To what extent should a govt interfere in the eating habits of people, even unhealthy ones? The pop beverage and junk food war is simmering in the US as America is caught in the debate on freedom to consume versus responsible eating. Schools are cutting back on campus access to fatty, salty snacks and soft drinks, according to a report released by the US Federal Centre for Disease Control and Prevention early this month. And more measures are being introduced.
USA Today quoted the report on October 6 as saying the states of Mississippi and Tennessee have made the greatest strides. "In Mississippi, the percentage of secondary schools that didn't sell soda or sugary fruit drinks rose from 22 per cent in 2006 to 75 per cent in 2008; in Tennessee, it rose from 27 per cent to 74 per cent".
In New York, billionaire mayor Michael Bloomberg is forcing chain restaurants to post calorie counts. "[Bloomberg's] food issue has become New York City's. Although he has described his battle against unhealthy foods as common-sense public policy that will shed pounds (and save lives), many of his targets overlap with his own cravings," the New York Times said last month, followed by Bloomberg's admission that he likes Big Macs, "like everybody else".
At the national level, President Barack Obama is still toying with the idea of taxing calorie-rich soft drink giants to partly fund his healthcare reform.
The junk food/drink industries are fighting back, however. Coca-Cola ran an advertisement in the New York Times insisting that it's cooperating with schools worried about obesity and will even make the calorie level marking more noticeable for consumers.
A fast food advocate calling itself the Centre for Consumer Freedom also ran a full-page ad in The Times earlier this month, claiming that the government views Americans as being "too stupid … to make good personal decisions about foods and beverages".
It attacks Bloomberg for using tax dollars to launch an advertising campaign "to demonise soda".
In a classic debate between right and responsibility, the ad asks: "Food cops and politicians are attacking food and soda choices they don't like. Have they gone too far? It's your food. It's your drink. It's your freedom".
Increasingly, the junk food/drink industry is feeling as if it's being treated more like a pariah - like the tobacco industry with more and more restrictions being thrown up.
America is unique in the sense that one-third of its population is obese and roughly half is overweight.
While people ought to be able to decide, the American public should bear in mind not just the weighty power of the state but also that of the fast food giants. Having the government unilaterally decide everything cannot be politically healthy in the long run. At the same time, unrestricted, harmful for-profit activities should be reigned in.
Youths deserve special attention and protection, however. And how events unfold in the United States may set a precedent for many other parts of the world as the export of American junk food culture has pervaded nations near and far - even those once remote.
Tuesday, October 20, 2009
Saturday, October 17, 2009
Coke rolls out "mini-cans" in calorie war
Coca-Cola Co said on Wednesday it would launch 90-calorie mini cans of soda to help consumers manage their calorie intake.
The world's largest soft-drink maker said the smaller packages would be available for the Coca-Cola, Sprite, Fanta Orange, Cherry Coca-Cola and Barq's Root Beer brands. The cans will be sold in packages of eight.
The mini cans will debut in New York and Washington D.C. in December. Their nationwide roll-out should be "well under way" by March, the company said.
The Atlanta-based company said last month it would include calorie infor-mation on the front of nearly all its packages as it intensifies efforts to raise consumer awareness about nutrition and a healthy lifestyle. The moves come in the wake of increasingly vocal calls in Washington for taxes on sugary drinks and junk food to help fight the problem of obesity in the United States.
The world's largest soft-drink maker said the smaller packages would be available for the Coca-Cola, Sprite, Fanta Orange, Cherry Coca-Cola and Barq's Root Beer brands. The cans will be sold in packages of eight.
The mini cans will debut in New York and Washington D.C. in December. Their nationwide roll-out should be "well under way" by March, the company said.
The Atlanta-based company said last month it would include calorie infor-mation on the front of nearly all its packages as it intensifies efforts to raise consumer awareness about nutrition and a healthy lifestyle. The moves come in the wake of increasingly vocal calls in Washington for taxes on sugary drinks and junk food to help fight the problem of obesity in the United States.
Tuesday, October 13, 2009
READY-TO-DRINK SEGMENT RECORDS 20% GROWTH
The fruit-juice market grew by 7 per cent to Bt8.2 billion over the last 12 months, thanks to brisk sales of mass market products.
"We have seen growth at about 10 per cent each in both the medium and economy ready-to-drink fruit juice segments, worth Bt600 million and Bt2.7 billion respectively," Pathumrat Pianchorb, the director in charge of branded business for the country's leading fruit juice company, Malee Sampran, said yesterday.
"However, the Bt1.4-billion super economy ready-to-drink fruit juice segment has enjoyed trementdous growth of almost 20 per cent over the past 12 months," she said.
