The Future of Food - Business Model Challenges

Thailand.bc@ipsos.com
THE FUTURE OF FOOD: BUSINESS MODEL CHALLENGES
COLIN KINGHORN, CHIEF OPERATING OFFICER, IPSOS BUSINESS CONSULTING
GORDON MILNE, MANAGING DIRECTOR – ASIA PACIFIC, IPSOS UU
25 JUNE 2014

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Better for the Planet
Rising population and greater social awareness will bring fundamental change – but when?

BUSINESS UNIT STRATEGY
COMPETITIVE INSIGHTS
GO-TO-MARKET INNOVATION SCOUTING PARTNER EVALUATION
SALES & MARKETING
OUR SOLUTIONS
FIND OUT MORE ABOUT IPSOS IN THAILAND visit us at www.ipsosconsulting.com

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Food in Modern Times
How Far Can Marketing Bring Your Company to Success?
New Business Climate and the 'Real Value' Offerings
Responding to Business Challenges
Global food consumption trends and implications
The quest for health and well-being
Implications for brand marketers
Content
The Future of Food

FOOD IN MODERN TIMES

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The Modern-Day Consumption of Food
Taste? Nutrient? Convenience?
Food in Modern Times

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Ingredient players need to be on top of the consumer trends to support the F&B brand owners need for competitive advantage
Demand for Food Solutions Over Time
CULTURAL, CATEGORY & CONSUMER TRENDS
Regular
Convenience
Value for Money
Health & Wellness
Premium
Natural
Functional
Ethical
implications for brand
Cost Optimization
New Product Development
Safety and Quality
Urbanization
Scandal of Melamine in dairy products
Obesity
Stroke
Beauty
Emerging class population
EVOLVEMENT OF F&B
Source: Ipsos Business Consulting

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Responding to Market Change
R&D SHOULD CONTINUE TO BE LED AT A GLOBAL LEVEL, BUT UNDERSTANDING
SPECIFIC CUSTOMER NEEDS IS CRUCIAL IF WE ARE TO UNDERSTAND
THE DISCREET NUANCES THAT CAN HELP SECURE SUCCESS
Product offering
A handful of direct customers, especially in the beverage market
Different lifestyles of end consumers in each nation
The demand for food solutions has evolved over time
•The top 10 companies account for approximately 40% of global beverage industry and have a significant global footprint
•Ingredients players need to work closely with these global companies to continue to meet their needs
•People are different! And those differences have implications on their eating habits
•Cultural diversity significantly shapes the choice of food and beverage in each market
•Sustained success in the business depends largely on anticipating the tastes and trends
•Ingredient players need to be on top of the consumer trends to support F&B brand owners need for competitive advantage

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Jerome
McCarthy's
1960 model
Right Product Offering, Right Strategies
The Marketing Mix
Classic Model
Today's Model
Product
Price
Place
Promotion
Product
Price
Place
Promotion
Physical
Facilities
Process
People
Further key considerations, especially for the food service sector:
•People - customer service orientation, employees, management, customer service
•Process - uniformity of food service offering, delivery, IT support, timeliness
•Physical Facilities - online experience, cloth, building, surrounding environment, temperature
Booms
and Bitner's
1981 model
Source: McCarthy, Jerome E.

HOW FAR CAN MARKETING BRING YOUR COMPANY TO SUCCESS?
A Case : Coca Cola

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A Case : Coca Cola – Advertising Strategies
Marketing and Advertising Strategies Over Time
Marketing to Success
•1886 "Drink Coca-Cola"
•The year Coca Cola was found
•1904 "Delicious and Refreshing"
•Marketing campaigns showing the happy beautiful women enjoying the refreshing new beverage made record growth and expansion
•1928 Brand Awareness Raising
•Coca-Cola appeared at the Olympics in Amsterdam, one of the first Olympic marketing campaigns
•Coca-Cola neon sign in Times Square, New York
•1971 "I'd like to buy the world a Coke"
•Campaign featuring people from various cultures, all of whom enjoying Coca-Cola
•1904 – present
•Use of marketing by spokesperson. Endorsement by numerous sports stars and celebrities

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The first Coca-Cola celebrity endorsement – Hilda Clark, a famous American model and actress
The first appearance of Coca-Cola at the Amsterdam Olympics in 1928

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The most recent Coca-Cola advertising campaign – FIFA World Cup 2014
The-go-global advertising campaign - I would like to buy the world a Coke in 1971

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How is Coca Cola doing now?

