Concentrate-d cuppa: Nestle banks on convenience trend in Vietnam to launch new Nescafe products
Nestle Vietnam has tapped the rising demand for convenient beverage options in the country to drive the growth of its ready-to-serve liquid concentrate coffee.
“Vietnam in particular is a country with a very rich coffee culture, and there have also been some novel popular trends emerging over the past few years,” Nestle Vietnam Business Executive Officer Mostafa Youssef told FoodNavigator-Asia.
“Cold coffee tends to be more popular here, and interestingly there has also been a movement towards liquid coffees – which is why we have recently launched a new innovation in the form of a coffee concentrate in a stick.
“The convenience factor is strong with these as all consumers need to do is open up the coffee stick, pour over ice – and that’s all done, they can enjoy a very quick cup of coffee with no need to source hot water to dissolve powder or dilute the coffee unless they want to.”
Labelling transformations: Thailand stresses science and safety for new nutritional labels and health claims rules
Thailand has implemented new nutritional labelling policies for the food industry, with the authorities also issuing more stringent ‘science-based’ guidelines for on-pack health claims.
Various South East Asian markets from Vietnam to the Philippines have been in the headlines for making upgrades to policies and guidelines to improve on-pack nutritional labels for foods and beverages.
Thailand also gazetted a slew of regulatory decrees in January 2024 governing how food and beverages must display nutritional labels on product packaging.
“All food and beverage products will then need to carry nutrition labelling in compliance with the format and provisions of displaying of nutrition information [as per the] Ministry of Public Health guidelines,” local Minister of Public Health Cholnan Srikaew said via a formal statement.
“Food products [manufactured] with labels compliant to previous regulations can still be sold, but the time limit given is not more than three years from the date of these regulations come into force - After this period, the nutrition labelling of all products must be displayed according to these new guidelines.”
New strict guidelines were also issued for food manufacturers making products that carry health claims, with clear differentiations made between nutrient claims, functional claims and disease risk reduction claims.
Palm oil trade shift: Malaysia likely to emerge as big winner with UK’s CPTPP membership approval
Malaysian palm oil has been highlighted to likely to gain an edge in terms of exports to the United Kingdom thanks to the latter obtaining membership into the CPTPP and acknowledgement of the South East Asian nation’s sustainability standards.
The United Kingdom successfully obtained membership to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) trade agreement in July 2023 after two years of negotiations and receiving ratification from all existing member countries.
This entered into force in the second half of 2024, making the UK the 12th CPTPP member – a major trade milestone for the country given its withdrawal from the European Union in 2020.
New documentation from the UK Trade and Agriculture Commission (TAC) advising the Secretary of State for Business and Trade on CPTPP accession had suggested that Malaysia could be a big winner here.
“The risk that CPTPP would lead to an increase in imports of palm oil from deforested land has been determined to be low for a variety of reasons,” TAC highlighted in its report.
“The vast majority of importers are committed to using the Roundtable for Sustainable Palm Oil (RSPO) standard, which is deforestation-free; and for the remainder Malaysia operates a mandatory deforestation-free standard [which is the Malaysian Sustainable Palm Oil (MSPO) standard].
“This is at least equal to the standard applied in Indonesia [ISPO], which Malaysia is to some extent likely to supplant as a supplier of palm oil to the UK.”
Indonesia is not a CPTPP member – current existing members are Malaysia, Singapore, Japan, Australia, Vietnam, Brunei, New Zealand, Mexico, Canada, Peru, and Chile.
As such, with the UK’s CPTPP membership paving the way for zero-tariff Malaysian palm oil exports to the UK as part of the agreement, it is highly likely that the Malaysian palm oil sector will see a boost in the near future.
Huge tax hikes: Vietnam proposes phased 100% alcohol tax rise, 10% for sugar-sweetened drinks
The Vietnamese government has proposed a phased increase on excise taxes for alcoholic beverages to 100% by 2030 as well as 10% for sugar-sweetened beverages, in attempts to curb overconsumption as well as boosting national income.
Vietnam is well-known for having very affordable alcoholic beverage prices, with beers in particular costing well below US$1 at most supermarkets and eateries.
