Dairy producer aims for larger share of children’s UHT milk market

The move comes 13 months after the company suspended production and distribution of pasteurised milk in Thailand as part of a strategic plan to focus on its Foremost Omega 369 brand children's UHT milk, which it said has greater growth potential.

Supasita Kraisri, director of marketing, told a press conference on Thursday that the growth is due to consumers viewing UHT milk as nutritious and convenient for children.

Even though Thailand’s birth rate is declining, more mothers are providing milk to their children as young as one year old.

"Mothers' attitudes towards milk are very positive because they have been well-educated about the benefits of milk, particularly during early childhood," Supasita said.

According to the company’s annual report, the UHT milk market has been growing at a steady rate of about 5% per year annually for the past few years due to an increase in demand from parents looking for affordable nutritional supplements to help their children grow.

Currently, the company's main products are UHT milk for children and Foremost Omega 369, the latter of which has a 41.2% market share over the last year. Those two core products generate the majority of revenue.

According to Thailand's National Food Institute, the market value of UHT milk in 2022 was more than 29 billion baht.

Supasita said that the enhancement of the "Foremost Omega 369" ready-to-drink milk for children is geared towards meeting their nutritional needs, as it is enriched with a variety of nutrients, dietary fibre that aids cognitive development, physical growth, and immune support.

To meet its growth targets and maintain its position as the country's leading quality milk brand, FrieslandCampina Thailand recently launched a premium version of Foremost Omega 369 to, it says, meet the demand of mothers who want to supplement the development of their children's brains.

Supasita said that the regular formula of Foremost Omega 369, the best-selling product for seven years, already contains the basic nutrients that children require.

However, more UHT milk formulas for children's development are expected to be developed in collaboration with specialists and nutritionists.

Apart from providing more benefits with the new milk formula, Supasita said that the company is also focused on expanding its distribution network to fully cover the entire nation so that its products can reach secondary cities and small communities.

Wipas Pavarojkit, managing director of FrieslandCampina Thailand, said the company is focusing on four goals: “Better products, responsible communication, promoting health-oriented lifestyles, and broadening access to nutrition."

Wipas said his company had joined the effort to distribute 1 million cartons of milk to needy children and families.

FrieslandCampina Thailand is a unit of a Dutch multinational that began operating in Thailand in 1956. In addition to Foremost, the company manufactures and sells Falcon, Debic, Ship, and My Boy brands.