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•Coca Cola Life with Natural Sweetener 'Stevia'
–It was Initial launched in Argentina (along with Mexico, the U.S., Chile and Uruguay)
–The products will be launched on some European markets, including France by end 2014
–It is produced with stevia, the plant originated in Paraguay previously known to be used in fruit-flavored drinks and sugar as sweeteners
–It has less than half of the sugar and calories of classic Coke
and packaged in green label on plant bottle (100% recyclable)
–Coke life is marketed as the natural image of Coca Cola
to attract health-conscious customers
•Can this marketing campaign bring Coke to success?
–The product aims to drive the carbonated soft drinks market which is struggling over times due to more health-conscious consumers and obesity concern such as in US where two of every three adults, and one of every three children is obese
–Despite the tremendous growth in stevia usage in commercial products as alternative sweetener, Coca cola life has NOT been successful in terms of sale volume
Case# 1 – The GREEN Coke
Healthier Choice Offering
Sources : Siegel+Gale

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•The Ice-bottle Coke
–It is Initial launched in Colombia especially on a beach in a hot climate
–The bottle is made of silicone molds filled with micro-filtered water and wrapped with a branded elastic band to prevent your fingers stuck with the ice
–The design is marketed as eco friendly since it melts after the Coke is consumed and no need to recycle
–90% premium in price is added up as the cost is almost twice as much to produce than regular ones
–Very successful as beachside vendors have sold an average of 265 bottles per hour
–Customers are willing to pay a higher cost for the commodity of this refreshing packaging
–Despite the environmental-friendly concept, the bottles are not cost effective to produce as it requires extra energy to keep the bottles frozen during distribution
Case# 2 – The Ice Bottle
Innovation-led Brand Promotion
Source: Bloomberg BusinessWeek, Coca-Cola Colombia

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•Names printed onto Coke bottles/cans
–Thailand is the only Asian country to launch this campaign in September 2013 after Australia, UK, Italy, France and Brazil
–People's nicknames and their expressions are printed on 250 million cans and bottles of Coca-Cola for the “share a Coke” campaign in Thailand
–More than 80 nicknames and 10 expressions had been chosen by Coca Cola to print on its cans and bottles
–The campaign aimed at encouraging young Thais to express their feelings and connect with one another as the Thais are believed to be reserved about expressing how they feel about other people
–Coca Cola sales in October 2013 grew 24% compared to that of the same month in 2012
–169,000 Cans with specific name printed are sold within 1 month
Case# 3 – Share a Coke!
Symbolic Consumption
Source: The Nation, Coca-Cola Thailand

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Case# 3 – Share a Coke!
Symbolic Consumption
Source: The Nation, Coca-Cola Thailand
“feeling loved” ….. Sending Coke to me
After a huge success of “share a Coke campaign”, another recent Coca Cola marketing activity is to print your photo on the “FIFA World Cup" bottle has been launched.

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Summarizing the Marketing Success
Waves of Short-Term Boom
Coca Cola Life
•The product still cannot drive the market growth for Coke especially in the sutured markets
•Stevia cannot make the similar taste to the original Coke
•Health-conscious consumers still not perceive it as healthy products
Ice bottle Coke
•Coca cola used packaging innovation to boost the brand image
•The products are very successful at the points of sales at 265 bottles per hour sold on average in Colombia
•There are concerns about the hygiene issue and the long- term impact on sales when this innovation become old and no longer exciting
Share a Coke!
•The campaign generated 24% growth in month-on-month sales in Thailand
•Despite the excitement aspect, consumers received no real additional value from the products
•It is expected that this campaign will be a short-term hit only

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Can these campaigns sustain in the new business climate?

