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Milo Ice offers the icy taste

The icy taste seems to be in vogue in new product development for Nestle (Malaysia) Bhd. After the debut of Nescafe Black Ice, the ready-to-drink category saw the launch of Milo Ice, which also offers the icy taste.

The drink is available at 7-Eleven with a promotion price of RM 2.00 per can.

The new drink has the product description that resembles the Milo Peng or Iced Milo that was launched in Singapore in 2017. According to the official description, “the new MILO Peng was inspired by Singaporeans love for MILO Peng from the MILO Van – now conveniently packaged in a ready to drink format for our hectic lifestyles. It features a more “gao” and chocolatey flavour to cater to local palates. Each serving contains calcium equivalent to a glass of fresh milk.”

Personally, the author has not tried Milo Peng. My guess is, Milo Peng is probably a thicker version and does not have the icy  taste of Milo Ice.

Vinamilk localises its packaging for Malaysia

Vietnam’s Vinamilk’s yogurts have reappeared in Malaysia with a brand new packaging following an initial trial in early 2017. The new packaging comes in English and Malay with a prominent halal logo on the front to assuage Muslim consumers in Malaysia where 62% of the population are Muslims that the yoghurts are safe to consume.

Solving brand visibility issue

The relaunched Vinamilk features a paper wrap that effectively solves the issue of brand visibility and communication. The former packaging does not have product description on the side of the cup, which makes it hard to catch the attention of shoppers unless the four-pack format is tilted. In addition to that, the previous packaging was mainly in Vietnamese.

Local language and prominent halal logo

Now, DS Borneo Trading Sdn Bhd, the importer and distributor of Vinamilk in Malaysia, has solved this issue by coming up with a paper wrap in English and Malay with a prominent halal logo on the front pack. The halal logo is granted by the Halal Certification Agency Vietnam (HCA), a foreign certification body officially recognised by Malaysia’s JAKIM.

Below is the image of the redesigned Vinamilk yogurts in Giant Supermarket featuring the use of English and Malay to communicate the product features more easily to Malaysian consumers.

Below was the original packaging fully imported from Vietnam on display in Giant Supermarket in March 2017.

The back of the new pack contains the description of the ingredients in English and Malay.

More reasonable prices

The prices have been reduced to bring them down to a more reasonable level. For example, Vinamilk Star (4x100g) was previously sold at a price of RM 9.99. Now, it is available for a much lower price of RM 4.79.

The 5 flavours of Vinamilk yoghurt are available in Giant supermarkets across Peninsula Malaysia and Kuching in east Malaysia.

UHT milk in the pipeline

DS Borneo told the author during MIFB 2017 in August 2017 that it has plans to introduce Vinamilk’s UHT milk and yogurt drink into the Malaysian market in the future.

What Mini Me thinks

As Vinamilk embarks on an international expansion, it is crucial to pursue the localisation strategy when it comes to brand communication especially as Vinamilk is relatively unknown in Malaysia.

Relive the joy with classic F&N Orange Crush for Chinese New Year

F&N jumped into retro marketing by bring back the classic Orange Crush soda made with real juice for Chinese New Year. Available only for a limited time only, the drink comes in a slim can featuring the image of the classic F&N glass bottle imprinted with the words 1883, the year F&N was founded.

Orange Crush is sold in a carton (12 x 325ml) and so far is not available as a single unit.

The outer packaging comes in a form of a vintage poster featuring a Chinese lady enjoying the drink. This packaging attracts consumers especially millennials who are curious with the taste of the Orange Crush. Most have never even seen F&N drinks in a glass bottle before and would want to try it especially since the drink is made with real juice. Throwback marketing might help boost sales of F&N during Chinese New Year.

F&N Orange Crush can be bought in hypermarket/supermarket or online at 11street.

Also available is the limited edition F&N Sarsi

 

Outstanding showcase of Tesco Lotus private label products

In November 2017, Tesco Lotus organised its inaugural Tesco Lotus expo at IMPACT’s Challenger Hall to spur year-end spending. Over the course of four days (9-12 November), the event saw the participation of leading product manufacturers, small businesses, local farmers and community groups. The highlight of the event was the showcasing of Tesco Lotus private label products.