With the rebound in the economy and consumers' purchasing power, the company has witnessed signs of recovery in the fruit juice market over the last two months, she said.
Only the premium ready-to-drink 100-per cent fruit juice segment worth Bt2.8 billion was expected to decline 3 per cent in the period, caused by a fall in pasteurised fruit juice as consumers opted for cheaper products, such as economy and super economy fruit juices.
The market for pasteurised ready-to-drink fruit juice peroducts, which is worth about Bt300 million, dropped sharply by 20 per cent year over the past 12 months as consumers shifted to products with lower prices and longer shelf lives.
There are also many new players competing in the economy product segment.
Malee Sampran expects its sales to increase 5-10 per cent this year to Bt1.8 billion-bt2 billion, of which about 55 per cent is fruit juice and 45 per cent non-fruit juice.
"We are looking to develop and launch non-juice products as well as below 100-per-cent fruit juices next year to balance our product portfolio," she said.
Malee Sampran has budgeted Bt5 million to promote Malee i-Corn, a 100-per-cent corn milk beverage, during the 10 days of the Chinese Gin Je Festival starting on Saturday.
During this period, Chinese like eating vegetarian food.
"It is a great opportunity for us to boost the penetration of our Malee i-Corn corn milk beverage, particularly among the Chinese, who avoid drink dairy beverages during the Gin Je festival," she said.
The company expects Bt200 million in sales of Malee i-Corn during the festival.
Malee i-Corn now leads the Bt120-million UHT corn milk beverage market with a 30-per-cent share.
The market is projected to expand by about 5 per cent this year.
The company aims to increase Malee i-Corn's share to 35-40 per cent by next year.
"We have seen growth at about 10 per cent each in both the medium and economy ready-to-drink fruit juice segments, worth Bt600 million and Bt2.7 billion respectively," Pathumrat Pianchorb, the director in charge of branded business for the country's leading fruit juice company, Malee Sampran, said yesterday.
"However, the Bt1.4-billion super economy ready-to-drink fruit juice segment has enjoyed trementdous growth of almost 20 per cent over the past 12 months," she said.
With the rebound in the economy and consumers' purchasing power, the company has witnessed signs of recovery in the fruit juice market over the last two months, she said.
Only the premium ready-to-drink 100-per cent fruit juice segment worth Bt2.8 billion was expected to decline 3 per cent in the period, caused by a fall in pasteurised fruit juice as consumers opted for cheaper products, such as economy and super economy fruit juices.
The market for pasteurised ready-to-drink fruit juice peroducts, which is worth about Bt300 million, dropped sharply by 20 per cent year over the past 12 months as consumers shifted to products with lower prices and longer shelf lives.
There are also many new players competing in the economy product segment.
Malee Sampran expects its sales to increase 5-10 per cent this year to Bt1.8 billion-bt2 billion, of which about 55 per cent is fruit juice and 45 per cent non-fruit juice.
"We are looking to develop and launch non-juice products as well as below 100-per-cent fruit juices next year to balance our product portfolio," she said.
Malee Sampran has budgeted Bt5 million to promote Malee i-Corn, a 100-per-cent corn milk beverage, during the 10 days of the Chinese Gin Je Festival starting on Saturday.
During this period, Chinese like eating vegetarian food.
"It is a great opportunity for us to boost the penetration of our Malee i-Corn corn milk beverage, particularly among the Chinese, who avoid drink dairy beverages during the Gin Je festival," she said.
The company expects Bt200 million in sales of Malee i-Corn during the festival.
Malee i-Corn now leads the Bt120-million UHT corn milk beverage market with a 30-per-cent share.
The market is projected to expand by about 5 per cent this year.
The company aims to increase Malee i-Corn's share to 35-40 per cent by next year.
Friday, October 2, 2009
Coke makes calorie info more prominent
Coca-Cola Co will change the packaging on almost all its products to more prominently display certain nutritional facts amid increasing pressure on lawmakers to consider taxes on sugary sodas, which some health experts blame for rising obesity rates
The effort, announced on Wednesday,will place calories-per-serving and servings-per-container details on the side of almost all of the soft drink maker's products sold in more than 200 countries.Only fountain drinks, water and beverages sold in reusable bottles will be exempted from the switch.
The company said it "hopes the broken-out details - displayed in black text set in a white oblong box - will be more convenient for customers who want quick nutritional information at a glance."
"Nowmore than ever, people expect facts about the products they consume to be both readily available and visible,"chairman and CEOMuhtar Kent said in a statement.
