Bangkok Post

Dutch Mill brews up instant coffee

- PITSINEE JITPLEECHE­EP

Dutch Mill Co, the producer of Dutch Mill dairy products, is branching out into instant coffee to challenge Nescafe, the longtime market leader.

Yesterday Dutch Mill introduced Arabus premium instant and 3-in-1 coffee products to the Thai market.

“The expansion into premium coffee will reinforce our position as a global dairy product company, especially with the imminent Asean Economic Community,” said Theerachai Laokosakul­t, new category and internatio­nal business director.

The company is keen on the coffee market because it is valued at 31 billion baht, and it sees room for new players. The overall coffee market can grow by 3.5% a year, while the instant coffee segment can expand up to 8%, he said.

“Dutch Mill saw an opportunit­y to offer pure Arabica instant coffee as no one is doing it here. We also have a strong distributi­on channel, covering 300,000 outlets nationwide from 14 years of sales,” said Mr Theerachai.

Arabus is premium 3-in-1 coffee made with 100% Arabica beans. Dao Coffee from Laos produces it for Dutch Mill.

The company also launched chilled cup coffee, which claims to offer the freshness of brewed coffee as a ready-to-drink product.

A South Korean company produces chilled cup coffee for Arabus. The product will target young white collar workers and college students. Both products are now available at 7-Eleven convenienc­e stores, supermarke­ts, and leading stores.

The company plans to spend about 200 million baht on promotion. The actor Ananda Everingham has been hired as a presenter. For the first year, Dutch Mill expects to gain a 10% market share for 3-in-1 coffee and 5% for ready-to-drink products, with sales of 1.5 billion baht.

“New flavours have been the only coffee innovation the past few years. The 3-in-1 coffee segment has always been dominated by a few major players,” Mr Theerachai said.

Of the market’s 31 billion baht value, 15 billion is projected to come from 3-in-1 coffee, 10 billion from ready-to-drink coffee, 4 billion from instant coffee and 2 billion from 3-in-1 functional coffee. Dutch Mill sales were 20 billion baht last year.

 ??  ?? Theerachai Laokosakul­t (left), Dutch Mill’s internatio­nal business director, actor Ananda Everingham (centre) and a goat present new Arabus instant coffee.
Theerachai Laokosakul­t (left), Dutch Mill’s internatio­nal business director, actor Ananda Everingham (centre) and a goat present new Arabus instant coffee.

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