 15 May 2018 offering three grand prizes comprising a trip for two to Disneyland Tokyo Japan.
Nutrigen mulberry flavour
As part of the Daisuki approach, Nutrigen cultured milk has been added with a new mulberry flavour, which joins the existing less sugar and original variants.
New Nutrigen Mulberry flavour. Photo Credit: Minimeinsights.com
In May 2018, Mamee DyDo launched Yobick. The introduction of Yobick and the Daisuki move is seen as part of the company’s push to rebuild its portfolio to concentrate on higher-quality products for a healthier lifestyle.
Performance dragged down by Cheers
Mamee DyDo Distribution, which is 51% owned by the Japanese firm, has failed to perform to expectation, dragged down mainly by the declining sale of its Cheers carbonated beverages in line with the overall fall in carbonated beverage sales in Malaysia. As a result, DyDo has to post “an impairment loss of ¥269 million in its consolidated financial results for the fiscal year ended January 2018 for goodwill arising from our acquisition of Mamee DyDo Distribution shares,” according to a notice issued by DyDo on 2 March 2018.
The future plan is to discontinue Cheers brand of carbonated soft drinks and to “accelerate availability of new, high-quality products that accord with consumers’ growing preference for healthy lifestyles,” the notice says.
Will contribute 2% of June 2018 Sales from Participating Retailers
SHAH ALAM, June 18, 2018 – There is hope when everyone plays their part. Ayam Brand™, the 126-year-old canned healthy and convenient canned food favourite of Malaysians will be contributing 2% from the brand’s total sales in June 2018 from participating retailers to Tabung Harapan Malaysia in support of Malaysia’s fiscal health.
Participating retailer chains include AEON Retail, AEON BiG, Econsave, GIANT Hypermarket, Mydin Hypermarket, Pacific Hypermarket, Sunshine Square, TF Value-Mart and The Store.
The initiative encourages consumers to participate and contribute towards Tabung Harapan at no additional costs to them as the contribution will come from their regular purchase of Ayam Brand products.
“Ayam Brand™ is pleased to join other Malaysians in contributing to the publicly funded Tabung Harapan to support the on-going cause in supporting the nation’s financial situation while promoting patriotism among Malaysians. Tabung Harapan’s need is urgent, and the timing is perfect as Ramadan and Raya is the time for giving,” said Mr Nathan Deverre, Ayam Brand™ Malaysia’s Strategic Marketing Advisor.
Among the top-selling items for Ayam Brand during this season is their Coconut Milk, Sardines in Tomato Sauce, Tuna products, Pineapple Chunks and Sweet Corn. All Ayam Brand products are preservative-free and MSG-free, and certified Halal.
In Malaysia, the brand has been active in Corporate Social Responsibility initiatives and in donating during natural disasters such as floods and earthquakes for many decades.
“Ayam Brand has been a part of Malaysian life for 126 years. It is natural for us to step up when there is a need. We are happy to support Malaysia,” Nathan said in closing.
Ayam Brand, a household name in Malaysia and Asia for 126 years, is famed for its wide range of quality and healthy canned food that are preservative free and contain no added MSG. Ayam Brand products are manufactured in state-of-the-art facilities that meet the highest international standards with worldwide-recognized certifications (HACCP, ISO 9001) and are certified ‘Halal’. For the past four consecutive years from 2013 to 2016, Ayam Brand has been ranked in the Top 10 as Malaysia’s most chosen FMCG brands, according to Kantar Worldpanel’s Brand Footprint Study.
For more information on Ayam Brand, please visit www.ayambrand.com.my or join facebook :Ayam Brand-World of Recipes
The excise tax on sugar-sweetened beverages under the Tax Reform for Acceleration and Inclusion (TRAIN) has been implemented for nearly half a year already. We take stock on how the tax has impacted the Philippines food and beverage industry.
Wholesale sugar prices increased
First, we look at sugar, the main raw material used in sweetened drinks. Data from the Sugar Regulatory Administration (SRA) shows the wholesale sugar prices in capital Manila have risen by as much as 19-27% between January 2018 and May 2018.