But some critics see the change as little more than an effort aimed at fending off a possible tax on its products, in-cluding a levy being promoted in a September issue of the New England Journal of Medicine ."One might perceive this move as the companies trying to make an appearance of good-faith efforts to improve nutrition, where their real motive might be too fight off government regulation,"said Kelly Brownell, director of Yale University's Rudd Centre for Food Policy and Obesity, who proposed the tax in the medical journal.
Taxes on soft drinks aren't new. But of the nearly three dozen states that charge sales tax on the beverages, most levies are typically small - averaging about 5%. On a $1 can of soda, that translates to about five cents.
The proposal offered by group of nutrition and economics experts in the medical journal calls for a one-centper-ounce sales tax on the sometimescaloric and sugary drinks, an amount more than double the average state tax.It would increase the levy on that 12 oz.soda can to 12 cents.
Coke, which opposes a potential soda tax, says its beefed up labeling isn't about fending off extra taxes, but is about promoting better health among its customers."There's no silver bullet," spokeswoman Allyson Park said.
"Our company is committed to helping address obesity by encouraging active,healthy living through our products, programs and policies."
Coke said it's already changed packaging on products in Europe and Australia and is in the process of changing labels in the US and Mexico.
Bottles and cans will continue to have regular nutritional labels with more detailed information on the back.
The company expects to complete the switch by the end of 2011, but sooner in the US and Canada where the labels will be added by the end of 2010.
John Sicher, editor and publisher of the trade publication Beverage Digest ,said other competitors could take similar steps in the future."I think we're going to see all the major beverage companies take more initiatives to both increase the health and wellness aspects of their portfolios and to communicate their sense of responsibility to their consumers," he said.
The effort, announced on Wednesday,will place calories-per-serving and servings-per-container details on the side of almost all of the soft drink maker's products sold in more than 200 countries.Only fountain drinks, water and beverages sold in reusable bottles will be exempted from the switch.
The company said it "hopes the broken-out details - displayed in black text set in a white oblong box - will be more convenient for customers who want quick nutritional information at a glance."
"Nowmore than ever, people expect facts about the products they consume to be both readily available and visible,"chairman and CEOMuhtar Kent said in a statement.
But some critics see the change as little more than an effort aimed at fending off a possible tax on its products, in-cluding a levy being promoted in a September issue of the New England Journal of Medicine ."One might perceive this move as the companies trying to make an appearance of good-faith efforts to improve nutrition, where their real motive might be too fight off government regulation,"said Kelly Brownell, director of Yale University's Rudd Centre for Food Policy and Obesity, who proposed the tax in the medical journal.
Taxes on soft drinks aren't new. But of the nearly three dozen states that charge sales tax on the beverages, most levies are typically small - averaging about 5%. On a $1 can of soda, that translates to about five cents.
The proposal offered by group of nutrition and economics experts in the medical journal calls for a one-centper-ounce sales tax on the sometimescaloric and sugary drinks, an amount more than double the average state tax.It would increase the levy on that 12 oz.soda can to 12 cents.
Coke, which opposes a potential soda tax, says its beefed up labeling isn't about fending off extra taxes, but is about promoting better health among its customers."There's no silver bullet," spokeswoman Allyson Park said.
"Our company is committed to helping address obesity by encouraging active,healthy living through our products, programs and policies."
Coke said it's already changed packaging on products in Europe and Australia and is in the process of changing labels in the US and Mexico.
Bottles and cans will continue to have regular nutritional labels with more detailed information on the back.
The company expects to complete the switch by the end of 2011, but sooner in the US and Canada where the labels will be added by the end of 2010.
John Sicher, editor and publisher of the trade publication Beverage Digest ,said other competitors could take similar steps in the future."I think we're going to see all the major beverage companies take more initiatives to both increase the health and wellness aspects of their portfolios and to communicate their sense of responsibility to their consumers," he said.
DANONE SETTLES WITH WAHAHA, SELLS FULL JV STAKE
Food giant Danone and China's largest soft drink maker Wahaha put an amicable end to their long-standing feud yesterday, with the French firm selling its full 51-per-cent stake in their joint ventures.
The deal between the companies, which together ran 39 joint ventures, is still subject to the approval of Chinese authorities but has the "support" of the governments in Paris and Beijing, the firms said in a statement.
"The completion of this settlement will put an end to all legal proceedings related to the disputes between the two parties," they said.
The statement did not give any financial details of the deal, and Wahaha spokesman Shan Qining delcined to release any figures.
The feud began when Danone said it had discovered that Wahaha chairman Zong Qinghou had set up an entire production and distribution network in parallel to the French firm's joint ventures with Wahaha.
In mid-2007 the French firm sought an arbitration ruling, accusing the Chinese beverage gaint of breach of agreement by selling Wahaha-branded drinks without its permission.
