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Coca-Cola celebrates Malaysia’s 60th Independence Day with limited-edition cans

By
Tan Heng Hong
-

With Malaysia’s Hari Merdeka just around the corner, Coca-Cola Malaysia has unveiled a series of limited-edition Coke to celebrate the nation’s 60th Independence Day, which falls on 31st August.

The images feature cartoon drawings by the Malaysia-born cartoonist Reggie Lee. There are four designs each featuring unique Malaysian scenes from how we eat to how we expect a public holiday to be declared after the country wins a sporting event, usually badminton.

The set of five cans is available on Coca-Cola official store on 11Street.my for RM 22 (USD 5.12), a discount of 56% from the normal price of RM 49.99. Click here to purchase.

Alternatively, you can go to 99Speedmart or other supermarket or minimarket to collect all four designs. The author has so far collected one design.

New Apple Fox cider as sly as a fox

By
Tan Heng Hong
-

Comes in different names

Heineken Malaysia Berhad, known for its Strongbow cider, is introducing a new cider – Apple Fox from New Zealand and domesticated in Europe. Also known as Orchard Thieves, “it’s as sly as the fox and thus can be found in different markets under different names.” The cider is called Orchard Thieves in Ireland, JabolÄŤni Tat in Slovenia, Milo Kleftis in Greece, Lišiak zo sadu in the Czech Republic and Stibitzer in Austria.

ABV 4.5%

The 330ml apple cider is made from carbonated water, cider, sugar, natural aroma, malic acid and 45% apple juice concentrate, giving it an ABV of 4.5%. The current Strongbow range features an ABV of 4.5% for Apple Ciders Elderflower and Apple Ciders Dark Fruit and an ABV of 5% for Apple Ciders Gold Apple and Apple Ciders Honey.

Somersby, the cider from competitor Carlsberg Malaysia, comes with an ABV of 4.5% for the entire range, which comprises Apple Cider, Apple Cider with a taste of Blueberry and Apple Cider with a taste of Blackberry.

Double-digit growth for Strongbow

Both Heineken and Carlsberg are focusing on driving growth in the premium segment including cider. Heineken reported double-digit growth in the cider category in the first half of 2017 amidst a 12.1% fall in revenue attributed to higher sales in June 2016 due to expected price increase from 1 July 2016 and earlier sell-in timing for Chinese New Year in 2017.

Somersby number one in cider

Somersby is the number one brand in the cider category in Malaysia and is actively marketing the product with innovative activation campaigns. Carlsberg derived around 20% of sales revenue in 2016 from the premium range of products including Asahi, Connor’s Stout, Kronenbourg 1664 blanc and Somersby cider.

Sampling to acquire new users

“Come redeem your share of Strongbow Apple Ciders, part of our 200,000 bottle giveaway!” (image above)

Both Somersby and Strongbow concentrate on acquiring new consumers through sampling and free drinks.

The new Apple Fox is available in 320ml cans and 325ml bottles in bars, pubs and restaurants as well as convenience stores, hypermarkets and supermarkets.

Apple Fox is brewed and canned in Malaysia under supervision of Heineken Brouwerijen BV.

What Mini Me thinks

The introduction of Apple Fox by Heineken is interesting because it means there is a new choice for consumers in the fast-growing cider segment. Would Apple Fox cannabalise on Strongbow? It is still early days to tell.

*All the images come from company websites.

Author’s verdict: Apple Fox cider is simply delicious!

Stackable soy sauce-vinegar by Datu Puti

By
Tan Heng Hong
-

Datu Puti has a unique stackable packaging featuring vinegar and soy sauce in one product that can be detached into two. The stackable pares pack by NutriAsia, the maker of Datu Puti, pares the two iconic products that is commonly used in Filipino dishes. Consumers just need to buy the stackable pack to get 500ml of soy sauce and 500ml of vinegar.

The stackable pares pack is the first in the Philippines. Price wise, a 1L Datu Puti soy sauce is retailed at PHP 39, while a 1L Datu Puti vinegar is selling for PHP 33.25. As a contrast, the stackable pack (500ml + 500ml) is available for PHP 38, which means consumers are paying a slightly higher price to secure the vinegar and soy sauce combo.

For consumers, especially in smaller households, who want both in smaller pack, the stackable option is the ideal choice.

