Lifestyle - Frozen yogurtcups of cold comfort in this tropical heat Publication, PH Daily Inquirer Provider, Philippine Daily Inquirer,

Inc. Date: June 06, 2013 A NICE WAY to cool off in this balmy weather is by indulging in frozen yogurt. This cold treat is popular for its health benefits, and some brands like Golden Spoon and The White Hat have upped the ante with an artisanal approach to flavor combinations or ingredient pairing. Golden Spoon launched its weightless pricing, where customers get to fill their cups with their own choice of flavored frozen yogurt, sauces and toppings. - Currently doing extensive retail branding - Launching new flavors - Updating the look of its stores - Coming up with a new logo Weightless pricing is the ultimate in healthy dessert bringing. If you can pile it in, its yours at no additional cost no matter the weight, said general manager Rica Lopez-de Jesus. But while some frozen yogurt flavors are low-fat or non-fat, calories still add up because of the toppings. Best to choose fresh fruit, not one soaking in heavy syrup. At White Hat, waffles are topped with yogurt and winning fans for the combination of textures and flavors. Toppings along with the yogurt include: - Cinnamon-spiced roasted apples - Whipped cream - Peanut butter - Sliced banana - Strawberries - Almonds - Peaches - Blueberry compote - Fresh mango - Kiwi - Strawberry - Chocolate spread - Cheese - Herbs

Yoghurt and Sour Milk Products in the Philippines HEADLINES Yoghurt and sour milk products declines by about 1% in value Smaller packaging spurs larger sales Fruited spoonable yoghurt grows by 9% in volume Yoghurt and sour milk products experiences an average unit price increase of 3% Yakult Philippines Inc. dominates the yoghurt and sour milk products sector with nearly 70% of value sales Yoghurt and sour milk products is expected to grow at 2% CAGR in constant terms over the forecast period TRENDS Regular drinking yoghurt manufacturers have started introducing smaller package sizes. This has made their products more affordable for consumers and encouraged daily consumption of their brands. ex. Dutch Mill Yoghurt drink reduced its package size from 180ml to 90ml. In order to stay competitive, Alaska Yoghurt Milk Drink also reduced its package size from 180ml to 110ml. Yoghurt and sour milk products is expected to decline by about 1% in value terms in 2012 due to weak sales performance of pro/pre biotic drinking yogurt, which holds nearly 90% of the total market size. The decline in sales is largely due to the weak economy, household grocery lists as families attempt to save on money. Fruited spoonable yoghurt is expected to experience the most robust growth in 2012 with a 9% increase in volume sales. The successful launch of Nestl Fruit Selection yoghurt gave Nestl Philippines Inc. the confidence to launch another product line, Netl Acti-V yoghurt. The new product launch is being aggressively marketed in 2012. This will increase volume sales for fruited spoonable yoghurt significantly because many consumers have switched to the cheaper yoghurt brands of Nestl Philippines Inc. Drinking yoghurts average unit price is expected to increase by 3% in 2012. The launch and aggressive marketing of Nestl Fruit Selection drinking yoghurt are resulting in strong sales for the product, which will ultimately result in a higher average unit price for drinking yoghurt in the Philippines. Spoonable yoghurt will have an average unity price increase of less than 1% in 2012. The launch of Nestl Acti-V yoghurt made many consumers switch from more expensive imported brands such as Elle & Vire to the cheaper Nestl Acti-V brand. Fruited spoonable yoghurt tends to be the most popular yoghurt variant in the Philippines. Filipinos tend to prefer the sweet and fruity flavor of fruited spoonable yoghurt compared to the more sour taste of plain spoonable yoghurt. Consumers also tend to prefer yoghurt with natural fruit bits because this is perceived to be healthier compare to flavoured spoonable yoghurt. In 2012, the most popular flavor was strawberry, followed by mango and then mixed fruits.