Tesco brand Pracha Rath jasmine rice

The fair saw the launching of the Tesco brand of Pracha Rath jasmine rice sourced from rice farmers in northeastern Thailand. The expo ground was decorated with real rice plants in the form of a paddy field to let consumers get up close with the rice. In a way, this helps to strengthen the product’s authenticity.

There were also customer interaction activities to engage and educate them about the rice.

The rice is sold under the Tesco label.

Tesco Organic produce

The organic vegetable section came with the replica of several greenhouses to show consumers how the produce were grown.

The organic eggs were promoted with a robotic chick that slowly emerged from the egg.

Tesco Finest

The Tesco Finest booth featured premium Tesco Lotus private label range complete with wine tasting area, wine cellar and other Tesco Finest food range.

Unfortunately due to its premium positioning, the Tesco Finest booth received a lot less visitors compared with the mainstream Tesco Lotus private label booth next door.

Everything you need

The Tesco Lotus private label exhibition came in the form of a house. The message was Tesco Lotus has everything you need for each section of the house from your kitchen needs to your pet needs. Food sampling was provide to let consumers taste firsthand the quality of Tesco Lotus private label foodstuff.

 

What Mini Me thinks

The private label showcase by Tesco Lotus demonstrates the retailer’s strong confidence in its comprehensive private label range in meeting household needs as well as the maturity of its Finest premium range for those who want something more upmarket. Quality is a key barrier to private label use. Only through continuous consumer education like what this event has achieved and trial will this improve consumer confidence and the desire to purchase more private label products in the future.

*All images above were photographed by the author

End of pricey zam zam water in Malaysia

Zam zam water, which is available at a hefty price, is no longer permitted to be sold in Malaysia after the Saudi embassy in Malaysia ruled against the sale. The letter below was taken from the Desk of the Director-General of Health Malaysia.

Director-General of Health, Datuk Noor Hisham Abdullah said on 9 December 2017 “the Saudi government only allowed the distribution of zamzam water for free to the pilgrims of haj and umrah as well as visitors for personal consumption in limited quantity,” reported The Star.

Moreover, zam zam water, which is obtained from underground sources, is classified as natural mineral water under the Regulation 360A of Food Regulations 1985. Therefore, the importation of zam zam water requires approval from the government.

Any commercial sale of zam zam water abroad is deemed a “commercial fraud,” said the Saudi embassy. This comes as the kingdom does not allow the export of the water abroad.

This marks the end of the sale of the prohibitive zam zam water in Malaysia, which many sellers claim to have curative power.

We have reported about zam zam water in a post in February 2014. A 10 litre zam zam water could be sold for up to RM 100 but it has been proven very hard to verify its authenticity.

Zam zam water is also featured as an ingredient in some of the herbal drinks in Malaysia. The sellers of these beverages have to reformulate their products to avoid being fined under Section 4(1) (f) of Food Act 1983.

The crackdown on zam zam water sale marks the end of the era of zam zam water sale in Malaysia. Unless sustained enforcement is carried out, there will still be the unauthorised sale of the water as the curative power of the water is well known among Muslims worldwide.

Tipco Me juice offers 50% less calories, sugar

Amidst the struggling juice market in Thailand and the sugar tax,  Thailand’s Tipco Foods Plc has rolled out Tipco Me in November 2017. Touted as a premium range of low-sugar, low-calorie juice, Tipco Me contains 50% less calories, 50% less sugar and rich in vitamin A,C and E.

The juice, sweetened with stevia extract, features the Healthier Choice logo issued by the Nutrition Promotion Foundation at Mahidol University.

Juice market heading south

Nielsen’s data shows the Thai juice market decreased by 6% year-on-year in the 12 months to June 2017 as cited in the Malee Group Plc Q2/2017 Opportunity Day Presentation. The sharpest decline is seen in others and economy market, down 16% respectively, premium market (100% juice) fell 0.4%, while medium market (40-99% juice) rose marginally by 0.3% and super economy (under 19% juice) surged 13%.

For the first nine months of 2017, Tipco’s beverage segment reported a 5.6% decline in revenue (including export) compared with the same period a year ago. Domestic sales of all products declined 2.7% year-on-year.