"The collaboration between Danone and Wahaha helped to build a strong and respected leader in the Chinese beverage industry," Danone chairman and chief executive Franck Riboud said in the statement.
"We are confident that Wahaha will continue to be highly successful under its future management."
Danone remains committed to China, Riboud said, adding the company was "keen to accelerate the success of our Chinese activities".
The dispute had sparked a series of retaliatory moves in China and abroad, including in the United States and Sweden.
The deal between the companies, which together ran 39 joint ventures, is still subject to the approval of Chinese authorities but has the "support" of the governments in Paris and Beijing, the firms said in a statement.
"The completion of this settlement will put an end to all legal proceedings related to the disputes between the two parties," they said.
The statement did not give any financial details of the deal, and Wahaha spokesman Shan Qining delcined to release any figures.
The feud began when Danone said it had discovered that Wahaha chairman Zong Qinghou had set up an entire production and distribution network in parallel to the French firm's joint ventures with Wahaha.
In mid-2007 the French firm sought an arbitration ruling, accusing the Chinese beverage gaint of breach of agreement by selling Wahaha-branded drinks without its permission.
"The collaboration between Danone and Wahaha helped to build a strong and respected leader in the Chinese beverage industry," Danone chairman and chief executive Franck Riboud said in the statement.
"We are confident that Wahaha will continue to be highly successful under its future management."
Danone remains committed to China, Riboud said, adding the company was "keen to accelerate the success of our Chinese activities".
The dispute had sparked a series of retaliatory moves in China and abroad, including in the United States and Sweden.
Danone settles with Wahaha, sells venture stake
The French food giant Group Danone SA said yesterday it had ended its longstanding feud with Wahaha, China's largest soft-drink maker,by agreeing to sell its 51% stake in their joint ventures.
"The amicable settlement between the companies, which together ran 39 joint ventures, is subject to Chinese regulatory approval but has the support of Paris and Beijing," the companies said in a joint statement.
"The completion of this settlement will put an end to all legal proceedings related to the disputes between the two parties," they said.
The statement did not give any financial details of the deal, and Wahaha spokesman Shan Qining declined to release any figures.
The feud began when Danone said it had discovered that Wahaha chairman Zong Qinghou had set up an entire production and distribution network in parallel to the French firm's joint ventures with Wahaha.
In mid-2007 the French firm sought an arbitration ruling, accusing the Chinese beverage giant of breach of agreement by selling Wahaha-branded drinks without its permission.
"The collaboration between Danone and Wahaha helped to build a strong and respected leader in the Chinese beverage industry," Danone chairman and chief executive Franck Riboud said in the statement."We are confident that Wahaha will continue to be highly successful under its future management."
"Danone remains committed to China," Riboud said, adding the company was keen to accelerate the success of our Chinese activities.
The dispute had sparked a series of retaliatory moves in China and abroad,including in the United States and Sweden.
A Chinese court ruled last year that Wahaha owned the trademark, which was valued by the state-controlled China Daily newspaper at $2.4 billion.
The feud between the two companies was at turns bitter and personal, with Danone trying to install a French executive to replace Zong as chairman in mid-2007. Zong fought off the move,declaring it illegal.
The dispute also struck a nationalist chord, with Zong accusing his French partners of trying to steal a Chinese brand.
But the Wahaha chairman on yesterday adopted a more friendly tone.
"China is an open country. Chinese people are broad-minded people.Chinese companies are willing to cooperate and grow with the world's leading peers on the basis of equality and reciprocal benefit," Zong said in the statement.
Zong founded Wahaha in 1987 selling milk products in a school store.
Danone and Wahaha formed their joint venture in 1996, and the Chinese drink maker credits the foreign investment and technology it gained through that partnership with helping to transform it into a national brand.
Lao Bing, a Shanghai-based food and beverage analyst, however said Chinese companies might see the case as a cautionary tale about the risks of relying on foreign partners.
"They should learn to think twice about the power of capital and that they may no longer have full control over the situation," Lao said."They must not just sign agreements to attract capital,because clauses could jeopardise their development in the future."
"The amicable settlement between the companies, which together ran 39 joint ventures, is subject to Chinese regulatory approval but has the support of Paris and Beijing," the companies said in a joint statement.
"The completion of this settlement will put an end to all legal proceedings related to the disputes between the two parties," they said.
The statement did not give any financial details of the deal, and Wahaha spokesman Shan Qining declined to release any figures.
The feud began when Danone said it had discovered that Wahaha chairman Zong Qinghou had set up an entire production and distribution network in parallel to the French firm's joint ventures with Wahaha.