NEW BUSINESS CLIMATE AND THE 'REAL VALUE' OFFERING

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The Issue of the Sugar Content in Coke
An Interesting Discussion from BBC newsnight
The real value offering
The Issue of the Sugar Content in Coke Video
Click for the video
http://www.youtube.com/watch?v=2uf8iTpX28o&feature=youtu.be

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Eating well is No.1 approach to being healthy
However, the approaches vary by nationality, gender, and age
76%
84%
74%
Level of Health Concern
Majority of women who
are health conscious eat
well and also exercise
while men tend to eat
healthy food only
People age 18-44 tend
to exercise while people
over 45 years are more
concerned about eating
healthy food
For most age groups,
people who are health
conscious will eat well and
also exercise - apart from
men age between 25-44
years old who prefer to
exercise only
In general, majority of
women prefer to eat
healthy food compared to
majority of men who
exercise more
For most age groups, people who
want to be healthy will eat
healthy food and exercise.
However, those 18-24 and 55-64
only need to eat well to stay
healthy!
For residents who do only one
activity, we notice that men tend
to exercise while women mainly
eat healthy food
Source: Ipsos survey with 2,500 people in USA, UK and Thailand

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TOP CAUSES OF DEATH in the world
1)Ischemic Heart Disease 11.2%
2)Stroke 10.6%
3)Lower Respiratory Tract Infections 6.7%
4)Chronic Obstructive Lung Disease 5.8%
5)Diarrheal diseases 4.7%
6)HIV/AIDS 3.0%
7)Lung Cancer incl. Trachea and Bronchus 2.7%
8)Diabetes 2.6%
Demand for food solutions has evolved over time
A demanding lifestyle does not have to be unhealthy
Health Problems faced by Global Citizens
Spreading of major diseases to every corner of the world
Source: World Health Organization

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Facts of Major Diseases in Asia
Source: World Health Organization
HYPERTENSION
•High blood pressure is the leading causes of stroke and heart diseases, which are the top two causes of death in the world
•1 of 3 adults in South East Asian countries has hypertension
•Wrong eating habit is the most critical cause of hypertension
DIABETES in South East Asian Countries and India
2011
2030f
Regional Prevalence
8.3%
10.2%
Number of People with Diabetes
71.4 million
120.9 million
Diabetes and hypertension as the major threat among South East Asian countries

RESPONDING TO BUSINESS CHALLENGES

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•Thai people nowadays spend less time cooking for themselves due to the changing lifestyle
•For example, MK restaurants, a highly-recognized brand from Thailand
–80% market share of all sukiyaki-type restaurants in Thailand
–3 million people eat at MK everyday in Thailand
–targets to be a "Regional Brand" in Asia Pacific in the next 10 years
–359 branches in Thailand; 33 in Japan; and 1 in Vietnam, Indonesia, and Singapore
•MK's key success factors:
–Fresh ingredients for customers managed by
efficient logistic and quality control systems
–Value-based pricing that suits the qualities
of food
–Position as a healthy restaurant to attract
general and health-conscious consumers
Example# 1 – Eating Out Consumers
How people seek restaurants that suit their needs
Responding to challenges
Source: Stock Exchange of Thailand, Enterprise Architerture,
Modeling-Thammasat University, Ipsos' analysis

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How MK provides 'the Real Value'
Sufficient nutrition information
•Nutrition and energy provided in each meal
•Total ingredients provided to customers
•Strengthening the healthy food concept
Fresh and good quality ingredients
•Deliver vegetable daily from supplier as they lose their freshness in one day
•Efficient storage system with -18 c frozen storage in wagons
•Efficient strategic DC location with each branch
Brand Target
- Family consumers
- Health-conscious (fresh ingredient loving) consumers
•Energy
•Protein
•Fat
•Carbohydrate
Eating Experience
•Customized self-cooked food experience
•Sharing of happy time with group-eating activities
•Waiters and waitresses dance actively at certain times

