Nestle has had a fruitful third quarter as the company sees an increased turnover in Q3 driven by the success of new product launches, as well as the Nestlé ‘Lagi Sihat, Lagi Happy’ consumer campaign.
Nestlé registered an increased turnover of 5.3% to RM1.2 billion for its third quarter ended 30 September 2015 compared to the corresponding period last year, in spite of weak consumer sentiments. Alois Hofbauer, managing director, Nestlé (Malaysia) Berhad, said despite tough market conditions, Nestle’s domestic and export businesses saw substantial growth during the quarter under review.
“In the domestic market, our new product launches and our successful Nestlé ‘Lagi Sihat, Lagi Happy’ consumer campaign, along with other marketing and promotional activities, were core contributors in driving sales in spite of soft consumer sentiment,” he added. Hofbauer said by re-investing these savings into trade and consumer promotions, the Group was able to strengthen market position for our brands.
In a press statement, the company also added that new product innovations continue to be key business drivers, contributing to the overall turnover development. Key products recently launched are Milo Nutri G, Kit Kat Green Tea, Nescafe Mountain Wash, Maggi Letup range, as well as the latest additions to the Maggi Royale premium range, Sarawak Sambal Laksa and Johor Seafood Laksa.
These new product developments, coupled with consumer promotions, helped drive recovery in Q3 despite weak consumer sentiment, bringing the Group’s year-to-date Turnover to RM3.6 billion.
“Given the demanding economic climate of reduced consumer confidence and challenged disposable income levels, we have adopted a cautious approach for the short-term. However, we are optimistic on the middle to long-term growth in the country. Malaysia is one of the top five Nestlé markets in Asia, and is among the top 20 Nestlé markets in the world. We have great consumer base potential in the future,” said Hofbauer.
But the year was not always a smooth sailing one for the brand. Earlier this year, it faced a Milo powder scandal where the ministry seized RM250,000 worth of counterfeit Milo products being sold. After which, the company actively tied up with the government authorities in Malaysia, especially the Ministry of Domestic Trade, Co-operatives and Consumerism to curb counterfeit products being sold in the local market.
“Moving forward […]we will also continue to intensify our marketing investments and product innovation efforts, providing consumers with high quality, nutritious, great tasting products in line with our values as the leader in Nutrition, Health and Wellness,” said Hofbauer.