Key Asian market gathers pace

By Richard Rennie

Fonterra has raft of products in development to appeal to southeast Asia

With a burgeoning population approaching 1 billion, the southeast Asian dairy foods market can’t be ignored – but it is often eclipsed in marketing programmes by China, its looming neighbour.

Brent Whelan, global Anchor brand GM for Fonterra, said the southeast Asian market carries some of the characteristics of China, but also cultural variances one would expect across such a diverse range of populous countries that includes Vietnam, Philippines, Malaysia and Singapore.

These variances were firmly in the minds of the Fonterra marketers and product developers who will be launching some new protein-enhanced products in coming months.

“We have got a talented team based in Singapore trying to drive a unified strategy, with local execution,” Whelan said.

The foundation product for those being launched in southeast Asia is Anchor’s “Protein Plus” yoghurt range, familiar to New Zealand shoppers.

“It has performed well in NZ, being a strong brand now and coming from nothing in a short time,” Whelan said.

“We are looking at consumer needs that we can leverage off, especially if we can enhance NZ dairy with ingredients that fit with dairy, to make it a bit more functional.”

Fonterra has identified a lasting energy need for families across southeast Asia, and NZ-sourced protein is a key means to meet that need.

The product is launching in Malaysia and Philippines in a powdered form, requiring only the addition of water to reconstitute. It fits with local consumption behaviour, where consumers are more familiar with mixing up milk as a powder than with purchasing it as a liquid product.

In Malaysia the Protein

Plus yoghurt drink is able to leverage off consumers’ familiarity with the strong and enduring Fernleaf brand, trusted and respected by a couple of generations of consumers.

In the Philippines a Protein-Plus product that includes grains is also due to launch.

Development required the full engagement of Fonterra’s innovation centre in Palmerston North to ensure the grain component could be successfully incorporated into a powdered product suitable for reconstitution.

“The final product is probably best likened to a light porridge, really breakfast in a glass,” Whelan said.

In Thailand individual consumption products in liquid pack form have been a focus, including the Anchor ActifFibre product, recognising consumers’ understanding of the brain-gut health axis that is only now becoming more of a topic among Western consumers.

An accompanying launch is for Anchor Beaute, a liquid product containing zinc and collagen claimed to improve skin complexion and due to be available in 14,000 7-Eleven stores.

Whelan said Fonterra has some solid leverage across southeast Asia based on the long-term presence of legacy brands Anlene through Indonesia and Fernleaf in Malaysia. Anlene’s promotion has recently started using Malaysian actress and past Anlene brand ambassador Michelle Yeoh for a #movewithnolimits campaign, aimed at encouraging a more active lifestyle among older consumers.

The 60-year-old Hollywood actress has returned after over a decade’s absence promoting the brand, and Whelan said is the ideal ambassador to represent a healthy product strongly linked to aging actively.

Fonterra has been developing new products for the southeast Asian market, which is growing rapidly.

The aging consumer demographic is proving a valuable platform for the Anlene brand, with increasing clinical evidence backing claims about the value of dairy in the diet of over sixties.

With seven out of 10 Malaysian adults susceptible to poor bone health, Anlene is pushing a strong nutritional and longevity message with the campaign urging consumers to be aware of calcium needs as they age.

Whelan said the brand also provides a good platform for Anchor’s other dairy food products in the southeast Asian region.

“There is a good portfolio of brands there too, including Mainland and Perfect Italiano mozzarella and parmesan products.

“Much of the [southeast Asian] region has huge swathes of consumers moving into the middle class, and this is giving us a lot of hope we can grow even further in the region.”