MARKET
Milk powder has enjoyed widespread acceptance as being food for young children. It has disassociated itself from controversy surrounding the milk category – a controversy that once revolved around the infant formula, multinational corporations and breast feeding. Particularly in developing countries, preserving milk and maintaining purity has always been a challenge, since fresh milk requires refrigeration. Concern about food and beverage marketing, specifically issues concerning their sale for consumption by children, has added a new dimension to the ongoing debate.
Into this market was born Lakspray, a name which is synonymous with a quality local product, in spite of its Australian and New Zealand origins. Its local marketing positioning was no accident – Lakspray’s original parent was the National Milk Board, a state-regulated organisation; and it was later marketed by the Co-operative Wholesale Establishment (CWE).
Having been extremely active in the milk-food market for almost 40 years, Lakspray is the only local brand that competes with international milk foods in Sri Lanka. It is now second only to Anchor milk in terms of sales volumes, having relinquished its leadership position not long ago.
Although Lakspray is perceived as a local brand, the milk powder is supplied by international sources that meet stringent quality standards. Much like how McDonald’s is a truly American product and has its roots strongly embedded in its culture, so too is Lakspray – a local brand that has been embraced by the Sri Lankan masses.
Trusted for many years, it is relied upon by many families to provide basic nutrition to their children – and indeed, Lakspray is used by the entire family for that old-time favourite cup of tea.
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ACHIEVEMENTS
Much to its credit, Lakspray has accumulated a number of internationally recognised awards that speak volumes for its commitment to achieving excellence and quality. Lakspray has achieved the internationally recognised ISO 9001:2000 standard in recognition of its outstanding quality. This was an achievement not only because the ISO standard is perceived as being essential on a global scale, but because it was granted to Lakspray long before any of its competitors.
At the annual Sri Lanka Institute of Marketing (SLIM) awards, Lakspray won Gold for its trim sub-segment brand that caters to weight-conscious women and those who pursue a healthy lifestyle. Besides winning numerous awards for its annual reports, Lakspray has also achieved Superbrand status – which truly makes it a recognised product at a global level. This is a testament to the commitment the brand has towards maintaining high quality standards.
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HISTORY
Lakspray is marketed by Lanka Milk Foods, established in 1981 to packet and distribute imported milk powder in Sri Lanka. Lanka Milk Foods was established in 1983 as a public quoted company with a major shareholding by the state sector. Subsequently, in 1991, the Stassen Group took over controlling interest in the company. But Lakspray has been in existence for close upon 40 years since its initial launch in 1969 by the National Milk Board.
The Stassen Group, on the other hand, is one of the largest conglomerates in Sri Lanka. It is, in fact, a major exporter of Ceylon tea and is extensively involved in tourism, financial services, the plantations sector, power and energy projects, and manufacturing.
Lakspray’s quality-specification system is governed by the British Standard Institute (BSI), the American Dry Milk Institute (ADMI) and the International Dairy Federation (IDF). Lakspray milk is supplied from New Zealand and Australia, where state-of-the-art technology is used to produce milk powder in modern factories. This multi-sourcing policy ensures that local consumers enjoy pure, fresh milk throughout the year. Hence, the hallmark of Lakspray is – and will always be – quality par excellence.
Lanka Milk Foods has the largest packing plant in South-East Asia, with a capacity of 48,000 metric tonnes per year. The company is quoted on the Colombo Stock Exchange and has a share capital of Rs. 300 million. Lanka Milk Foods produces an annual turnover of around Rs. 2 billion. In its first eleven years since privatisation in 1991, the company paid out as much as 122% of the initial share value by way of dividends to shareholders and almost Rs. 440 million to the government in the form of taxation.
The company also owns two farms in the vicinity of Nuwara Eliya, known as the Ambewela Farm and the New Zealand Farm. Set amongst lush, green hills in a pristine environment in close proximity to Nuwara Eliya, the two farms boast the best of everything – from pedigree cows to lush, green fields where cattle graze freely – thus producing quality milk that meets international standards.
The Ambewela Farm has pure-bred Ayrshire cattle, while the New Zealand Farm has pure-bred Friesian cattle. Both farms produce over 6,000 litres of fresh milk per day.