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•Betagro launched S-Pure fresh food to target premium consumers – high income middle class as well as Japanese expats in Greater Bangkok and other tourism provincial hubs
–15% annual sales increase or approximately THB 500 million since 2007
–80% market share of fresh food premium products in 2012
–80% of sales comes from pork and chicken, while eggs are expected to be the growing product sector
•Betagro's key success factors:
–Effective communication to health conscious consumers
–Convincing packaging that communicates the benefits of consuming healthy products
–Wide distribution channels through up scale supermarkets
Example# 2 – Packaged Food
Betagro’s S-Pure fresh food
Source: Positioning Magazine, Prachachat, BrandAge, Ipsos’ analysis
“Our chicken is healthy, eating sufficient cereal and having no growth substances”
“There is no chemical residue which is the major cause of drug resistance (in humans)”

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Betagro's frequent TV commercial
Source: Positioning Magazine, BrandAge, Ipsos’ analysis
TV commercials that display the food safety concept with a celebrity that represents high-income middle class customers

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Food Value Chain – Different Origins
Source: Stock Exchange of Thailand, Enterprise Architerture,
Modeling-Thammasat University, Ipsos' analysis
Battery Hens
Barn Hens
Free Range Hens

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Current Food Service Providers
Health
Taste
BH
EH
BT
ET
Budget Concern
Exclusive Experience

33
Predicting the Future of Food Service
Health
Taste
Budget Concern
BH
EH
BT
ET

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Example# 2 – Eating at Home Consumers
How people around the world define HEALTH and WELLNESS?
http://www.youtube.com/watch?v=0WPB6myXsXI
Global Health Video
Click for the video

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Understanding local needs is key to success
United States : The Fast-Food Nation
•Today's Culture – Speed and Convenience
–Americans are in the midst of a “lifestyle disease” epidemic
•Lifestyle of Americans
–Fast food consumption culture i.e. poor nutrition
–Rising rates of physical inactivity as everything is convenient
–Frequent alcohol consumption
–Increased stress at work from ever increasing market competition
Europe : The Health Conscious Region
•Today's Culture – Natural and Organic Lover
–Nature is best. Let's go back to basics!
•Lifestyle of Europeans
–Highest level of literacy translating to high concern for health and wellness
–Willingness to pay more for healthier products
–Culture that values regular exercise, fitness, and sports
–Life under strict health-related law, rules, and regulations
Asia : The Beauty Products Craze
•Today's Culture – Consumption for Beauty
–"Beauty, beauty and beauty" and "Beauty Comes From Within"
•Lifestyle of Asians
–Nutricosmetics and functional foods are driven by Asia Pacific, led by Japan and China
–Urban consumers believe in the efficacy of nutricosmetics (USD 3 billion in sales)
–Low/zero calorie product boom

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Current Food Manufacturers
Health
Taste
Budget Concern
BH
EH
BT
ET

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Predicting the Future of Food Manufacturing
Health
Taste
Budget Concern
BH
EH
BT
ET

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•From the major manufacturer of chocolate and ice-cream that could cause obesity and diabetes, Nestlé also aims to build a business on foods that treat those conditions
•The goal is now is to make the “food as medicine”, the food that prevents or cure the major chronic diseases
•Food companies rely on the fact that producing medical food is cheaper than bringing in new pharmaceuticals. Therefore, its next mission is to convince doctors, nutritionists, and society through facts
•Nestle has acquired a number of nutritional products, and pharmaceutical companies to expand its product line to target more healthy products
•Receptiveness in the medical food is on the rise and is the top factor to win the healthy food segment and the food market in general
Example# 3 – Functional Food
A new focus of Nestlé
Source: Bloomberg, Ipsos Analysis
“Boost shakes” helping manage blood glucose level
“Peptamen” powdered drink for critically ill obese patients
“Nestle image now is more than the powdered hot chocolate drinks manufacturer as it did two generations ago. Now the company wants to be known as the health science foundation with long-range targets that include becoming a leader in medical food” Said Nestle Head of Health Science Unit

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Interesting Facts
•The total value of the food service market in Southeast Asia was valued at USD 21 bn
•There are over 1.3 million food outlets across Southeast Asia
•Tourism industry and increase in earning of urban workers are the key driver of the growth in the food service sector in ASEAN
•500 million people dine out at least once a year
•Over 40% of ASEAN population are Muslim, making one of the biggest halal food market in the world
Increased Competition in ASEAN
Ongoing presence of food service franchise brands
Source: United Nation, Unilever Foodsolutions, Euromonitors