To mitigate the strong rise in sugar prices, the Philippine government has on 11 June 2018 approved the importation of around 200,000 metric tons of sugar.
Beverage companies are substituting high fructose corn syrup (HFCS) with sugar to avail a lower tax rate. The tax rate on drinks with HFCS stands at PHP 12 per litre, doubling that of those using normal sugar at PHP 6 per litre.
The shift towards sugar has generated a surge in demand for sugar for manufacturing purposes. The price hike is also compounded by the inability of local production to fill rising need as sugar production is forecast to have a shortfall of around 160,000 to 200,000 metric tons in 2018, said Department of Agriculture (DA) secretary Emmanuel Piñol.
The hike in price is impacting both beverage companies as well as confectionery players. The Philippine Confectionery Biscuits and Snack Association (PCBSA) on 4 June 2018 said they wanted to import sugar as the cost of domestic sugar is 200% more than imported sugar.
Coca-Cola Philippines was reported to have lowered the production of its Coca-Cola Original Taste product citing “market availability issues,” reported Business Mirror on 18 June 2018. Due to lack of sugar supply, the beverage company is prioritising the production of specific SKUs to ensure uninterrupted supply. Fast food is impacted with some premises stopped providing customers with the classic Coke.
First quarter performance
The first quarter 2018 report cards of the major beverages companies clearly reflect the impact of the TRAIN law. Price hike was the main strategy to bolster sales revenue at the expense of volume.
Zest-O first quarter sales down double digit
Zest-O Corp, known for its juice drinks and fruit soda, said in June 2018 that it might close some factories in the Philippines citing the tax on sugar-sweetened beverages (SSB), the wage hike proposal and rising sugar cost. Zest-O Chairman Alfredo Yao said the company experienced a double digit losses in its first quarter 2018 sales.
Tang sales down single digit
Mondelez’s Tang powder drink sales in the first quarter of 2018 fell by single digit, said Mondelez Philippines head of corporate and government affairs Shanahan Chua. The company hopes sales would catch up once consumers adjust to the higher prices.
To boost sales, Tang has launched the mobile campaign and added more flavours to engage with consumers. The mobile campaign provides consumers with 10 free SMS with every pack purchased.
Tang has a lot of explanation to do as consumers are not pleased with the strong increase in price.
Cobra energy drinks sales volume down double digit
Cobra energy drink sales volume fell 18% year-on-year during the first quarter of 2018. The price hike of PHP 2 per 240ml returnable glass bottle has resulted in an increase in revenue despite lower volume.
Macay instituted huge price hike as remedial action
RC Cola Mega 800 enough for 4 glasses
Macay Holdings, which is engaged in the bottling and distribution of RC Cola, reported an 8.8% rise in sales revenue in the first quarter of 2018 as the company implemented a “huge price increase” to cover the excise tax. Sales volume, however, fell and impacted bottom line with net profit after tax dipped 61% year-on-year.
Macay expects the Philippines’ sweetened beverage industry will mirror experience in other countries that have implemented sugar taxes where the industry started to recover the following year.
Pepsi-Cola posts single-digit revenue growth
Pepsi-Cola Products Philippines, the bottler and distributor of PepsiCo beverages and snacks, reported a 3.7% year-on-year increase in net sales for the first three months of 2018.
However, the company posted a net loss of PHP 140 million for the first quarter of 2018 due to the impact of the “volume deleverage and higher cost of goods,” a clear sign that volume was impacted.
Coca-Cola volume fell
The Philippines operation of Coca-Cola FEMSA, S.A.B. de C.V saw further decline in volume sales in the first quarter of 2018, down 8.1% with sparkling falling 7% compared with the same period a year ago. Q1 2016 performance was due to the election year and Q1 2017 because of the high base a year ago.Q1 2018 revenue rose 18.5% year-on-year “driven by average price per unit case increase as an adjustment to the excise tax, partially offset by a volume decline.”