In mid-2007 the French firm sought an arbitration ruling, accusing the Chinese beverage giant of breach of agreement by selling Wahaha-branded drinks without its permission.
"The collaboration between Danone and Wahaha helped to build a strong and respected leader in the Chinese beverage industry," Danone chairman and chief executive Franck Riboud said in the statement."We are confident that Wahaha will continue to be highly successful under its future management."
"Danone remains committed to China," Riboud said, adding the company was keen to accelerate the success of our Chinese activities.
The dispute had sparked a series of retaliatory moves in China and abroad,including in the United States and Sweden.
A Chinese court ruled last year that Wahaha owned the trademark, which was valued by the state-controlled China Daily newspaper at $2.4 billion.
The feud between the two companies was at turns bitter and personal, with Danone trying to install a French executive to replace Zong as chairman in mid-2007. Zong fought off the move,declaring it illegal.
The dispute also struck a nationalist chord, with Zong accusing his French partners of trying to steal a Chinese brand.
But the Wahaha chairman on yesterday adopted a more friendly tone.
"China is an open country. Chinese people are broad-minded people.Chinese companies are willing to cooperate and grow with the world's leading peers on the basis of equality and reciprocal benefit," Zong said in the statement.
Zong founded Wahaha in 1987 selling milk products in a school store.
Danone and Wahaha formed their joint venture in 1996, and the Chinese drink maker credits the foreign investment and technology it gained through that partnership with helping to transform it into a national brand.
Lao Bing, a Shanghai-based food and beverage analyst, however said Chinese companies might see the case as a cautionary tale about the risks of relying on foreign partners.
"They should learn to think twice about the power of capital and that they may no longer have full control over the situation," Lao said."They must not just sign agreements to attract capital,because clauses could jeopardise their development in the future."
Starbucks coffee brewed in an instant
Chief executive Howard Schultz called "Via Ready Brew"perhaps the biggest opportunity in Starbucks Corp's history as he prepared for the instant coffee product's North American roll-out.
With Via, the coffee chain that introduced espresso drinks to the masses,hopes to steal a big slice of the $21 billion global instant coffee market from established players like Nestle SA's Nescafe and Kraft Foods Inc's Sanka.
"This is the biggest investment we've made in a national launch," said Schultz,who is navigating a turnaround at Starbucks while looking for new products to drive profits.
Starbucks will trumpet Via's debut in the United States and Canada with a week-long advertising campaign that will highlight in-store taste tests pitting Via against Starbucks brewed coffee.
Some analysts have questioned whether American coffee drinkers will flock to Via, particularly since it will compete with familiar and far less expensive products.
Schultz said that due to the higher quality of Via, it would not compete with existing instant coffee products.He added that Via did not cannibalise Starbucks main business in markets where it was tested.
"This is not your grandmother's instant coffee," Schultz said."The quality of Starbucks Via is a mirror image of the quality and taste of Starbucks brewed coffee."
While the CEO said that Via exceeded expectations when it was tested in Seattle,Chicago and London, he declined to reveal expectations for Via profits, the cost of the advertising campaign or the timing of Via's launch in other parts of the world.
A trio of single-serve Via packets will sell for $2.95 in the United States and 12 packets will sell for $9.95. Those prices are significantly higher than Nescafe's Taster's Choice single-serve packets that sell in Los Angeles for roughly $1.50 for six and around $4 for 20.
"Starbucks aficionados won't baulk at the price of Via if they believe it delivers on taste," said Bill Smead, portfolio manager of the Smead Value Fund in Seattle.
William Blair & Co analyst Sharon Zackfia said Via's greatest potential "lies in overseas markets where instant coffee still dominates."
Still, she does believe that Via has added some US coffee drinkers to the ranks of instant coffee users.
"I think (Starbucks) can get a slice of the pie," she said."In Seattle and Chicago,I think they've grown the pie."
Analysts say that grocery stores will be key to Via's success.
Schultz said Starbucks does not yet have a partner to sell Via in supermarkets,but he promises that such a deal will be announced in 2010.
Meanwhile, Schultz said, shoppers can find Via at Starbucks cafes, on United Airlines flights and in Target, Costco,REI, Office Depot and Barnes & Noble stores.
"We think (Via) will have similar results to Starbucks frappuccino and ice cream products sold in grocery stores," portfolio manager Smead said.
Starbucks partners with PepsiCo on bottled frappuccino and with Unilever on ice cream.
"I don't think it will be the core of the business, but it will be a very profitable line," Smead said of Via.
Zackfia said it has been hard for analysts to predict what Via's impact would be, so they have taken a very conservative approach with regard to its impact on Starbucks profits."It could be a potentially positive wild card."