Premium market growing

The premium juice UHT market bucked the trend with a 2% year-on-year growth, according to Nielsen. This premium segment was worth THB 4.72 billion accounted for 35.5% of overall sales with Tipco taking a 28% value share MAT June 2017, followed by Doikham 22% and Malee with 21%. The slide does not have the definition of what constituted premium juice. However, it does shows the premium segment is growing.

Tipco Foods Managing Director Ekaphol Pongstabhon said in the press release during the launch of Tipco Me that the less-calorie, less-sugar segment has been growing by 51% to THB 77 million. This is a segment that is worth looking out for in 2018.

 

 

 

 

2017: A year of Yuzu. New Oishi Yuzu green tea & Mizone Yuzu Lemon

Thailand’s Oishi Group PCL has recently introduced Oishi Yuzu Orange Flavored Japanese Green Tea with Nata de Coco, which marks the highlight of yuzu as the flavour of the year in 2017.

Yuzu has received the spotlight as the flavour of the year with drinks companies in Thailand and Indonesia turning to yuzu to spice up their new product launches. Yuzu is strongly associated with Japan and the marketing of yuzu beverages have a touch of Japan.

Yuzu in Indonesia

We have seen yuzu embraced by PT Savoria Kreasi Rasa for its new yuzu RTD tea in Indonesia. Launched in 2017, the range is available in the form of Yuzu Tea and Yuzu Green Tea.

In addition to Savoria Kreasi Rasa, PT Sinar Sosro has its Sosro Yuzu Fruit Tea, which was made available in 2017. Even the Danone’s sports drink Mizone has embraced yuzu with the new Mizone Yuzu Lemon in the second half of 2017.

 

Yuzu has the potential to go further in its application in beverages or as a combination with other flavours such as lemon. However, it is important to find a delicate balance between the taste of yuzu and green tea to ensure the taste of yuzu does not get too empowering or artificial.

Marigold Uji Cha, a freshly brewed green tea with matcha from Uji infused with rare yuzu juice from Kochi Japan, was first launched in Singapore in 2014. (image above)

 

 

Supermi Extra with bigger portion for the family

Indofood’s Supermi instant noodle now has a new bigger Supermi Extra with 110g compared with a smaller 75g for the normal Supermi. In conjunction with the launch of Supermi Extra is a story contest about mother to celebrate mother’s day on 22 December 2017. The theme is “Does not need to be perfect.”

The mother’s theme is continuation of Supermi’s “Jagoannya Kreasi Ibu” or literally translated as “Mother’s best creation.” Unlike Indofood’s other instant noodle brands such as Indomie, Pop Mie and Sarimi that focus on young consumers, Supermi is a family noodle with mother as the key figure responsible for creating a hearty meal for the entire family.

New packaging with unique recipe suggestion

In September 2017, Indofood unveiled a new packaging for the Supermi range featuring creative recipe suggestion (kreasi recep) on the back of the pack.

Supermi Extra is available in Rasa Soto Daging (Soto Meat flavour) and Mie Goreng Rasa Ayam Pangsit (Fried Noodle with Chicken Dumpling flavour). Each priced at IDR 2,500.

Heineken Malaysia launches 0.0% Tiger Radler, sleek cans in Singapore

Heineken Malaysia Bhd has launched the all-new 0.0% alcohol Tiger Radler Lime Mint. Described as a sparkling malt drink with natural citrus juice, the alcohol-free drink is now available at selected stores in Malaysia from December 2017 onwards.

Tiger Zero a precursor to Tiger Radler Lime Mint

The new Tiger Radler Lime Mint 0.0% reminds me of Tiger Zero, which was made available on a trial basis at selected food service establishments including at Sanoook in October-November 2016. Obviously, the company decided not to proceed with Tiger Zero and replaced it with a Radler version in the form of the new Tiger Radler Lime Mint 0.0%.

Heineken Malaysia now has two non-alcoholic products under its stable – Tiger Radler Lime Mint 0.0% and the lightly carbonated Malta. The latter does not contribute much to the company’s revenue – only a few percentage, according to the company.

Bintang Radler 0.0% in Indonesia since 2016

In Indonesia, PT Multi Bintang Indonesia Tbk was quite early to the game with the launching of the lemon version of Bintang Radler 0.0% in 2016. The zero-alcohol drink was given a packaging makeover in 2017.

