Other Hot Drinks in Malaysia

PROSPECTS

Healthy living trend drives growth

In 2018, other hot drinks registered solid growth in both retail and foodservice volume terms. The category benefited from the growing healthy living trend, which saw more consumers seek natural and nutrient-enriched beverage choices.

More flavour innovations in other plant-based hot drinks to appeal to younger consumers

In the face of slowing growth in 2018, other plant-based hot drinks observed various innovative new flavour offerings as players sought to revamp the category’s image and resonate with younger consumers. More players launched new flavour variants that targeted school children and young adults, such as the Quaker Matcha Green Tea and Quaker Mocha cereal drinks that are made with functional ingredients, as well as Nestum’s new offerings with real fruit pieces such as Nestum Kurma & Prune and Nestum Mango Tango.

COMPETITIVE LANDSCAPE

Nestlé (M) Bhd remains category leader

Despite facing overall slower growth in other hot drinks, Nestlé (M) Bhd continued to defend its leadership in the category. The company invested in marketing support for its Milo and Nestum brands, with high-profile roadshows and events, such as the annual Milo Malaysia Breakfast Day programme, which aims to promote the importance of a nutritious breakfast for school children.

Associated British Foods Plc registers fastest current retail value growth in malt-based hot drinks

Malt-based hot drinks player Associated British Foods Plc registered the strongest current retail value growth in the category in 2018. The player remained competitive in the face of slowing growth in the category thanks to its successful online marketing and distribution strategy.

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