The local government believes that such affordable prices have contributed to high consumption amongst consumers, and that it is necessary to increase taxation on these drinks to ensure public health is not compromised.
“Higher taxation is necessary in order to reduce the consumption of alcohol in Vietnam,” the local Ministry of Finance said via a formal statement outlining its draft regulations.
“The current tax law levies an excise tax of 65% on liquors with 20% ABV and above; 35% for drinks below 20% ABV and 65% for beers – these would be increased to 80%, 50% and 80% respectively under the new regulations in the short term by 2026.
“The plan is to gradually increase these taxes to 100%, 70% and 100% eventually by 2030 – all of these are in line with World Health Organisation (WHO) recommendations to increase retail prices for alcohol by 10%.”
Not-so-sweet baby: Philippines congress could ban added sugar in foods for young children
Members of the Philippines government have called for regulations that would officially ban manufacturers from using added sugar as an ingredient in foods for young children aged three and below.
Sweetness and sugar features strongly in many Filipino foods and can be exemplified by one of the country’s most popular desserts halo-halo.
This has culminated in the rapid rise of obesity and overweight individuals in the Philippines over the past two decades, according to the national science agency Department of Science and Technology (DOST)
“Recent data has found that young Filipinos are at a greater risk of obesity, due to the consumption of food that is energy-dense and nutrient-poor, exacerbated by growing urbanisation and increased incomes,” Senator Imee R. Marcos highlighted to the Senate earlier this year when tabling the bill calling for a ban on using added sugar in food products for young children.
“The proposed bill seeks to ensure good nutrition, optimal child growth and development, and better health outcomes for children.
“To this end, the government, and agencies concerned [need to] implement a ban on added sugar in food for young children, [and] producers/manufacturers shall take responsibility to remove added sugar and look for healthier alternatives in their products.”
‘Clear direction’ needed: Thailand drafts new alt-protein policies that ban certain animal-related terms for plant-based products
The Thai government published draft regulations on governance over the alternative proteins industry, starting with the plant-based sector, and suggested banning certain animal-related terms but allowing others.
This announcement was made by the Thailand Food and Drug Administration (FDA) Food Division, which also established a special project research team to analyse the types of standards and criteria that the regulations would need to cover for the greatest efficiency.
“At present, alternative protein products are seeing popularity amongst consumers and there are many such items on the market, but the control and supervision of the safety aspect of these in Thailand still has no clear direction,” the Thai FDA stated via a formal statement.
“We are embarking on a study of the current production and imports of alternative protein products in the country, and studying the related regulations [to apply this knowledge] in the development of regulations and standards in Thailand.
“This will start with analysis of the plant-based protein sector in Thailand [before moving to] other alternative proteins such as insect-based, cultivated meat or fermentation.”
APAC adjustments: Coca-Cola Europacific bets on Philippines acquisition and Indonesia realignment to boost growth
Coca-Cola Europacific Partners (CCEP) has highlighted that its Philippines acquisition and portfolio realignment in Indonesia stand it in good stead to capitalise on future growth in Asia Pacific.
One of the largest Coca-Cola bottling companies in the world, CCEP also has the major function of producing, marketing and distributing various Coca-Cola-owned products and brands across Europe and several APAC markets.
The firm announced its FY2023 full-year financial results earlier this year, with revenue up 8% year-on-year to EUR18.3bn (US$19.9bn) and profit after taxes increased by 11.5% year-on-year to EUR1.7bn (US$1.84bn).
Within this, the Australia, Pacific and Indonesia (API) region saw a 5% year-on-year increase in revenue to EUR3.75bn (US$4.07bn) and 10.5% year-on-year increase in operating profits to EUR497mn (US$539.3mn), demonstrating strong growth despite having performed a large-scale portfolio realignment in Indonesia and completed a major purchase in the Philippines.
“We have progressed our long-term transformation strategy in Indonesia and also completed the acquisition of Coca-Cola Beverages Philippines together with Abolitz Equity Ventures (AEV) – henceforth, this will have a 60:40 ownership structure with 60% to CCEP and 40% to AEV,” CCEP CEO Damian Gammell told the floor at the investors’ conference announcing the results.
“We are well placed for FY24 and beyond [being] stronger and better, more diverse and robust, and our categories remain resilient despite ongoing macroeconomic and geopolitical volatility.