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•ASEAN people especially in the urban region are willing to pay more for the better quality to suit with the value for money due to an increase in revenue and countries’ urbanization rate1
Food Consumption Trends in ASEAN
Source: AseanAEC, WHO
19% growth rate of bourgeois consumption compared to 0.6% of developed countries
•ASEAN consumers are more health and information conscious especially in the country with a high rate of aging population such as Singapore and Thailand making an organic, functional food and healthy restaurants are more popular
•Full service restaurants, especially the strong brands, will continue to receive great attention from the public affected as a result of the eating out culture in many countries
•ASEAN consumers like to try various kinds of foods and beverages from different countries but are familiar with the similar taste of their home dishes
ASEAN Food consumption trend changes to the more quality and healthy segments

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Food Consumption Trends in ASEAN
Source: United Nation, Unilever Foodsolutions, Euromonitors
Past 20 Years
Next 20 Years
The “still” dominance of global major food brand
Emergence of microwave and frozen food
Expansion of franchise food brands in emerging markets
Prevalence of western disease to emerging markets
Present (2014)
Well-informed food packaging as consumers want more information
Government to focus on food regulation, health products and ethical issues of food production
real value offering proposed from manufacturing companies
Minimal land available for cultivation
Rising prices in agricultural commodities
The future of food

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Technology
Health & Wellness
Experimentation

A lot is changing around the world, in our homes
Changes in Home Cooking
Increasing % of working women
Smaller, urban families
Blending seamless time zones
Socialization of cooking
Singles, boomerang kids

Needs around meal slots
BREAKFAST
Divestment of food
Seek palate formats (i.e. hot/cold/ dairy/etc)
On the go, converged (bars, liquids, 3-in-1s , etc)
MODULAR
DINNER
Globalization of food
Ethnic menus
‘Low’ Tea
Snacky
EXPERIMENTATION
LUNCH The core meal – still governed by traditional/ethnic moorings
In home: Seeking the ‘complete’ meal option - likely to also be the main cooking occasion
Out of home: Mobile substitutes that ‘complete’ the meal
e.g. Sandwich fillings
Implications: different food needs by meal structure
Greater scope to get into breakfast/dinner space vs lunch space for cooking
With internationalization of time zones and new lifestyles, different food options may emerge

POWER BREAKFAST
Propositions of power and energy added to convenient formats for new lifestyle

CONVERGENCE
Offering interesting combinations of nutrients, formats and tastes for breakfast

MASHUP
More frequent, smaller meals
A quick afternoon pick-me-up meal

DISTRACTED DINING
Meals for singles, eat-alone’s

GLOBAL FOOD
More international cuisines, mix n match with palates

FINGER FOOD
Bite size, handheld, on the go, frequent

New sources, new role models
Loss of tradition and traditional sources
Seek authenticity, traditional recipes
Look for same output with lesser effort, time
Return to cooking from scratch in some societies
Singles’ households with specific food needs
New sources for home cooking – from ‘people like me/my mom’
Social cooking – procuring through social networks
Hobby cooking
Engagement of other family members in cooking – male, kids …
Implications: new role models, new sources for credibility, new food offerings, new target groups

GENERATIONAL COOKING
The rise of millenials in home cooking

FOOD PORN INDEX
Interactive site tracks #foodporn mentions in real- time
Source: Trendwatching.com

Demands of experimentation, engagement
Working, less time, multiple roles
Less knowledge, fewer references
Health, safety pressures and challenges
New demands of ‘good looking’ food
Emotions around cooking: anxiety, apathy, boredom, lethargy
The new housewife

CHEERIOS
Cereal brand's campaign helps families connect at breakfast

HUMANIZING COOKING
Taking the pressure off perfect cooking, sharing fails
"I wanted to make the really cute deviled eggs that looked like chicks for Easter. I realized quickly it wasn't as easy as it looked. Trying to get the yoke out of the small opening mostly meant that the white split. Or I would try to slit the top of the egg off only to find the yoke right there or at the other end. There was no consistency where the yoke was as evidenced by the odd shaped egg chicks in the picture."

