MARKET The market outlook for Dairy Champ Sweetened Condensed Milk and Evaporated Milk (“Dairy Champ”) remains positive in Malaysia due to the tremendous popularity of “Teh Tarik” (milk tea). Whether it is enjoyed at a mamak stall, a coffee shop, or made at home any time of day, the specialty beverage has become part of the Malaysian lifestyle. While some prefer the distinctive creamy taste as a bread spread, a topping, or a cooking ingredient, Dairy Champ has proven to satisfy the taste buds of a broad consumer following.

The world dairy market is constantly developing and evolving, and many of the challenges and opportunities it faces are driven by population and income growth; consumer health concerns; and changing worldwide dietary patterns. However, to its credit, Dairy Champ was one of the pioneer brands that managed to capture the mamak stall segment for “teh tarik”, which is now one of its biggest business operations.

Today, Dairy Champ products are distributed domestically in Malaysia and many other parts of the world, constituting approximately 45% and 55% respectively, of total annual sales turnover. In the domestic market, the products are supplied to all major hypermarkets, supermarkets, dealers, wholesalers, and food service outlets including restaurants, coffee shops and mamak/teh tarik stalls. In export, Dairy Champ products are distributed to more than 60 countries including the ASEAN, North and Central Asia, the Middle East, the Asia Pacific region, South and Central America, the Caribbean, and Africa.

ACHIEVEMENTSDairy Champ Sweetened Condensed Milk and Evaporated Milk are manufactured by Etika Dairies Sdn Bhd (EDSB). Formerly owned by Etika International Holdings Limited (EIHL), it is one of the world’s largest manufacturers and distributors of sweetened condensed milk. On 30 June 2014, EDSB was acquired by one of the leading publicly listed Japanese food and beverage companies; a comprehensive operation

employing a workforce of 18,000 people.The collaboration between EDSB and the Japanese company presents a solid competitive market advantage for Dairy Champ. It enables EDSB to continue satisfying customer needs by interpreting and understanding evolving expectations; applying relevant insights collected through market research; and effectively planning for continued growth.

HISTORYFounded in 1997, Etika Dairies Sdn Bhd was set up by a group of experienced dairy industry veterans to engage in the manufacture and distribution of milk products in Malaysia. In 1999, EDSB completed the installation of its

of Veterinary Services Inspection regulations and requirements. Dairy Champ has implemented QAP and HACCP programmes to ensure quality consistency, with an even broader commitment that ensures all its products are certified Halal.

Both Dairy Champ SCM and EM are the perfect complement for coffee and tea to smoothen and enhance the taste and texture. The products are also well suited for baking, desserts, bread spread, and as a base in soups and sauces. For those seeking a more indulgent taste experience, Dairy Champ Sweetened Condensed Filled Milk, Sweetened Creamer Vitaminised, Evaporated Filled Milk, and Full Cream Evaporated Milk are widely popular choices amongst consumers.

The company also repackages and distributes a range of other products that include full cream milk powder, instant coffee powder, chocolate malt powder, and tea dust.

RECENT DEVELOPMENTS In order to meet the demands of Etika’s growing business, and to expand Dairy Champ’s market share, Etika Dairies embarked on UHT technology in 2012. This development, targeting the ready to drink segment for both domestic and export markets, created additional capacity for the company. A plant, to accommodate the growth, was built on a two storey factory and warehouse, with an attached multi-storey office, located in Meru, Klang, Malaysia.

Dairy Champ UHT milk production commenced in January 2013, when four variants were launched that included Chocolate and Strawberry Flavoured Milk, Full Cream Milk, and Low Fat High Calcium Milk. The flavoured milk range targets the market for children, whereas full cream is targeted more for family consumption, and the low fat, high calcium range is geared toward young, health, weight conscious adult females.

In 2013, the company extended its production line for sweetened condensed milk in response to additional demand from both local and export markets.

PROMOTIONIn support of the increasing number of Malaysians who choose Dairy Champ as their preferred sweetened creamer, the company has embarked upon numerous targeted marketing campaigns.

Every year it participates in a variety of events and functions organised by

both government bodies and private companies. Crowds are entertained by “Teh Tarik” performances, and ample wet samplings of Teh Tarik

are an integral part of creating a positive brand experience.

During Hari Raya Puasa, Dairy Champ produced a series of creative press advertisements in the national newspapers, and an attractively designed recipe booklet was specially launched for distribution during this festive season.

In addition to active ground events, in recent years Dairy

Champ has initiated marketing activities that include TV advertising, print

media, nationwide brand billboards, and TV drama sponsorship, in an effort to bring the brand to a wider consumer base.

Although primary marketing campaigns are designed to appeal to the domestic market, the company is also well tuned-in to the international market. The export division is an active member of MATRADE; this enables Dairy Champ to reach global buyers by participating in international trade fairs such as the Halal Showcase, which provides access to an emerging market.

BRAND VALUES Recognising that in today’s complicated retail environment consumers are looking beyond what a brand offers on the surface, Dairy Champ strives to satisfy the mass market with quality

first modern and fully automated sweetened condensed milk production line in the Meru, Klang, Selangor, Malaysia factory. That same year, it launched a commercial line of sweetened condensed milk products throughout the country under the brand Dairy Champ; an achievement which was followed by export sales to Malawi.

In 2003, Etika International Holdings Limited was incorporated in Singapore, and then in 2004, it became the holding company for Etika Dairies. Initially listed on the SGX Catalist Exchange, it was upgraded to the Mainboard in June 2009.

On 30 June 2014, EDSB was acquired by one of the leading Japanese beverage companies as part of its overseas business

expansion. The collaboration is expected to enhance the long term development of EDSB’s business operations.

PRODUCTDairy Champ Sweetened Condensed Milk (SCM) and Evaporated Milk (EM) are made from the highest quality dairy cow milk and vegetable oil, which are further enriched with vitamins. The products are processed under the most stringent quality and hygienic conditions, with random production line

samples frequently tested and recorded before any product is released to the market. Quality control is a top priority at every level of Dairy Champ’s production process. The company has achieved ISO:9001 certification, and is in full compliance with the Department

products, at affordable prices, while still meeting the discerning taste expectations of consumers.

The brand is readily identifiable by its distinctive logo of a champion’s trophy, and its tag line “Champion by Choice”, which not only signifies quality products, but provides consumers with a sense of identification and connection to champions. It aims to inspire consumers to make positive choices, and motivate them to achieve greater heights.

By keeping up with market needs and trends; investing in new technology; widening its distribution channel; introducing new products; and carrying out extensive marketing activities, while at the same time maintaining an uncompromising commitment to product quality, Dairy Champ remains a significant force in the region’s dairy industry.

www.dairychamp.com

• The brand’s Sweetened Condensed Milk and Evaporated Milk can be jointly added to tea or coffee to make the drinks smoother and tastier.

• Dairy Champ Vitaminised Milk is fortified with six vitamins, calcium and protein; packed in 500g packages, it is available in all hypermarkets.

• UHT stands for Ultra Heat Treatment; this sterilisation process is used primarily for sensitive products such as milk, soya, and fruit juice. UHT products typically have a shelf life of six to 12 months, and do not require refrigeration until they are opened.

• Etika Dairies products are also exported under the brand names Dairy Star, Mr Farmer, My Choice, Doreen, and Gold Cow.

• Generally, sweetened condensed milk is not suitable for infant feeding, as it is not formulated as a breast milk substitute.

THINGS YOU DIDN’T KNOW ABOUTDAIRY CHAMP

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