*Photographed by the author in Robinsons Supermarket in Manila in August 2017

Splenda-sweetened Right ‘n Lite drink targets calorie-conscious soda drinkers

By
Tan Heng Hong
-

Splenda, the sucralose-based artificial sweetener owned by the American company Heartland Food Products Group, is making strong headway in the Philippines beverage industry.

Rite ‘n Lite sweetened with Splenda

The sweetener is found in zero calorie drink Rite ‘n Lite by Macay Holdings, the bottler and distributor of RC Cola. Rite ‘n Lite was launched in December 2016 featuring four flavours – Zesty Lemon, Tangy Lemon-Lime, Citrusy Orange and Creamy Rootbeer in 250ml can format.

According to Macay Holdings, Rite ‘n Lite is aimed at “health-conscious individuals who yearn for a refreshing drink that’s aspartame-free, with no added sugar, carbs and calories.” Macay Holdings also has RC Cola Free, introduced in 2009, as a zero-calorie carbonated soft drink, also sweetened with Splenda since 2014.

Rite ‘n Lite competes with Coca-Cola Zero Sugar in the no-calorie space.

Better value versus other soda

The new soda drink is positioned as a value beverage at PHP 12.50 each (250ml), 30% better value versus other soda.

Rite ‘n Lite carbonated soft drinks. Photographed by the author in Manila in August 2017

Splenda usage in juice

Splenda is also found in Old Orchard juice distributed by Fly Ace Corporation. The product is described as having 75% less sugar, low calorie and low carbs and is sweetened with Splenda.

Old Orchard juice. Photographed by the author in Manila in August 2017

What Mini Me thinks

Splenda is sold in the Philippines on its own as a calorie-free alternative sweetener. By embracing Splenda and explicitly mentioning the sweetener on the marketing material and packaging, brand owners hope this would improve the appeal with soda drinkers who are looking for zero calorie.

 

Boiled fresh udon noodles with new Lucky Me! bowl series

By
Tan Heng Hong
-

Boiled fresh udon noodles

Monde Nissin Corp, the Philippines biggest instant noodle player, has recently made available the premium Lucky Me! Udon series of bowl instant noodle in the country. The boiled fresh noodles comprise Miso, Tempura and Tantanmen and are priced at PHP 69 (USD 1.35) per bowl.

Made in Thailand

The udon series are manufactured by Monde Nissin (Thailand) Co., Ltd. The range was first officially launched in Thailand in April 2016 and comprises Miso, Tempura and Tom Yum Goong. They are also available in pack in Thailand.

Lucky Me! udon launching event in Thailand in April 2016 (image above)

Real meat and vegetable

Unlike Indomie Real Meat and Mayora’s Bakmi Mewah with meat in retorted pouch, Lucky Me! Udon comes with freeze-dried vegetables and dehydrated minced pork. Still, Lucky Me! Udon Miso and Tantanmen are able to claim to have “real meat and veg” on the packaging. The Udon Tempura comes with a crispy tempura cake.

Image above was photographed by the author at SM Supermarket at SM Mall of Asia, August 2017

The soup is made from long-boiled pork broth to deliver the authentic taste of Japanese udon noodle.

Here are the product descriptions and ingredients on the pack.

Premium pricing

At PHP 69, Lucky Me! Udon is the most expensive cup/bowl noodle in the Philippines on a price basis but still comparably cheaper than Lucky Me! Supreme Sotanghon on a per volume basis.

In-store trial

Image above was photographed by the author at SM Savemore in Manila, August 2017

We have seen similar in-store trial by Nestle Maggi instant noodles for its premium range in Malaysia. In the Philippines, Monde Nissin is working with SM to offer customers with a chance to taste the noodle at the food court. The noodles are on a buy one get one free promotion at SM Savemore Market. Also available at the foodcourt was Indomie Mi Goreng.

Image above was photographed by the author at SM Savemore, August 2017

It is not the first time Monde Nissin is making available its instant noodles at foodcourt. It previously operated Yakiudon bar at SM.

Image above was from Running Pinoy

Monde Nissin has spent a lot of effort in point-of-sale marketing to promote its Lucky Me! Udon series even at the cashier to raise awareness.

Image above was photographed by the author at SM Supermarket at SM Mall of Asia in August 2017

What Mini Me thinks

The instant noodle category is moving up the instant noodle ladder with more premium offerings to encourage consumers to trade up to more expensive products. Obviously, the high price point is a concern for most consumers who are still accustomed to the PHP 25 level per for cup/bowl instant noodle.