 The market size of sour milk in the Philippines remains negligible. The flavor of sour milk products does not appeal to the majority of Filipinos. Yoghurt in the Philippines will still have a relatively small market size in 2012. Yoghurt tends to appeal only to women with higher disposable income. This therefore deters unpackaged yoghurt from gaining popularity in the Philippines. COMPETITIVE LANDSCAPE In 2012, Yakult Philippines Inc. stood as the undisputed market leader in the Philippine yoghurt and sour milk products sector. The company is expected to hold almost 70% value share, reaching nearly Php 4-billion in sales revenue. Its strong brand equity is a result of its long presence in the country, Yakult Philippines Inc. popularized drinking yoghurt through its direct sellers. The brand was aggressively marketed in its early years in the Philippines, focusing on the benefits it provides for digestive health. The company continues to launch periodic advertisements to remind consumers of Yakults benefits. Dutch Mill Co Ltd is expected to experience the fastest growth in 2012. Dutch Mills aggressive marketing in 2010, targeting mothers and their children, has proved effective as it results in stronger brand recall amongst consumers in 2012. Dutch Mill has adapted a low price positioning strategy in 2012. The company shrunk its package sizes to 90ml and sells the product at about Php 8 per unit. This strategy will significantly help its sales growth as it is able to target those with a lower disposable income. The brand has become known amongst consumers as a healthy drink to give to their children, which thus will result in Dutch Mill Co Ltfs estimated sales growth of nearly 9% in 2012. Niche marketing has been effectively used in 2011 and 2012. Dutch Mill Co Ltd, for example, markets its Dutch Mill brand specifically as a healthy drink for mothers to give to their children. Nestl Philippines Inc. also uses this strategy when it markets its Nestl Fruit Selection brand, focusing specifically on sales to active working women in their 20s and 30s. Netl Philippines Inc later launched Nestl Acti-V to target more mature women in their late 30s and 40s. International manufacturers hold about 97% value share in the Philippine yoghurt and sour milk products sector. Only a few domestic companies such as Alaska Milk Corporation attempt to compete with the international giants. Many domestic companies are deterred from entering the yoghurt and sour milk products sector due to limited product demand in the Philippines. In addition, many domestic companies currently do not have the facilities to be able to manufacture yoghurt and sour milk products. Investment into the new technology may not prove feasible for domestic companies. After the successful launch of Nestl Fruit Selection yoghurt, Nestl Philippines Inc decided to take it a step further by introducing Nestl Acti-V focuses on the digestive health benefits the brand provides. The brand claims to have added fibre and live micro-organisms that can help bowel movements. The brand uses Philippine celebrity Cherie Gil to endorse the brand through TV commercials. The brand also prices itself lower than competitors, selling a 100g container for about Php 24. The brand was initially introduced in strawberry flavor.

 Standard brands contribute to the majority of the yoghurt and sour milk products market size in the Philippines. The majority of the consumers of yoghurt and sour milk products in the Philippines tend to fall in the middle-income segment and therefore usually prefer standard brands due to their good quality and reasonable price. Imported premium brands such as Yoplait and Elle Vire are also available but tend to appeal to consumers with higher disposable income levels. Premium brands also tend to have more limited distribution channels. Economy brands are not visible in the Philippines because these products tend not to appeal to those in the lower-income segment. PROSPECTS The health and wellness trend is likely to gain more popularity in the Philipp ines in the long term. Filipina women are quickly becoming more concerned about their weight as a result of the media and Western influence. Married women with children may start to become more concerned about their families overall health. This may therefore assist in increasing the future demand of yoghurt and sour milk products in the Philippines. Yoghurt and sour milk products is expected to grow in value at about 2% CAGR in constant terms. The large market size of pre/pro biotic drinking yoghurt is likely to limit the growth of the Philippine yoghurt and sour milk products sector. However, spoonable yoghurt is likely to drive the growth of the industry in the long term. Spoonable yoghurt is quickly becoming popular as a healthy snack, especially amongst Filipina women in the middle-income segment. Spoonable yoghurt is expected to grow in volume at 3% CAGR. Spoonable yoghurt is likely to continue to gain popularity amongst the middle-income segment, especially amongst women. Many women in the Philippines are likely to start associating spoonable yoghurt with weight loss. The new spoonable yoghurt varieties launched by Nestl Philippines Inc are also likely to help drive the growth of the sector. The introduction of more affordable variants will allow more consumers to be able to afford spoonable yoghurt products and consume them on a more regular basis. Drinking yoghurts average unit prices are expected to decline by about 1% CAGR in constant terms over the forecast period. Owners of pro/pre biotic drinking yoghurt brands such as Yakult and Bear are likely to keep unit prices low to maintain their share and encourage consumers to continue competition amongst low-priced brands such as Dutch Mill Yoghurt and Alaska Yoghurt Milk Drink. The average unit price of spoonable yoghurt is also expected to decline as more affordable brands such as Nestl Acti-V and Nestl Fruit Selections become more popular. Distribution of yoghurt and sour milk products is likely to continue to be mainly through hypermarkets, supermarkets and convenience stores. Pro/pre biotic drinking yoghurt players are likely to also use direct selling to help maintain the categorys sales growth. Producers of regular drinking yoghurt that targets the youth segment may attempt to increase their distribution through school canteens.

 Manufacturers are likely to continue focusing on market niches as this has proven effective in the past. Players in spoonable yogurt are likely to continue to focus their marketing efforts towards the middle-income female segment, whilst in drinking yoghurt, companies are likely to continue focusing on families and the youth segment to drive sales growth. In addition, manufacturers are likely to continue producing smaller, more affordable package sizes to capture market segments with less disposable income. Nestl Acti-V may find steady growth due to the growing health and wellness trend amongst middle-income consumers in the Philippines. Many women in the Philippines are quickly becoming more conscious about their weight. Nestl ActiV is also more affordable compared to the majority of its competitors and is likely to capture a larger market base. Competitors may respond to this through price promotions or by introducing more affordable variants of their own. CATEGORY DATA See Table 1 Table 12