New needs around food
Special food
Super food
Fresh food
‘Clean’ food
‘Clean’ cooking
Gorgeous food
Niche foods
Diet foods (gluten free, vegan, etc)
Diabetic
Vegetarian
Organics
Unique nutrients
Packed with minerals, vitamins
Anti oxidants
Collagen
Rich
New processes and sources for freshness in food
Food clean of ‘bad’ elements like calories, cholesterol, fat, etc
New, healthier cooking processes that preserve inherent goodness of foods
Good looking food, packaging

SUPER FOODS
Power packed with nutrients, rich in minerals, calcium, vitamins ….
Maple Water
Greek Yogurt
Freekeh and Teff Grains
Coconut Oil
Cauliflower
Kale

FARM FRESH
Vending machine sells a range of healthy, locally sourced fresh foods

FRESH MONITOR
Color-changing labels monitor food freshness

GROW FRESH
Aquaponic cabinet allows homeowners to grow fresh food from their kitchen

FRESH LABELS
Increasing need for transparency in food labels indicating quality and freshness

‘CLEAN’ COOKING
Sous vide machine can be programmed remotely

‘CLEAN’ VICE
Fast-food chain's menu features ‘healthier’ fries

’CLEAN’ VICE
Ice cream brand unveils vegetable-flavored desserts

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70
In the US, two of every three adults, and one of every three children is obese. In Mexico, diabetes kills 70,000 people annually. Western diets—particularly processed food, artificial ingredients and sodas—are bearing most of the blame.
In an effort to reverse this trend, health-conscious customers are drinking less and less sugary, carbonated sodas that clock in at about 250 calories per 600mL bottle. New York City Mayor Michael Bloomberg has even tried to ban the bucket-sized soda portions.
While Coke has attempted to address diet and obesity issues through its communications to customers via informative videos on health like this one, they are often met by a mocking parody. When it comes to health, soda continues to be the bad guy. So how do soda brands remain successful, when their very foundation is under fire and sales are steadily plummeting?
Enter the new Coca-Cola Life, a new soda with only 108 calories per bottle that uses stevia as a sugar substitute. With less than half the calories of classic Coke, Coca-Cola Life is an appealing option for those seeking a healthier alternative. Promoted as “green” and “natural,” the beverage is sold in a recyclable PlantBottle, made from 30% plant-based materials. The initial launch occurred only in Argentina—no surprise, as the country is currently a top consumer of sodas (along with Mexico, the U.S., Chile and Uruguay).
Branding reinforces the idea that the new beverage is “natural,” a theme now ever-present in the food and beverage industry in an attempt to attract health-conscious customers. The traditional red on the Coke label is replaced by an avocado- green hue, and images are treated with a natural, sepia tone. Advertisements depict blissful consumers in sunlit fields next to antique wooden crates filled with bottles of the new beverage—perhaps a nod to earlier times, before soda was accused as being one of the leading factors of obesity. Even the name Coca-Cola Life suggests that this new product is a healthier, more spirited choice when compared to full-calorie sodas.
Coke is not the first soda company to enter this territory. Dr. Pepper TEN has had some success in the US, and Pepsi Next was introduced in Australia in 2004. These strategic product decisions—especially Coke’s—signal that consumer demands for healthier, more sustainable options have been heard, and brands will have to respond if they want remain relevant.
How have other food and beverage brands reacted to this health trend? Who has adapted successfully, and do you think will have trouble? Can you think of any new brands that have emerged as a result of this trend?
Appendix I
Coca-Cola Life: A healthy brand extension, but will it succeed?

