Dutch Lady Milk Industries

Topics: Milk, Powdered milk, Dairy product Pages: 11 (3073 words) Published: October 9, 2010

[1.1] Background of the Company
After World War II, some local importers and wholesalers of Malaysia imported sweetened condensed milk in wholesale quantities from a large company in Holland. To market this milk, a Singapore based company named Friesland (Malaya) Pte Ltd was formed in 1954. One of the brands that this company started selling was called the Dutch Baby brand. In 1963, a sweetened condensed milk factory was commissioned in Petaling Jaya, and Pacific Milk Industries (Malaya) Sdn Bhd came into existence. It took the factory around two years to start its operations for manufacturing sweetened condensed milk. In 1968, Pacific Milk Industries was made to go public and be listed on the Stock Exchanges of Kuala Lumpur and Singapore. It became the first listed milk company of Malaysia. Then in 1975, the CEO of the company decided to change its name from Pacific Milk Industries Bhd to Dutch Baby Milk Industries Bhd to gain consumers’ attention towards the main product of the company – Dutch Baby Sweetened Condensed Milk. Later in 1984, the brand name was changed from Dutch Baby to Dutch Lady to position the product as though it was meant not only for babies but for adults as well. Dutch Lady Milk Industries Bhd has always had an innovative approach towards its product portfolio. The company comes up with a new type or new form of product every four or five years. Whenever an opportunity is seen in the market, the management creates a product diversification program under the supervision of the CEO. Before year 2003, the following diversification programs had been implemented by Dutch Lady. * In 1975, an Ultra Heat Treated Milk Plant was constructed, and locally packed Dutch Baby Modified Baby Food was introduced. * In 1979, a canned fruit juice was introduced and given the brand name of Joy. * In 1984, Sterilized Milk was introduced in plastic bottles. * In 1988, Dutch Lady Yoghurt and Growing Up Milk were launched.

[1.2] Main Activities
Dutch Lady today is ranked among the top three dairy producers in Malaysia, and is one of the nation’s most trusted brands in dairy products. Its product portfolio ranges from infant formula and milk to fruit juice and yoghurt drinks. Every new product is known to be backed up by extensive market and technological research at the local and international level. The parent company of Dutch Lady Malaysia is Royal Friesland Campina – a Dutch multinational company and one of the largest milk producing companies in the world. This holding company supports Dutch Lady in its innovative approach towards new product development and aids it in delivering high quality nutritious products to consumers. Dutch Lady was the first company in the world to produce milk powder specifically designed for children between one and three years of age. Dutch Lady uses local as well as imported ingredients in its products. It purchases local fresh milk from the Veterinary Services Department via the company’s Dairy Development Programme which is carried out in collaboration with the DVS along with the assistance of the Netherlands Embassy. The company practices standardized Quality Control and Quality Assurance strategies. Since 1995, the company has been accredited with ISO 9001 certification. In addition to this, all its plants are covered with HACCP (Hazard Analysis Critical Control Point) System. Furthermore, the internal environment of the organization is in line with ISO 14001 Environment Management System and OHSAS 18001 (Occupational Health Safety Assessment Series). All products are in the “halaal” range and can be consumed by Muslims. In the last fiscal year, the annual revenue of Dutch Lady was RM692 million. The factory, located in Petaling Jaya, currently employs 600 Malaysians. In certain products, such as UHT milk, Growing-up milk and Sterilized milk, Dutch Lady is the market leader in Malaysia.

[1.3] Product Portfolio
The current product portfolio of...
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