Image above was photographed by the author at SM Supermarket at SM Mall of Asia in August 2017

Here Is What Most E-Commerce Startup Founders in Malaysia Studied Before They Were Successful

By
Tan Heng Hong
-

A Study by iPrice Group and 500 Startups on The Education Background of Successful Founders in Malaysia

 As Google and Temasek last year revealed that the future e-commerce sector will become a US$200 billion economy by 2025 in Southeast Asia, many have either joined an e-commerce workforce or initiated a startup to realise this futuristic economy. With Amazon’s recent entry into the region and great successes of local e-commerce startups, the message has been crystal clear to youngsters that we’re at the cusp of the e-commerce boom. Therefore, it would be conventional that the young generation on the verge of entering the working world would be interested to join the e-commerce bandwagon.

However, what major should a pre-tertiary student embark on if one aspires to be an e-commerce founder? Must one study a tech-related field? Did most founders obtained tech know-how prior to founding their e-commerce? What education did startup founders in Malaysia embark before they became successful?

As such, we made a study to answer these questions. By analysing LinkedIn profiles, company websites and reliable news sources, we analysed the education background of successful startup founders in Malaysia. We chose to only analyse founders who successfully obtained a Series A or a higher funding round for their startup. We included this requirement as this is a benchmark of an e-commerce which has provided a product or service that was of value to consumers and has proven great potential for the future.

In a gist, here was what we found out:

Most Founders Studied a Non-Tech Related Degree

Although e-commerce exists through modern technologies, understanding elements such as finance, law and the business behind it remains paramount. This was reflected as we discovered that most founders did not study a tech-related degree prior to founding their e-commerce startup.

Out of 65 startup founders, 77% of them took a major in a non-tech related degree while only 23% founders took up tech as a major. The most popular non-tech major was Finance (9 founders), Business (9 founders) and Law (4 founders).

However, this might be reflective of the lack of tech professionals in Malaysia as well. A recent report by HAYS has highlighted that Malaysia is lacking tech talents which might hinder the growth of e-commerce in the nation. As e-commerce continues to expand in Malaysia and the region, much more personnel with technical expertise is still needed.

The most popular tech majors among founders were Computer Science (8 founders), followed by Information Systems (2 founders), Software Engineering (2 founders) and IT (2 founders).

A Postgraduate Degree Is Not Mandatory for Success

Interestingly we found that 35 out of 65 founders did not obtain a postgraduate degree before founding their e-commerce startup. This was probably a sign that most founders discovered a niche demand in the market and went on to initiate their startup.

In a research by Forbes, it was highlighted that 42% of failed startups fail was because they offered a service or product that with little or no market need at all. So yes, while the opportunities are great in Southeast Asia, aspiring e-commerce founders must first determine a niche market need before initiating their e-commerce. Analyse each e-commerce mentioned in our infographic and it would not be hard to see a familiar pattern that each e-commerce was able to provide a solution that was not previously available to consumers.

Other Interesting Findings

Among all the universities listed in the infographic, HELP University College was the only local institution which produced a significant number of successful founders. Three founders from HELP were PohSoon Chong who founded Hermo, Edmund Kwok and Goh Chee Hau who founded iMoney. In a clear sweep, it was evident that founders preferred universities abroad in their education journey. Meanwhile, the most popular non-local universities which produced three or more founders were the University of Oxford, London School of Economics and Political Science (LSE), University of Melbourne and WHU, Otto Beisheim School of Management.

We also noticed that eight founders went on to complete the prestigious Masters of Business Administration (MBA) or a Doctor of Philosophy (PhD). Six of them who obtained an MBA are Bruno Araujo (iMoney), Chris Leong (Soft Space), Frank Kang (Althea), Jason Kang (ServisHero), Karl Loo (ServisHero) and Nicole Sia (ServisHero) and Dr Konstantin Lange (iPrice Group) who obtained a PhD. Amongst all the founders, only one, Dr. Sivapalan Vivekarajah (EasyUni) who obtained both a MBA and a PhD.

Click here for the infographics.

About iPrice Group

iPrice Group is a meta-search website where Malaysian consumers can easily compare prices, specs and discover products with hundreds of local and regional merchants. iPrice’s meta-search platform is also available in six other countries across Southeast Asia namely in; Singapore, Indonesia, Thailand, The Philippines, Vietnam and Hong Kong. Currently, iPrice compares and catalogues more than 100 million products and receives more than five million monthly visits across the region.

iPrice currently operates three business lines: price comparison for electronics and health & beauty; product discovery for fashion and home & living; and coupons across all verticals.