Excise tax spurs interest in non-alcoholic segment

As reported by The Edge Markets, Heineken Malaysia Bhd Managing Director Hans Essaadi said in July 2016 that “historically, we stayed away from the non-alcoholic segment, but with the revised excise tax in place and consumer trend that we are seeing, we need to explore.”

The Malaysian government revised its beer excise duty structure to RM 175 per 100% volume per litre from previously RM7.40 per litre and 15% ad valorem tax with effect from 1 March 2016. The new tax regime resulted in the elimination of the ad valorem tax and led to a 10-12% increase in the beer’s excise duty. The new

He rightly said that any new product from the non-alcoholic segment would be realised only in 2017.

Here are the NPDs by Heineken over the years

Also launched in December 2017 is the limited edition Grapefruit variant with a 2% ABV.

2% ABV for new Tiger Radler Lime & Ginger in Singapore

In Singapore, Heineken debuted the new limited edition flavour Tiger Radler Lime & Ginger with a 2% ABV and the sleek can for the existing Tiger Radler Lemon.

Sleek can to meet today’s demand

The new can size meets today’s consumer preferences in terms of being sleeker, easier to hold and transport and able to chill quicker than the regular cans. “At Tiger Beer, we always strive to be at the forefront of innovation. Our new sleek cans are more stylish and sophisticated, an appearance that is as refreshing as the much-loved Tiger Radler within,” says Ms Venus Teoh, Marketing Director at Asia Pacific Breweries Singapore.

 

Tax on sweetened beverage in Philippines a game changer

Pepsi-Cola Products Philippines Inc. was reported by the Philippine Daily Inquirer on 21 December 2017 of planning to reformulate its drinks following the passing of the law by the Philippines government to raise taxes on sugar-sweetened beverages.

Taxes on sweetened drinks passed

The recent passing of the Tax Reform for Acceleration and Inclusion (TRAIN) bill in December 2017 saw the following taxes imposed:
  • PHP 6 per liter tax on drinks containing caloric or non-caloric sweetener
  • PHP 12 per liter tax on drinks containing high fructose corn syrup (HFCS) or combination

Exclusion includes stevia and coco sugar

However, all milk, whether powdered, ready to drink, flavoured or fermented, will be excluded from the tax, as well as ground and 3-in-1 coffee and 100% natural fruit and vegetable juices, meal replacements and medically indicated drinks and beverages sweetened with stevia or coco sugar.

The TRAIN bill favours stevia and coco sugar and there will likely be a strong push towards drinks sweetened with these in the future to avoid the hefty tax.

Pepsi to go for 100% sugar

At the moment, Pepsi-Cola Products Philippines uses 40% HFCS and 60% sugar. The soft drink company said it will reformulate to use 100% sugar. It will sell its HFCS inventory to other companies (possibly a Vietnam entity) to avoid loss. A source at Pepsi said the company started to reformulating its beverages as early as May and the taste will remain the same, reported the Philippine Daily Inquirer.

HFCS has been a contentious issue

The importation or in some instances the smuggling of HFCS into the Philippines has been blamed by local sugar planters for causing the drop in sugar prices. In March 2017, 6,000 people protested in front of the Coca-Cola factory in Bacolod City to demonstrate against the company’s preference for the use of HFCS instead of locally-sourced sugar.

At the end of November 2017, the Sugar Regulatory Administration (SRA) as reported by Manila Bulletin temporarily stopped the importation of HFCS to arrest the decline in sugar prices.

Coca-Cola shifting to local sugar

An earlier article in the PhilStar in April 2017 mentioned Coca-Cola used 90% HFCS and just 10% sugar. But the company has already taken steps and has increased its purchase of local sugar by more than 80% in 2017 to 2 million bags compared with 2016 where it bought 1.1 million bags, reported the Philippine Daily Inquirer on 7 December 2017.

The TRAIN bill has been a momentous event for the Philippines beverage industry. Price hike is imminent in 2018 and reformulation of the sweeteners used in beverages will become a key challenge for industry players. There will likely be more impetus to use stevia of coco sugar as sweeteners going forward.

 

 

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