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PRODUCT
Lakspray is a Full Cream Milk Powder (FCMP) product with a 26% fat content, sold in packages ranging from the largest one-kilogramme pack to 400 grammes, 250 grammes and 100 grammes, and the smallest 50 gramme pack. It is produced at one of the most sophisticated milk powder packing factories in Asia, where the highest quality standards and hygiene are maintained.
Since new scientific evidence points to milk as being the best source of calcium in the human diet, Lakspray is marketed as a product that promotes optimum bone density and builds resistance to a number of serious health problems which may occur later in life. There is strong awareness in the country about potential health risks of low-calcium diets and osteoporosis, colon cancer, high blood pressure and cardiovascular diseases.
In keeping with its philosophy of offering the best to the consumer, Lakspray comes in FCMP and skimmed-milk powder varieties. A certain percentage of the population finds that the consumption of milk in any form exacerbates a phlegm condition. This condition has its roots in the genetic make up of the immune system and the natural composition of milk, and is common to all brands of milk. Thanks to a supply of top-quality milk from sources in New Zealand and Australia, Lakspray does not contain any additives or preservatives that may disrupt the natural formula of cow’s milk. Cow’s milk is first spray-dried, then subjected to high-tech quality-control processes twice over. These processes adhere to the strictest international regulations and thus ensure absolute quality. In a nutshell, Lakspray produces fresh, quality cow’s milk in a pack.
In a day and age when the medical profession often prescribes low-fat diets to health-conscious people, Lakspray trim – which contains less than 1% fat content – is an ideal companion: it provides the body with its daily nutrients, taking into account the fact that a healthy diet and regular exercise are the secrets to a healthy life.
Lakspray has a sophisticated and well-entrenched distribution network covering 80,000 outlets in urban and rural areas ranging from institutions to schools. The product is available at CWE and co-operative outlets, at reputable dealers and leading supermarkets in the country.
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RECENT DEVELOPMENT
Achieving the status of a Superbrand speaks volumes for Lakspray’s commitment towards excellence and quality. With a state-of-the-art milk powder packaging complex that rivals any other in Asia, the Lakspray brand does not compromise on quality. And given its strong code of ethics, Lakspray believes in giving the best to its consumers – particularly since the role it plays is paramount to mothers who care for their children. With this in mind, Lakspray’s Superbrand status is a deserving tribute – the brand will now be globally recognised for its local impact within a market where the competition is from international brands.
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PROMOTION
While there has been no dramatic shift in strategy throughout its four-decade presence in Sri Lanka, the brand has been actively targeted at the mother, since she is the chief decision-maker when it comes to issues regarding family nutrition.
Lakspray has pursued a strategy of connecting with its audience at a grass-root level. Its down-to-earth communications, catchy jingles and consumer involvement have tapped into consumers’ minds, thereby forging an all-important link with end-users.
As for media activity, Lakspray was the first to introduce innovative promotions such as the scratch-and-win campaign – a first for a consumer brand. Lakspray has also done its fair share when it comes to social responsibility, actively sponsoring school sporting events by offering free milk and supporting blood-donation campaigns. Lakspray also participates in local and cultural events such as Vesak dansalas – 40,000 cups of milk were served to people in keeping with the traditions of Vesak, in May 2006.
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BRAND VALUES
Lakspray has, indeed, enhanced its brand value through the years. While it started out strongly as a product that literally feeds the nation, Lakspray is today trusted by people to provide their families with basic nutrition. The brand has, in other words, been personified as a proverbial mother who cares for the nation at large. It is also very much a favourite in the marketplace, because it offers undeniable value for money.
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THINGS YOU DONT KNOW ABOUT LAKSPRAY
♥ The brand has been in existence for almost 40 years.
♥ Lanka Milk Foods boasts the largest packing plant in South-East Asia.
♥ Two company-owned farms in Nuwara Eliya produce in excess of 6,000 litres of fresh milk each day.
♥ Lakspray is distributed through some 80,000 outlets islandwide.
♥ While some are under the impression that Lakspray is produced from local milk, the truth is that its contents originate in New Zealand and Australia.
♥ Lakspray is the only local milk food competing with international brands in Sri Lanka.
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www.lankamilkfoods.com