With Via, the coffee chain that introduced espresso drinks to the masses,hopes to steal a big slice of the $21 billion global instant coffee market from established players like Nestle SA's Nescafe and Kraft Foods Inc's Sanka.
"This is the biggest investment we've made in a national launch," said Schultz,who is navigating a turnaround at Starbucks while looking for new products to drive profits.
Starbucks will trumpet Via's debut in the United States and Canada with a week-long advertising campaign that will highlight in-store taste tests pitting Via against Starbucks brewed coffee.
Some analysts have questioned whether American coffee drinkers will flock to Via, particularly since it will compete with familiar and far less expensive products.
Schultz said that due to the higher quality of Via, it would not compete with existing instant coffee products.He added that Via did not cannibalise Starbucks main business in markets where it was tested.
"This is not your grandmother's instant coffee," Schultz said."The quality of Starbucks Via is a mirror image of the quality and taste of Starbucks brewed coffee."
While the CEO said that Via exceeded expectations when it was tested in Seattle,Chicago and London, he declined to reveal expectations for Via profits, the cost of the advertising campaign or the timing of Via's launch in other parts of the world.
A trio of single-serve Via packets will sell for $2.95 in the United States and 12 packets will sell for $9.95. Those prices are significantly higher than Nescafe's Taster's Choice single-serve packets that sell in Los Angeles for roughly $1.50 for six and around $4 for 20.
"Starbucks aficionados won't baulk at the price of Via if they believe it delivers on taste," said Bill Smead, portfolio manager of the Smead Value Fund in Seattle.
William Blair & Co analyst Sharon Zackfia said Via's greatest potential "lies in overseas markets where instant coffee still dominates."
Still, she does believe that Via has added some US coffee drinkers to the ranks of instant coffee users.
"I think (Starbucks) can get a slice of the pie," she said."In Seattle and Chicago,I think they've grown the pie."
Analysts say that grocery stores will be key to Via's success.
Schultz said Starbucks does not yet have a partner to sell Via in supermarkets,but he promises that such a deal will be announced in 2010.
Meanwhile, Schultz said, shoppers can find Via at Starbucks cafes, on United Airlines flights and in Target, Costco,REI, Office Depot and Barnes & Noble stores.
"We think (Via) will have similar results to Starbucks frappuccino and ice cream products sold in grocery stores," portfolio manager Smead said.
Starbucks partners with PepsiCo on bottled frappuccino and with Unilever on ice cream.
"I don't think it will be the core of the business, but it will be a very profitable line," Smead said of Via.
Zackfia said it has been hard for analysts to predict what Via's impact would be, so they have taken a very conservative approach with regard to its impact on Starbucks profits."It could be a potentially positive wild card."
Foreign orders add weight to recovery
Prospects have improved for the local paper industry due to a revival in overseas demand and prices, says Siam Cement Group.
Thailand's top industrial conglomerate said the demand for paper fell by almost 20% in the first half when compared with the same period in 2008 due to the sluggish economy. But the figure has improved in the second half due to larger exports, Chaovalit Ekabut, the president of SCG Paper, said yesterday.
Orders rose in the second quarter over the first three months while third quarter orders remain steady."The overall consumption of paper this year will be lower from last year but it should not be a double-digit decline," he said.
Paper prices, which fell 15% to 20%in the first half year-on-year, have started rising. The prices are now lower than last year's peak by 10% to 15%, Mr Chaovalit added.
The company is focusing on high value-added products to increase their contribution to its overall portfolio to 25% in 2010, up from 20% this year, to enjoy higher profit margins.
SCG Paper, Thailand's largest paper manufacturer, yesterday launched a coffee-cup sleeve produced from recycled paper that comes with a "Thermozense"heat indicator which will be available at True Coffee cafes.
Mr Chaovalit said the new product has been developed under SCG's principle of "green inspiration", which promotes environmental responsibility among consumers. An initial run of 100,000 heat indicators has been produced. The colour of the sticker changes from red to white as the coffee cools.
"True is aiming for technology that enables us to have a better experience in our daily lives and SCG has helped us by creating the innovation that we have been searching for for a long time," said Papon Ratanachaikanont, assistant to the president of True Corp.
"In the past, we depended on foreignmade products by using coffee sleeves imported from China. Now that there are new sleeves from SCG, it will lower our cost by 30%," he said.
Shares of Siam Cement (SCC) closed yesterday on the Stock Exchange of Thailand at 224 baht, down 5 baht, in trade worth 356 million baht.