C2 RTD tea suffers the same fate
URC’s C2 was relaunched in the first quarter of 2018 to target a new set of consumers as Q1 2018 sales volume fell 2% or down 17% versus Q4 2018.
Conclusion
So far, there is less incentive for beverage manufacturers to lower their sugar content as there is no tax exemption on beverages with a sugar content below a certain threshold.
The SBS tax is applied on a per volume basis. Companies can reduce their sugar but since they can pass on rising cost to consumers to maintain value growth, most are keeping the sugar content intact or replace HFCS with sugar to reduce the tax rate.
The TRAIN law provides tax exemption to beverages sweetened purely with stevia or coconut sap sugar. However, local companies are still not embracing these natural sweeteners due to cost and taste factor.
The Healthier Choice logo has worked wonders in encouraging companies to reduce their sugar levels in Singapore, Thailand and Malaysia. There should be a similar program in the Philippines to get the industry moving towards sugar reduction.
The 2018 FIFA World Cup has commenced. Retail point-of-sale (POS) display is important to whet consumer appetite for the product. Here we have a few examples from Carlsberg and Heineken and their POS displays in Malaysian grocery outlets.
Carlsberg – Probably the Best Football Party
Carlsberg Malaysia is offering limited edition football cans and bottles featuring the flags of selected countries (England, France, Germany, Brazil, Spain and Portugal) in the hop leaf design.
Heineken Malaysia’s Tiger Beer is hosting Roar with Tiger: Football Viewing Parties at selected venues in Malaysia. There is also a chance to win limited edition football merchandise. Download the TigerMY app to collect points and redeem exclusive football memorabilia.
A number of homegrown Malaysian companies have been sold to foreign major corporations and private equity firms in recent years. Japan’s Asahi, which acquired Permanis in 2011, bought Etika Diaries Sdn Bhd in 2014. At the end of 2017, the Dutch coffee house Jacobs Douwe Egberts made the offer to buy OldTown and the shares of OldTown were finally delisted from Bursa Malaysia on 4 April 2018.
CVC buys Munchy
On 12 June 2018, CVC Capital Partners Asia Fund IV announced it had acquired a 100% stake in Munchy Food Industries Sdn Bhd (MFI) and its Malaysian subsidiary Munchworld Marketing Sdn Bhd. According to the press release, Munchy’s had a 21.5% share of Peninsular Malaysia’s RM1.044 billion biscuit market in 2017, data from Nielsen shows.
The value of the deal was worth USD 250 million or RM 998 million, Bloomberg news reported citing informed sources.
Global network
Mr LK Tan, co-founder of MFI, describes the deal as having the potential to turn Munchy into a “global powerhouse” with CVC on board. Over the past 25 years, Munchy has grown into the second largest biscuit player in Malaysia and exports to around 50 countries.
Tan added “CVC’s vision for the brand aligned extremely well with our identity. Their global network and experience will be invaluable in growing the Munchy’s brand into a global name – with new markets, new technology and new innovations”
Munchy was 70% owned by its founders and 30% by TAP Crunch Sdn Bhd, a joint venture between the civil servant pension fund KWAP and PE firm Tremendous Asia Partners Group, which acquired the 30% stake in Munchy in 2014.
Potential share listing for Munchy down the road
With CVC on board, there is a high chance CVC will want to exit at a high price and this would involve floating Munchy on the share exchange.
QSR, 30%-owned by CVC, floating it shares in November 2018
CVC’s other investment in Malaysia is a 24% stake in QSR Brands (M) Holdings Sdn Bhd, which operates KFC restaurants in Malaysia, Singapore, Cambodia and Brunei, as well as Pizza Hut restaurants in Malaysia and Singapore. CVC acquired the stake in 2011. Now, the plan is for QSR to list its shares on Bursa Malaysia in November 2018 to raise RM 2 billion.
