Nestle hikes price of its powdered milk
Pattanai Luangtrakul presents Nestle’s new Carnation powdered milk with added chicory, spinach and apple.
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Nestle (Thai) Ltd has increased the price of its new Carnation powdered milk product by between three and five per cent due to higher production costs.
The milk, launched last month to replace the old formula is aimed for children aged one and older. It comes with new packaging and dietary fibre from the addition of chicory, spinach and apple. Although the price of the improved milk has risen, Nestle does not expect its sales to be affected this year. "We have added new ingredients that will suit demand in the market," said Pattanai Luangtrakul, children's nutrition category marketing manager. "All parents will consider the product's high quality, rather than price. We believe most parents are willing to pay as long as our products are really good for their children's health." According to AC Neilsen (Thailand) Research, the infant milk market in Thailand was worth Bt8 billion in 2005. Nestle has a market share of 65 per cent, with its Bear Brand product claiming 42 per cent and its Carnation brand has 23 per cent. Pattanai said Nestle expected the market to grow 4 to 5 per cent this year. Revenue generated by Bear Brand and Carnation powdered milks in the first half of the year had met the company's target, but she declined to reveal the figure. The company is aiming to increase Carnation's market share to 27 per cent, which would be the highest since the brand's launch 20 years ago. In the second half of this year, the company will promote its new product by spending more than Bt80 million on a television commercial, sponsorships and promotional activities.
Chalida Ekvitthayavechnukul The Nation
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