Milk makers mull harm of trans fat ban
Two leading condensed milk makers remain positive that the Public Health Ministry’s new rule banning the production, import and distribution of food containing trans fats will only temporarily affect consumer sentiment.
Idthipol Patimavirujh, managing director of Daily Foods Co, the maker of Palace sweetened condensed milk, said the company has yet to be affected by the new regulation.
“Our executives have talked closely with government officials on the trans fat issue over the past two years and were not surprised when the ministry announced the measure,” he said. “But the announcement may concern some consumers. The ministry should let companies that do not use trans fats promote that fact on their packaging to increase consumer confidence.”
But Mr Idthipol said the new rule may hit small manufacturers harder that make low-quality products at a cheap price.
The new regulation bans the production, importation and distribution of food containing trans fats and will become effective 180 days after its publication in the Royal Gazette on July 13.
The ministry cited scientific evidence that trans fatty acids from partially hydrogenated oils increase the risk of heart disease and stroke. Trans fats are also associated with a higher risk of developing type 2 diabetes.
Common foods that contain trans fats include cakes, pie sand cookies, margarine, crackers, microwave popcorn, cream-filled candies, doughnuts, breakfast sandwiches, fried fast foods and frozen pizza.
Mr Idthipol said the company will spend 100 million baht this year to promote its new flavours launched earlier this month. The company has hired Saksit “Tor” Vejsupaporn as its brand ambassador to attract young buyers.
The company plans to sell more products at convenience stores and appoint more distributors to sell its products across the country, particularly the HoReCa (hotel, restaurant and catering) segment.
Palace controls a 20% share of the condensed milk market. With the launch of the new flavours, the company aims to raise that ratio to 30% this year.
Sales of the Palace brand totalled 1.6 billion baht last year, up 30% from 2016. The company expects sales to grow by 30% to 2.08 billion baht this year.
Pinit Puapan, deputy chairman of The Thai Dairy Industry Co, which makes and distributes Mali sweetened condensed milk, said greater health concerns have changed consumer behaviour.
The company has launched fat-free Mali squeezable tube condensed milk, marketed as a consumer alternative. The plan is to spend 80-100 million baht to promote Mali condensed milk this year.
Thailand’s sweetened and unsweetened condensed milk market is worth 8-10 billion baht annually. Sweetened condensed milk accounts for 80%, while unsweetened accounts for the rest.
The company is confident that its fatfree Mali squeezable tube condensed milk will generate combined sales of 200 million baht in the next two years.
Mr Pinit said that after the launch several months back, the product has received a warm welcome from consumers.
“Domestic condensed milk makers have faced a tough time over the past 2-3 years because consumers have slowed down purchasing power, particularly for the low-end market upcountry,” he said.
The company expects sales of Mali to reach 4.3 billion baht, primarily boosted by HoReCa business, up from 3.3 billion baht last year.