Alaska boosts sachet marketing

CEBU, Philippines - Anticipating the effects of the global financial crunch that may affect the sales performance of its products, Alaska Milk Corporation (AMC) intensifies the introduction of sachet packages to the Filipino market.

“We are investing [heavily] to intensify our brand through innovation, product development, and introduction of smaller packs,” said AMC vice president for marketing Ma. Belen M. Fernando.

AMC, the maker of legendary culinary milk brands in the Philippines, Alaska, Carnation, Alpine, Liberty and Milkmaid is not resting its 80 percent share in the Philippine market in this category. In fact, it is spending more on marketing efforts to sustain its position, she said.

 According to Fernando, the company’s growth driver this year is the sachet market, or the smaller-pack packages of its broad product line, including the ready-to-drink items, and cereals.

Also, AMC has created a special culinary milk brand line to fully penetrate the lower mainstream market with the introduction of Alaska-Evaporada and Alaska-condensada, as well as Alaska-crema.

Although the company posted a doubled digit growth last year and in the first four months of 2009, Fernando said AMC is not discounting the probable effects of the global recession in the Philippines.

“A lot of external factors will affect us, the US turmoil may affect the purchasing power of lot of Filipinos, and we are bracing for this,” she said in an interview with The Freeman.

While Alaska has become a household name for Filipino families, which has been in the market since 1972, Fernando said it has to sustain its hold in the marketplace specifically that more products from other countries have penetrated the Philippine market.

Heavy marketing blitz to sustain its brand loyalty is being held all-year-round in the different parts of the country, especially in the provincial areas, Fernando said.

Recently, AMC has sponsored an Alaska Power Camp in Cebu, as the company believes that sports play an important role in instilling the value of discipline, hard work, team work and determination among youth.

Fernando said the company will be introducing more events this summer to take advantage of this peak season for its culinary milk products that are being used in “summer refreshments” ingredients such as Halo-Halo, Shakes, scramble, and other desserts.

In 2007, AMC owned by the Uytengsu family acquired some brands of its rival company Nestlè Corporation. It recently introduced its health-drink products—Alaska Yamoo, Alaska Choco, and Alaska Yogurt Drink.

The Company's principal activity is manufacturing, distributing and selling liquid, powdered and Ultra-Heat Treated milk products under the Alaska brand. It has three principal line of business, Liquid Canned Milk (evaporated and sweetened condensed milk), Powdered Filled Milk and Ultra-Heat Treated/Ready-to-Drink Milk (fresh, low-fat and chocolate-flavored).