First of foremost, according to the news, Nestle Malaysia faced a critical issue in the beginning of year 2018, when a statement regarding its MILO product having false marketing went viral and caught a significant amount of attentions from many consumers. The claim was about the MILO brand product which is made up of 40 % sugar despite Nestle marketed the products as healthy one. However, Othman Yusoff, Head of Halal Affairs of Nestle Malaysia defended the products and explained to the consumers that the sugar percentage was only in raw form before mixing and diluting it with hot water which was the recommended serving method while half of the sugar contents are naturally from milk and malt which both are excellent sources of vitamins and minerals.
Apart from that, a notable issue that struck Nestle Malaysia which was about the content of Maggi noodles in year 2017, where the products were rumoured to be withdrawn from the markets due to containing harmful lead which was exceeding the allowed level. This claim went viral on social media and caused Nestle Malaysia’s reputation dropped. However, the Health Ministry stepped in and assured the public that Maggi noodles in the country are safe for consumption, although the claim was true India but not in Malaysia. Dr Noor Hisham, the Health Minister of Malaysia further his explanation to ensure public can rest assured by stating that the instant noodles in Malaysia were not imported from India.
Another noteworthy issue of Nestle Malaysia was when the company faced counterfeit products of one of its famous brands, MILO in year 2015. Fortunately, the counterfeit products did not cause any immerse harms to both consumers and the company’s reputation since the fake MILO products were easy to differentiate from the genuine MILO products as the counterfeit products had strong cocoa and slightly burnt taste whereas the genuine products had a malty and creamy rich chocolate taste along with a successful raid that seized RM 250,000 worth of the fake products.
On the contrary, Nestlé Malaysia also has its proud moment. It is exemplified when Nestle Malaysia won ‘Company of the Year Award’ at The Edge Billion Ringgit Club 2016 gala dinner. This award signifies that the company was recognised for its strong, sustained and consistent financial performance as well as its Creating Shared Value efforts. It is also wise to note that Nestle Malaysia was one of the companies that had best performance in terms of highest profit growth, return on equity and total shareholder returns over three years.
Additionally, Nestle Malaysia also win Putra Brand Awards, commonly known as the People’s Choice Awards that grands recognition to Malaysia’s most popular brands across various industry categories based on consumer preference. In year 2017, six Nestle Malaysia brands took home trophies from three different categories including Beverage ( Non-alcoholic ), Beverage ( Dairy ) and Foodstuff. These brands are MILO, NESCAFÉ, MAGGI, KITKAT, Nestle Breakfast Cereals and Nestle OMEGA PLUS.
In addition, Nestle Malaysia won numerous other awards and medals. For instance, Nestle Malaysia was awarded the 3G Environmental Responsibility Award at the recent 3rd Global Gool Governance Award by Cambridge IFA for its outstanding efforts towards incorporating environmental protection within the way the business is done. In conjunction with World Halal Conference 2018, Nestle Malaysia also won the “Successful International Halal Company” recognition at the Halal Industry Development Corporation ( HDC ) Awards as a testament of the world-class Halal expertise Nestle Malaysia has.
Lastly, not to mention, Nestle Malaysia has been recognised as one of the top three Most Attractive Employers in Malaysia at the Randstad Employer Brand Awards 2018, which the award is presented based on a survey participated by over 3,000 Malaysians. Nestle Malaysia received the Gold award for the Food & Consumer Packaged Goods category at the 2017 Annual Report Competition ( ARC ) International Awards. Furthermore, Nestle Malaysia bagged the Company of the Year title, under the Food & Beverage category, at the CSR Malaysia Awards 2017.
Dutch Lady faced its biggest issue early in the year 2018 after its long establishment is a close replica of its products that resulted in babies that consumed the products fell ill. According to the news, the problem was found when a child broke out in rashes, had diarrhoea and fever after consuming promotional samples of the Dutch Lady Curious ( 900g ) milk formula. Another news source stated that Tarang Gupta, Managing Director of Dutch Lady Malaysia confirmed that the specific batch number of 1023C7WA where the promotional samples were located was found having no issue at all after thorough investigation with laboratory testing. Later, it was identified as the fake copy-cat products were released into the markets that caused all these problems.
Similarly, another dire issue that Dutch Lady faced was the domestic market had been challenging for past few months in the beginning of year 2017. Dutch Lady Malaysia foresees the domestic market to remain challenging against the backdrop of weak consumer sentiment, higher material prices and soft Malaysian ringgit. With Dutch Lady’s net profit slipped nearly 20% to RM 32.58 million or 50.90 sen per share for the third quarter which ended at Sept 30, 2017 from RM 40.66 million or 63.5 sen per share in the previous corresponding quarter. However, Dutch Lady has initiated continuous marketing campaigns to leverage the strength of the Dutch Lady and Friso brands to protect and expand its market share with quality and nutritious product offerings.
On the other hand, Dutch Lady also received positive news. One example is Dutch Lady Malaysia hit its goal, the RM 1 billion target in revenue with despite ongoing economic slowdown and challenges in year 2014. The revenue was higher at RM 980.1 million in year 2013 to RM 1,000.2 million in year 2014. The goal is achieved due to successful market leadership in Formulated Milk Powder for Children as well as being No.1 brand in Ready-To-Drink milk category.
Dutch Lady Malaysia often shows the support for the society itself as seen in its efforts in setting up a platform for working mothers and their families to achieve work-life balance. In a media release, Dutch Lady Malaysia introduced the Malaysian Working Mothers Forum ( MWMF ) in year 2011, a community platform to help manage work, motherhood and wifely duties in tandem. In conjunction, the platform is also the best way to assist in reducing the mothers’ concerns and worries when it comes to juggling both work and home commitments. This displays that Dutch Lady Malaysia cares about the society and its consumers.
Another positive news for Dutch Lady Malaysia is when the company won gold at Putra Brand Awards for two consecutive years. The award is endorsed by Malaysia External Trade Development Corporation ( MATRADE ), in addition to being supported by the Branding Association of Malaysia ( BAM ), Malaysian Advertisers Association ( MAA ) and Media Specialists Association ( MSA ). Moreover, this award is viewed as synonymous to the people’s choice award as the jury is made up of a panel of 6,000 Malaysian consumers. As such, Dutch Lady is considered as a brand that is well accepted by the consumers throughout Malaysia.
Next, Dutch Lady Malaysia also picked up The Edge Billion Ringgit Club ( BRC )’s Company of the Year for 2014 Award. The award was hard to obtain as it was consisted of a total of 178 companies qualified as BRC members with total revenue reached RM 701.2 billion. Hence, Dutch Lady Malaysia had proved its goodness to the society in the aspect of addressing the needs of the community at large with its corporate social responsibility programmes, to be bestowed such prestigious award.
Dutch Lady Malaysia also won many other awards and titles. For instance, the Contribution to Organisation Award 2014 won by Dutch Lady Milk Industries Berhad which recognised the company for their commitment to nurturing talent and developing global leaders in year 2014. Another example is when the company was named the Best Business Sustainability by a Multinational Company ( MNC ) at the Malaysian Dutch Business Council Sustainability Awards ( MSA ) 2014 for Dutch Lady Malaysia’s efforts in reducing its electricity usage within the company as well as establishing a systemic procedure for the disposal unwanted products and waste products.