Foremost producer eyes half of milk market by 2020

“Even though FrieslandCampina (Thailand) is the No 1 player in the ready-to-drink milk market with a share of 32 per cent, valued at Bt6.4 billion, we have set an ambitious goal of taking over 50 per cent of the (dairy) market by 2020,” managing director Marco Bertacca said yesterday. 

AC Nielsen ranked Friesland Campina as the leader of the Bt20 billion milk market last year, followed by Thai Denmark with 24 per cent, AB Foods with 10 per cent, F&N with 7 per cent and Dutchmill with 7 per cent. 

The company also wants to raise its share of the ultra-high temperature (UHT) processed milk market to 60 per cent from 46 per cent last year.

It was consistently emphasising investment of at least Bt1 billion each year to improve production capacity and efficiency as well as product quality. 

It continues to roll out products to stimulate the market and respond to new demands from customers. 

This year, the company is continuing to develop at least five non-diary and dairy products while exploring the food-service business, such as supplying cream to restaurants and caf?s. 

“In the third quarter, the company is preparing to introduce bottled premium milk that will offer the same quality as pasteurised milk but longer shelf life.

“It will target young adult consumers, as we see more room to grow in this segment,” he said. 

The company always aims for creating the maximum impact on the market. 

Coconut-flavoured UHT milk, which came out in the second quarter of last year, was an example of this. 

It had helped stimulate the market as a whole, and sales of Foremost UHT milk in the second half of 2015 increased by 5 per cent. 

To build brand awareness and promote new products, the company is raising its marketing budget by 20 per cent this year from last year’s figure of about Bt500 million-Bt600 million. 

The strategy is expected to boost revenue 8 per cent to more than Bt16 billion this year from Bt15 billion last year. 

The Dutch dairy manufacturer also makes social contribution one of its priorities. 

For example, it is continuing its “Dairy Development Programme” to instruct local dairy farmers on how to develop their business to reach global standards. 

Over 5,500 farmers are already part of the programme.