CP-Meiji plays on yen for milk

CP-Meiji plays on yen for milk

CP-Meiji Co, one of the largest makers and distributors of dairy products in Thailand, will expand to cover more Asian markets.

The plan aims to cash in on rising milk consumption in Asia and the region's status as a growth engine for investors.

Company president Prasit Boondoungprasert said the company began distributing its Meiji brand milk in Hong Kong in March through chains such as ParknShop and 70 Starbucks stores.

CP-Meiji is also in talks with Wellcome, the No.2 retail chain in Hong Kong, about distributing products there.

Current practice is for CP-Meiji to outsource logistics for its milk in Hong Kong, but it plans to invest in its own logistics system if the business is viable.

Mr Prasit said access to Hong Kong came after CP-Meiji successfully sold milk products in Singapore the past three years.

"We are now the market leader in Singapore's dairy business, controlling a 39% market share," he said.

In Singapore, Meiji competes with many milk brands from Asian and Western countries. Charoen Pokphand Group's logistics system has aided expansion in the city-state.

Per-person consumption of dairy products in Singapore is 60 litres a year, compared with 14-15 litres in Thailand.

Mr Prasit said the growth of milk consumption in Asia has stemmed partly from higher investment and flows of people from the West, where per-person consumption of dairy products is 100-300 litres a year.

Apart from Hong Kong, CP-Meiji is also looking at Malaysia and Indonesia.

The company plans to distribute Meiji milk in Malaysia this year through a Japanese retailer before entering Indonesia next year.

Back in Thailand, dairy makers are still employing a price strategy amid stiff competition.

In response, CP-Meiji has launched premium products like Meiji Gold aimed at women.

New products are expected to help the firm meet its sales growth forecast of 12% this year to 6 billion baht.

Do you like the content of this article?
COMMENT