Other Hot Drinks in Malaysia

PROSPECTS

Players seek to reduce products’ sugar content as consumer health awareness increases

Although other hot drinks is not affected by the newly implemented sugar tax, new product developments in 2019 evolved around the theme of sugar reduction, as Malaysians place growing emphasis on controlling their daily sugar intake. Examples include Nestum Brown Rice, which has 26% less sugar than the regular range.

Demand boosted during Ramadan by products suitable for consumption before and after fasting

The other hot drinks category saws stronger growth in off-trade sales compared to on-trade in 2019, as consumers were attracted by the convenience and ease of preparation of such products as simple breakfast meals, or for snacking purposes at home. Furthermore, during the month of Ramadan, the category saw several advertising campaigns to promote other plant-based hot drinks for Sahur (meal before fasting) and Iftar (meal after fasting).

Quaker fortifies Oat Cereal drinks with added vitamin content

Apart from providing energy, consumers are also seeking to use other hot drinks as a nutritional boost to complement their everyday diets, and close the nutritional gap. To meet such demand Quaker launched an improved formula for its entire range of Oat Cereal drinks, fortifying these products with seven vitamins.

COMPETITIVE LANDSCAPE

Nestlé remains dominant and invests in category, but activities by smaller players reduce its share

Nestlé (M) Bhd dominates the other hot drinks category in Malaysia, with strong leaderships of both flavoured powder drinks and other plant-based hot drinks. The player continuously implements new product developments to stimulate interest, and leads large-scale marketing campaigns such as the annual Milo Breakfast Day and various sporting events to bolster its healthy brand image.

Rising players in other hot drinks bolster utilisation of internet channel, which increasingly appeals to consumers through convenience

Incumbent players tap into the internet retailing channel as an effective way to extend reach to consumers and widen their distribution networks. Maestro Swiss Chocolate Sdn Bhd with its Vico Brand, and GlaxoSmithKline Consumer Healthcare Sdn Bhd with Horlicks, leveraged on partners’ extensive distribution networks and implemented online price promotions to boost sales.

New product developments target increasingly health-conscious consumer base

GlaxoSmithKline Consumer Healthcare Sdn Bhd launched an improved formula and new packaging for its Horlicks brand in early 2019. Meanwhile, in other plant-based hot drinks Quaker Products (M) Sdn Bhd implemented a strong promotional push, launched new packaging and improved the formula for the entire Oat Cereal drink range in mid-2019, adding seven vitamins to stimulate interest among increasingly health-conscious consumers.

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