New Coke Mismo with bigger volume

By
Tan Heng Hong
-

Mismo in bigger 300ml volume

The famous Coca-Cola Mismo, the product of choice for roadside vendors in the Philippines, has now been upsized to 300ml with the price retained at PHP 11. The new bottle with the note “50ml  free” was launched in the market in the first quarter of 2017 to replace the previous 250ml packaging.

https://www.youtube.com/watch?v=dfLwR9cyDxM

As part of the commercial strategy, Coca-Cola FEMSA S.A.B. de C.V., said in its latest Q2 2017 earning transcript that it has upsized major carbonated soft drink packages to emphasise the attractiveness of its portfolio.

Interestingly, the 300ml Mismo with a suggested retail price of PHP 11 was already spotted in January 2016.

Image above was photographed by the author in Manila in January 2016. PHP 7 is the 237ml Timeout Coca-Cola in returnable glass bottle. PHP 11 is the 300ml Mismo.

The new Mismo 300ml (including 50ml extra volume) covers not only Coca-Cola but also other flavoured sparkling water including Royal and Sprite, all selling for PHP 11.

Image above was photographed by the author in Manila in August 2017

Magic Price Points strategy

The 300-ml PET bottle called Mismo, first unveiled in Q2 2013, was developed for on-the-go drinking and was meant to serve as an alternative to returnable bottles. The affordable PHP 10 price point was aimed at consumers upgrading to single-way from returnable.

The Mismo strategy fits into the company’s Magic Price Points strategy to “satisfy consumers’ evolving needs with affordable, single-serve and returnable presentations throughout our markets.”

In 2014, a slimmer 250ml Mismo was introduced to replace the 300ml Mismo.

One-way mix rises to 41% of sparkling volume

Data above from Coca-Cola FEMSA Investor Relations July 2017

Coca-Cola FEMSA S.A.B. de C.V. is optimising its sparkling portfolio towards non-returnable and single serve to generate higher value. The share of non-returnable as a share of sparkling beverage has increased to 41% in 2016 from 21% in 2013.

Data above on the Philippines one-way presentation mix comes from Coca-Cola FEMSA 2015 annual report.

What Mini Me thinks

One-way presentation is set to continue to gain share from non-returnable. Going forward, the focus will be on the non-carbonated beverage category including juice and water. During the first half of 2017, the Philippines operation of Coca-Cola FEMSA S.A.B. de C.V. achieved growth of close to 18% in the water portfolio, according to the company’s Q2 2017 earnings transcript. Non-carbonated beverage category increased by nearly 11% led by juices offset by a fall in powder. The proposed sugar tax hike is a dark cloud in the horizon.

 

 

Brands taking up environmental challenge to lower plastic waste

By
Tan Heng Hong
-

Growing urbanisation and government failure to stem pollution has meant environmental degradation has not be effectively tackled in the Asia-Pacific region. The private sector is taking up the initiative to help stem the rising tide of waste, while gaining public recognition and brownie points in the eyes of consumers and governments.

Plastic waste becomes insurmountable problem

Plastic waste is a mounting issue in the region. The growing use of plastic bottles, which tap into convenience and on-the-go consumption, has led to the overflowing of plastic waste. Governments are ill-equipped to deal with this issue due to limited resources and low consumer awareness on waste separation and recycling.

Coca-Cola lowers plastic use by 40%

In Indonesia, The Coca-Cola Company invested USD 21 million into an affordable Small Sparkling Package (ASSP) production line, the second in the world for sparkling soft drinks after the one in India. The line is able to lower the company’s plastic usage by more than 800 tons a year or up to 40% as part of the company’s sustainability commitment to the environment.

The production line in Cikedokan, West Java will produce high-quality, lighter bottles at a capacity of 188,000 bottles an hour.

Philippines bottled water companies committed to waste reduction

Image above was photographed by the author in Manila in August 2017

In the Philippines, the major bottled water companies – Philippine Spring Water Resources (Nature’s Spring) and LT Group (Absolute and Summit) have introduced bottles that are more eco-friendly offering low carbon footprint.

The following is the amount of plastic reduced per bottle by packaging size for Absolute.

  • 500ml – 20% less plastic use
  • 1000ml – 14% less plastic use
  • 5000ml – 14% less plastic use

What Mini Me thinks

Eco-friendly theme resonates with millennial consumers (18-34-years-old) who holds the key to growth in developing countries The green generation, exposed to sustainability and environmentalism, will encourage brands to instill eco-friendly into their brand DNA going forward.

