Thai Meiji Food Co, the distributor of Meiji products such as gummy, chocolate and powdered milk, has reentered Thailand's 13-billion-baht powdered milk market after withdrawing its business in the country a decade ago because of the financial crisis.
According to Kawamata Naoki, the company's chief executive, although Thailand's powdered milk market has seen flat growth or even a contraction in some years because of Thailand's low birth rate, the Covid-19 pandemic and children's preference for UHT products, the premium powdered milk segment still has plenty of growth potential.
Thai Meiji Food launched the Meiji GU formula Gold EZcube 3, the first powdered formula in a cubic format on the Thai market in February.
The company appointed Moong Pattana International Pcl, the maker of the Pegion brand, to distribute its new products through modern trade and e-commerce channels.
The move seeks to grab a slice of Thailand's powdered formula market and cash in on the favourable growth outlook of the Thai economy.
Thailand is the fifth market in which the company has launched Meiji EZcube after Japan, Hong Kong, Taiwan and Vietnam.
"Meiji EZcube has received a warm response from customers because it is convenient to use and Meiji has good brand recognition and trust among Thai customers. Therefore, it has huge potential for Meiji EZcube in Thailand," he said.
As Meiji EZcube is a new powdered milk category, the company is set to build up brand awareness for this new product in a short-term plan.
It hired Thai singer Sarunrat "Lydia" Deane and her young son Dylan Deane as its brand ambassadors.
Suwanna Chokdee-anand, director and chief executive of Moong Pattana International Plc, said Thailand's powdered milk market has much potential, but the competition has intensified.
However, she noted it is quite challenging because Meiji EZcube has been developed for convenience with an innovative cube-shaped formula which meets the lifestyle of modern Thai mothers.
Moreover, she said Moong Pattana has 40 years of experience in marketing and distributing fast-moving consumer goods, with particular expertise in handling the mother and baby market.
In addition to Meiji EZcube, the company also markets other products in Thailand including gummy, biscuit, yoghurt and collagen products with total sales of 150 million baht last year.