“We continue to actively manage our pricing and promotional spend to remain relevant to our consumers, balancing affordability and premiumisation [and] have the platform and momentum, now including the Philippines, to go even further.”
In soy we trust: Yeo’s, NutriSoy look to boost Singapore soya milk popularity with fortification innovations
Singapore beverage giants Yeo’s and F&N’s NutriSoy both launched new fortified soya milk innovations earlier this year in a bid to tap on surging consumer health trends.
Although the plant-based category has had a tough time in the region of late, soy milk has long been a supermarket staple in Asia.
The maturity of the sector tends has led to more affordable prices, especially in South East Asian markets such as Singapore where a 1L carton of soya milk (around S$2/US$1.48) retails for less than a 1L carton of fresh dairy milk (around S$3.60/US$2.67).
This has also emerged as a strong driver for soya milk brands to continue investing into portfolio expansion regularly, and this year’s innovation in this area has moved from a previous sugar-reduction focus towards a fortification focus in Singapore.
Local beverage heavyweight Yeo Hiap Seng (Yeo’s), for example, launched a soya milk fortified with a vitamin-mineral combination claiming to support the immune system.
“Beverage brands need to innovate to meet changing consumers needs in this era of evolving consumer lifestyles, and [the new] Yeo’s Immuno Soy Milk offers health-conscious consumers a delicious item that can also support their immunity,” Yeo’s CMO Ang Chong Lee said.
“This is fortified with a combination of Vitamin B6 and Zinc to support the immune system, [and is considered] one of the biggest innovations to our classic soy milk in 70 years [as well as] representing a significant miletone for on of Yeo’s signature beverages.”
Lager leap: Carlsberg Malaysia launches new 1664 Brut to capture wider beer audience
Carlsberg Malaysia expanded its 1664 premium beer portfolio this year with a new lager offering, hoping to appeal to a wider consumer segment with its ASEAN-first launch into this new category.
The brewery owns exclusive rights to the 1664 French beer brand outside of the United Kingdom, including in Malaysia and Singapore, and so far has only sold the 1664 Blanc and 1664 Rosé wheat beers in these markets.
In an attempt to widen its reach, Carlsberg Malaysia introduced the new 1664 Brut lager beer to the local market, taking a multi-format approach by launching this across both retail and foodservice.
“We mean for 1664 Brut to appeal to premium beer drinkers that are looking for lager products, it has a different taste profile with a different edge and a twist to it compared to the well-known 1664 Blanc wheat beer,” Carlsberg Malaysia Managing Director Stefano Clini told FoodNavigator-Asia.
“This will allow beer drinkers that don’t like wheat beer to access the 1664 brand, so we can increase the appeal of the brand and open up to new consumer segments that like a different taste profile.
“It means that our 1664 range in Malaysia now provides a diverse premium brew selection from wheat beer to lager, in the same iconic blue bottle 1664 is known for.”
Snack trends unwrapped: Holistic wellness and protein focus among top innovation drivers across South East Asia
The protein and premium snack segments have been seeing annual growth rates of more than 50% with holistic wellness as the biggest driver of innovation, according to a market intelligence report launched earlier this year.
The findings were based on data as of April 2024, collated into the report “Snack Trends Unwrapped: What’s Shaping the Way We Snack?” by market intelligence firm Ai Palette.
The report listed six trend drivers – holistic wellness, protein focus, sustainability, premium indulgence, convenience, and demand for low or no sugar.
Researchers estimated that 130 million consumers are fuelling the holistic wellness snack segment, with a 43% increase in the two-year compound annual growth rate (CAGR).
The protein and premium segments are supported by a total of 40 million consumers, with two-year CAGR increases of 59% and 54%, respectively.
For sustainability and demand for low or no sugar, the figures are 5.8 million consumers with a 45% two-year CAGR increase, and 2.6 million consumers with a 31.6% increase, respectively.
Convenience saw the biggest growth with 35.3 million consumers and a 168% CAGR increase.
“Consumers prioritise tastier and healthier food choices, due to their focus on holistic wellness. [There’s also a] surge in protein-fortified snacks for satiety and muscle health,” wrote researchers in the report.