 

Le Minerale mountain water goes to the Philippines

By
Tan Heng Hong
-

Another Indonesian brand has entered the Philippine fast moving consumer goods (FMCG) industry. This time, Mayora Indah, the producer of Kopiko 3-in-1 coffee, has launched the Le Minerale bottled mineral water to capture a slice of the fast-growing packaged water market.

The Philippines packaged water market is dominated by The Coca-Cola Company (Wilkins), Philippine Spring Water Resources (Nature’s Spring) and LT Group (Absolute and Summit). 

Le Minerale was first launched in Indonesia in 2015. In 2016, the bottled water saw its sales volume in Indonesia surging by 283.4% and volume up by 252.5%, according to the data from Nielsen. The strong performance of Le Minerale can be attributed to its low base in 2015.

Mountain mineral water

Le Minerale comes with the tagline “taste the freshness of mountain mineral water,” the same positioning as the one adopted in the home market in Indonesia. Mountain mineral water is known as “air mineral pegunungan” in Bahasa Indonesia.

Featuring a replica mountain to strengthen brand message

The Le Minerale in-store display unit at the Robinsons Supermarket in Robinsons Galleria shows a replica of a mountain to emphasise the natural source of the mineral water from the mountain.

The television commercial of Le Minerale in the Philippines features a man with a Caucasian face. He is known as the “Le Minerale expert” surveying the mountain and checking the quality of the mountain water. The next clip sees the water passes through a multi-stage filtration to produce safe and clean water for consumers.

Le Minerale is available in 330ml (PHP 8.75) and 600ml (PHP 11.00).

What Mini Me thinks

Indonesian FMCG companies such as Kalbe Farma, Mayora Indah and Nippon Indosari Corpindo are actively growing their presence in the Philippines. The attraction of the Philippines for Indonesian companies is due to the fact that both countries have similar consumption environment with traditional market dominating the retail landscape. There is also a large upwardly mobile aspiration consumers attaching preference to affordability, convenience and quality.

Le Minerale represents an affordable option with mineral water quality from the mountain, pitting itself with Summit Water from LT Group.

*Images: Le Minerale displayed at Robinsons Supermarket, Robinsons Galleria in Quezon City, Manila. Photographed by the author

Mister Potato back with limited-edition red curry flavour

By
Tan Heng Hong
-

Mister Potato is back with a new flavour – Curry Kick (Kari Kick) to add the extra spicy to the potato crisps. The new limited-edition flavour celebrates Malaysian-ness with the red curry flavour as the country’s Independence Day is just around the corner (31 August 2017).

The previous limited-edition flavours included wasabi and fiery chicken.

All out with Mister Potato Purple Sweet Potato Crisps

The key highlight for the Mister Potato brand is the purple sweet potato (ubi keledek) crisps, which first appeared in Malaysia at the end of 2016 and in Thailand and the Philippines at an even earlier date in 2016.

Here is a funny commercial for the purple sweet potato crisps as part of Hari Raya celebration in Malaysia. It is called the ‘wrong cut,’ a reference to circumcision. This funny commercial has received 3.4 million views, 77,000 likes and 12,520 shares as of 9 August 2017.

https://www.facebook.com/misterpotatocrisps/videos/1453889627965484/

The purple sweet potato crisps comes with natural purple colour with a taste that has the best of both sweet potato and potato. It is made using 100% imported sweet potatoes.

The key ingredients are purple sweet potato powder, dehydrated potato flakes, palm olein [(contains permitted antioxidant (E320)], tapioca starch, sweet flavour [(sugar, beet red (E162), salt, flavour enhancer (E621), anticaking agent (E551), flavouring], sugar and salt.

Social media admin working hard to bring laughter to everyone

One unique thing about Mister Potato Malaysia Facebook site is the administrator replies each and every comment. This is appreciated by most readers and improves the brand-customer interaction. The admin, representing the amigo with the moustache, sombrero and poncho, also knows how to interact with Malay users with witty replies that resonates with their sense of humour.

Here is the case study of how Mamee, through, humanizing Mister Potato, has achieved an increase in sales and awareness.

I wonder who is behind the face of Mister Potato?

What Mini Me thinks

The success of the brand does not only mean having the best flavour or packaging but the most crucial element is it is backed by strong marketing with local relevance.

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