Thailand's top industrial conglomerate said the demand for paper fell by almost 20% in the first half when compared with the same period in 2008 due to the sluggish economy. But the figure has improved in the second half due to larger exports, Chaovalit Ekabut, the president of SCG Paper, said yesterday.
Orders rose in the second quarter over the first three months while third quarter orders remain steady."The overall consumption of paper this year will be lower from last year but it should not be a double-digit decline," he said.
Paper prices, which fell 15% to 20%in the first half year-on-year, have started rising. The prices are now lower than last year's peak by 10% to 15%, Mr Chaovalit added.
The company is focusing on high value-added products to increase their contribution to its overall portfolio to 25% in 2010, up from 20% this year, to enjoy higher profit margins.
SCG Paper, Thailand's largest paper manufacturer, yesterday launched a coffee-cup sleeve produced from recycled paper that comes with a "Thermozense"heat indicator which will be available at True Coffee cafes.
Mr Chaovalit said the new product has been developed under SCG's principle of "green inspiration", which promotes environmental responsibility among consumers. An initial run of 100,000 heat indicators has been produced. The colour of the sticker changes from red to white as the coffee cools.
"True is aiming for technology that enables us to have a better experience in our daily lives and SCG has helped us by creating the innovation that we have been searching for for a long time," said Papon Ratanachaikanont, assistant to the president of True Corp.
"In the past, we depended on foreignmade products by using coffee sleeves imported from China. Now that there are new sleeves from SCG, it will lower our cost by 30%," he said.
Shares of Siam Cement (SCC) closed yesterday on the Stock Exchange of Thailand at 224 baht, down 5 baht, in trade worth 356 million baht.
THAIBEV TO USE SPORT IN WIDENING NON-ALCOHOLIC DRINKS PORTFOLIO
Thai Beverage is entering the sports or electrolyte drink market through the launch of Power Plus jproducts to help balance out its alcoholic beverage business.
"The company will focus on penetrating the non-alcoholic beverae market, as the revenue from this segment is only 1 per cent of the total. The portion is too small given the company's mission to be an integrated beverage company," Marut Buranasetkul, deputy managing director of Thai Beverage Marketing, said yesterday.
ThaiBev has already taken over energy-drink maker Wrangyer, as its first step in diversifying away from the alcohol business.
ThaiBev's sales in the first half of this year were up only 0.9 per cent on year to Bt54 billion, while net profit rose 9.7 per cent to Bt5.8 billion on improved margins.
ThaiBev wil keep launching three to four products a year, both through its own innovation and through part nership with other companies.
To boost its nonkk-alcoholic bever age business, the company next year would embark on an image-building campaing. Its non-alcolic portfolio now covers sodas,bottled water, coffee and energy drinks.
Power Plus is targeted to be the No by 2012, which requires sales growth of over 15 per cent per year, Marut said. Sponsor controls 60 per cent of the market, follwed by M Sport with 25-30 per cent and Gatorade with 5-10 per cent.
The company has set aside a Bt70 million marketing budget for the new products, targeting health-conscious people as well as sportsmen, to achieve the first-year sales target of Bt300 million or 10 per cent of the market.
At the end of next month, Power Plus will be available in modern trade channels, with sales outlets to be expanded later.
"We haven't invested hugely in the product,as it is made by the Wrangyer factory and wil be supported by Thai Beverage's strong distribution network," he said.
To penetrate the export market,ThaiBev yesterday signed on as an official sponsor for the 25th SEA Games in Vientiane, with Power Plus as its main sponsorship product.
Power Plus is targeted to be No2 player in the sports drink segment by 2012-an annual growth of 15 per cent.
Power Plus joins fray: Thai Beverage is entering the sports or electrolyte drink market through the launch of Power Plus products to help balance out its alcoholic beverage business.
"The company will focus on penetrating the non-alcoholic beverae market, as the revenue from this segment is only 1 per cent of the total. The portion is too small given the company's mission to be an integrated beverage company," Marut Buranasetkul, deputy managing director of Thai Beverage Marketing, said yesterday.
ThaiBev has already taken over energy-drink maker Wrangyer, as its first step in diversifying away from the alcohol business.
ThaiBev's sales in the first half of this year were up only 0.9 per cent on year to Bt54 billion, while net profit rose 9.7 per cent to Bt5.8 billion on improved margins.
ThaiBev wil keep launching three to four products a year, both through its own innovation and through part nership with other companies.
To boost its nonkk-alcoholic bever age business, the company next year would embark on an image-building campaing. Its non-alcolic portfolio now covers sodas,bottled water, coffee and energy drinks.
Power Plus is targeted to be the No by 2012, which requires sales growth of over 15 per cent per year, Marut said. Sponsor controls 60 per cent of the market, follwed by M Sport with 25-30 per cent and Gatorade with 5-10 per cent.