Financial information
In the 12 months to December 2015, MFI revenue stood at RM 283.68 million with a net profit of RM 41.34 million, reported The Edge. Revenue rose to RM 300 million in 2016 and the company expected a 30-40% rise in revenue in 2017 over 2016 citing rising demand for 7Days Croissant and other products, reported The Star.
As Malaysians get ready to watch the 2018 FIFA World Cup Russia™, Coca-Cola – an official sponsor of the event – has a lineup of activities and items to bring the excitement beyond the TV screen, including limited edition packaging featuring country colors of popular teams and the host country.
Available from now while stocks last the collection of eight designs features Russia, Brazil, Argentina, Spain, France, Germany, Portugal and Japan.
Football fans stocking up on refreshing Coca-Cola beverages to enjoy during the matches also have a chance to win a variety of official Coca-Cola 2018 FIFA World Cup Russia™ merchandise from various retailers as well as special offers throughout this period and even win a trip to Russia to watch a match live!
The Coca-Cola truck and roving teams will travel to 87 locations around Malaysia to add to the excitement with games, screenings and other on-ground activities. The rovers will be visiting selected retail outlets, McDonald’s restaurants, GSC cinemas and the ever popular mamak shops.
“Coca-Cola is one of the longest-standing corporate partners of FIFA with a history dating back to 1950. Many Malaysians are passionate about football so we want to bring the excitement of every FIFA World Cup close to them,” said Ahmed Yehia, Country Manager for Malaysia-Singapore-Brunei, The Coca-Cola Company.
The Coca-Cola Company is one of the longest-standing corporate partners of FIFA, with a formal association since 1974 and an official sponsorship of FIFA World Cup™ that began in 1978. Coca-Cola has had stadium advertising at every FIFA World Cup™ since 1950.
FIFA and The Coca-Cola Company extended their long-time partnership to until 2030. The renewed commitment by Coca-Cola in the non-alcoholic beverages category includes cash and in-kind products and services in support of the broad spectrum of FIFA-organized events around the globe, including the FIFA World Cup, FIFA Women’s World Cup, FIFA U-20 World Cup, FIFA U-17 World Cup, FIFA Beach Soccer World Cup, FIFA Club World Cup, FIFA Interactive World Cup, FIFA U-20 Women’s World Cup, FIFA U-17 Women’s World Cup, FIFA Futsal World Cup, and the FIFA Confederations Cup.
Coca-Cola also continues to sponsor the closely watched FIFA/Coca-Cola World Ranking for men’s national teams and FIFA Women’s World Ranking.
The Coca-Cola Company in Malaysia
In addition to Coca-Cola, one of the world’s most valuable brands, the Coca-Cola system in Malaysia manufactures, markets and distributes over 80 products including sparkling beverages (Fanta, Sprite, A&W, Schweppes), low and zero-calorie sparkling beverages (Coca-Cola Light, Coca-Cola Zero Sugar, Coca-Cola Stevia, Sprite Zero), juice drinks (Minute Maid Pulpy), teas (Heaven and Earth), isotonic (Aquarius) and water (Dasani).
Coca-Cola has invested over RM1 billion in Malaysia since 2010, creating more than 800 jobs and touching over 75,000 customers directly with a total reach of over 200,000 customers across Peninsula Malaysia and East Malaysia. Through its programmes and partnerships Coca-Cola Malaysia aims to make a lasting positive difference in the local community.
From recycling through partnerships with the Malaysian Nature Society, Global Environment Centre, Reef Check, MareCet, Waste Management Association of Malaysia and Universiti Putra Malaysia; and working on water projects with Muslim Aid Malaysia and Raleigh International to provide access to clean water for more than 23,000 villagers in rural Sabah, to economically empowering women through the Coca-Cola KU entrepreneurship programmes – Coca-Cola is committed to building sustainable communities in Malaysia.
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Q1 2018 revenue rose 18.5% year-on-year “driven by average price per unit case increase as an adjustment to the excise tax, partially offset by a volume decline.”