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During its ice bottle giveaway in Colombia, Coca-Cola (KO) gave away an average of 265 frozen bottles an hour, the company says. Here’s how they did it: “Micro-filtered water” is poured into silicone molds, then frozen to -13°F. The ice bottles are shipped empty; servers fill them with soda right before handing them over. (So in fact it’s more like a bottle-shaped glass.) To prevent your delicate fingers from getting stuck to the ice, each bottle is wrapped with a branded elastic band, which Coca-Cola hopes you’ll wear as a bracelet after you’re done with your drink. That’s one way for the company to make the most of this marketing effort, as the ice bottles cost almost twice as much to produce than regular ones. “This is not an industrial package,” says spokesman Marco Llinas, to our disappointment (but not our surprise). The company is promoting the bottles as easier on the environment (less waste), though it’s worth noting that they do require more refrigeration. Llinas says he is not aware of plans to offer it elsewhere
Appendix II
Ice Bottled Coke

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Coca Cola launches ‘Be Fizzy, Be Bold, Share a Coke’ campaign in Thailand. This is a really interesting and fun campaign, which aims to bring Thai people closer and be able to express themselves more
Nick names of people and Thai expressions are printed on 250 million cans and bottles of Coca Cola. The company wants Thai people to be able to connect more with Coke as a brand. It also wants to improve its marketing and sales in the country.
More than 80 nicknames and 10 expressions, such as “Kon Naa-rak”, “Kon Jing-jai”, “Kon Pi-sed”, “Kon Suay”, and “Kon Lor”, have been chosen by Coca-Cola to print on its cans and bottles. With an investment of Bt140 million, the campaign will run until the end of the year.
“We know that Thai people are positive and happy … But they are also very reserved about expressing how they feel about other people, especially when those feelings are mixed with special emotions or are particularly complimentary.
We want to make it easier for people to spread positive feelings and goodwill towards those they love or admire, because that is one of Coca-Cola’s most special brand attributes,” said Konstantinos Delialis, marketing director of Coca-Cola (Thailand), in his first interview with local media.
Coca-Cola (Thailand) posted Bt30 billion in sales last year. According to Nielsen, Coca-Cola sales grew by 21 per cent year on year as of June.
Coca-Cola (Thailand) last month introduced special-edition cans with the word “Mum” on them to mark Mother’s Day.
The campaign received strongly positive consumer response, with more than 5 million cans sold.
Delialis said Coca-Cola operated in 200 markets around the world and each market learned from the others. Originated in Australia, the “Share a Coke” campaign is now in 50 markets around the world. However, Thailand is the first country in Asia with the personal-nicknames campaign.
The ‘Share a Coke’ campaign has been a phenomenal success in Australia, the UK, Italy, France, Brazil, Austria, Germany, Greece and Israel too,” he said.
Appendix III
Share a Coke Campaign

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Nestlé Health Science aims to pioneer a new industry between the traditional nutrition and pharmaceutical industries through the development of science-based personalized nutritional solutions and shaping a new approach to disease prevention and management.
Acquisitions
Pamlab: Acquired in 2012, specialises in medical food products for use under medical supervision in the nutritional management of patients with mild cognitive impairment, depression and diabetic peripheral neuropathy. Read more:
New US acquisition for Nestlé Health Science will strengthen Brain Health and Metabolic Health portfolios with new medical foods
Prometheus Laboratories: Acquired in 2011, specialises in diagnostics and licensed speciality pharmaceuticals in gastroenterology (GI) and oncology. Read more:
CM&D Pharma: Acquired in 2011, specialises in the development of products for patients with chronic conditions like chronic kidney disease and gastrointestinal.
Vitaflo: Acquired in 2010, develops and markets clinical nutritional solutions for infants, children and adults with genetic disorders that affect how food is processed by the body.
Nutrition Science Partners Limited (NSP): A 50/50 joint venture formed between Nestlé Health Science and the pharmaceutical and healthcare group Chi-Med in 2012. NSP focuses on gastrointestinal health and may in the future expand into the metabolic disease and brain health areas.
New partnership gives Nestlé Health Science access to one of the world’s leading Traditional Chinese Medicine libraries
Accera: In which Nestlé Health Science acquired a minority stake in 2012, specialises in neurodegenerative disorders, like Alzheimer’s Disease. Nestlé Health Science develops brain health portfolio with new investment
Vital Foods: In which Nestlé Health Science acquired a minority stake in 2011, is active in the development of kiwifruit- based solutions for gastrointestinal conditions.
Appendix II
Nestle strategic move of expanding into medical food

The Future of Food - Business Model Challenges

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