The company has set aside a Bt70 million marketing budget for the new products, targeting health-conscious people as well as sportsmen, to achieve the first-year sales target of Bt300 million or 10 per cent of the market.
At the end of next month, Power Plus will be available in modern trade channels, with sales outlets to be expanded later.
"We haven't invested hugely in the product,as it is made by the Wrangyer factory and wil be supported by Thai Beverage's strong distribution network," he said.
To penetrate the export market,ThaiBev yesterday signed on as an official sponsor for the 25th SEA Games in Vientiane, with Power Plus as its main sponsorship product.
Power Plus is targeted to be No2 player in the sports drink segment by 2012-an annual growth of 15 per cent.
Power Plus joins fray: Thai Beverage is entering the sports or electrolyte drink market through the launch of Power Plus products to help balance out its alcoholic beverage business.
TREND RISKS REDUCED BY HIGH VALUE-ADDED
SCG Paper, a business unit of the Siam Cement Group, plans to boost its proportion of revenue from high value-added paper to 25 per cent by next year.
The move will be aimed at diver-sifying risks arising from general paper consumption, which usually follows economic trends.
President Chaovalit Ekabut yesterday said sales revenue form high value-added paper had showed a slight year-on-year increase so far, while revenue from other products had fallen, due to the economic slowdown.
The proportion of company revenue generated by high value-added paper is about 20 per cent this year, and that is set to increase.
SCG Paper generated revenue fo Bt47.11 bilion last year.
"Paper consumption, both domestically and in export markets, is in line with the world economic situation. If we focus more on innovative products, we have a greater chance of expanding our client base and our markets. At present, SCG Paper manufactures high valueadded products made from paper for several clients," he said.
Chaovlit said total paper consumption in the first half of the year fell 20 per cent year on year in volume, while paper prices fell 15-20 percent. SCG Paper's first-half sales volume declined at a double-kigit rate from a year earlier, but its figures are still better than those of the overall market.
paper-consumption trends and paper prices have been improving in the second half, thanks to the econow 10-15 per ecnt lower than at this time last year.
If Thailand's exports recover in the fourth quarter and early next year, then demand for paper should also improve, he said.
SCG Paper recently began manufacturing coffee sleeves made from recycled paper. The sleeves come with ThermoXense, a heat-indicator sticker that is produced exclusively for True Coffee. If the beverage in the sleeve is hot, the heat indicatkor turns from a red colour to white. SCG Paper has produced 100,000 ThermoZense sleeves for True Coffee and may produce more in the future.
Papon Ratanachaikanont, assistant to True Corp's president, said True Coffee had cancelled the importation of coffee sleeves from China and switched to ordering them from SCG Paper, a Thai manufacturer.
He said True Coffee would raise its full-year revenue target after achieving its earlier target of Bt140 million in only the first half.
The move will be aimed at diver-sifying risks arising from general paper consumption, which usually follows economic trends.
President Chaovalit Ekabut yesterday said sales revenue form high value-added paper had showed a slight year-on-year increase so far, while revenue from other products had fallen, due to the economic slowdown.
The proportion of company revenue generated by high value-added paper is about 20 per cent this year, and that is set to increase.
SCG Paper generated revenue fo Bt47.11 bilion last year.
"Paper consumption, both domestically and in export markets, is in line with the world economic situation. If we focus more on innovative products, we have a greater chance of expanding our client base and our markets. At present, SCG Paper manufactures high valueadded products made from paper for several clients," he said.
Chaovlit said total paper consumption in the first half of the year fell 20 per cent year on year in volume, while paper prices fell 15-20 percent. SCG Paper's first-half sales volume declined at a double-kigit rate from a year earlier, but its figures are still better than those of the overall market.
paper-consumption trends and paper prices have been improving in the second half, thanks to the econow 10-15 per ecnt lower than at this time last year.
If Thailand's exports recover in the fourth quarter and early next year, then demand for paper should also improve, he said.
SCG Paper recently began manufacturing coffee sleeves made from recycled paper. The sleeves come with ThermoXense, a heat-indicator sticker that is produced exclusively for True Coffee. If the beverage in the sleeve is hot, the heat indicatkor turns from a red colour to white. SCG Paper has produced 100,000 ThermoZense sleeves for True Coffee and may produce more in the future.
Papon Ratanachaikanont, assistant to True Corp's president, said True Coffee had cancelled the importation of coffee sleeves from China and switched to ordering them from SCG Paper, a Thai manufacturer.
He said True Coffee would raise its full-year revenue target after achieving its earlier target of Bt140 million in only the first half.
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