Farm Fresh is the No1. brand in the fresh milk category in Malaysia. Farm Fresh Bhd (formerly Holstein Milk Company Sdn Bhd) has filed to be listed on Bursa, with an expected value of RM2 billion.
From padang to Bursa, the story of the milkman & his cash cows.
THREAD 👇
From padang to Bursa, the story of the milkman & his cash cows.
THREAD 👇
1. Some may mistake Loi Tuan Ee for Malaysia's John Lennon with his dapper looks - those John Lennon glasses. He's good at serenading cows, not Yoko Ono.
Since his humble beginnings in Setiawan, Perak, Loi has always held a deep respect for agriculture and a love of nature.
Since his humble beginnings in Setiawan, Perak, Loi has always held a deep respect for agriculture and a love of nature.
2. Loi was a high-flying corporate guy for over 20 years but he felt he needed to do something close to his passion.
Loi noticed many Malaysian brands were selling products made from reconstituted or powdered milk.
To chase his dreams, he left his job & started a dairy farm.
Loi noticed many Malaysian brands were selling products made from reconstituted or powdered milk.
To chase his dreams, he left his job & started a dairy farm.
3. Loi started The Holstein Milk Company, and its subsidiary brand Farm Fresh, in 2008.
He purchased 60 Holstein Jersey cows from Australia to start off the business.
But he soon realised the cows were not acclimatised to the tropical climate in Malaysia.
He purchased 60 Holstein Jersey cows from Australia to start off the business.
But he soon realised the cows were not acclimatised to the tropical climate in Malaysia.
4. The initial years were bumpy. The volume of milk production was low. Loi couldn't get much financing from banks to purchase livestock & set up the infrastructure.
Fortunately, the gov then was looking to invest in agricultural businesses to promote national self-sufficiency.
Fortunately, the gov then was looking to invest in agricultural businesses to promote national self-sufficiency.
5. The Holstein Milk Company caught Khazanah's attention & Khazanah purchased a 30% stake in the company.
The company's spurt in growth began after the funding.
Loi acquired an Australian genetic company that was set up by the Queensland government.
The company's spurt in growth began after the funding.
Loi acquired an Australian genetic company that was set up by the Queensland government.
6. The company developed the Australian-Friesian-Sahiwal cow, a breed more suited to the tropical climate.
The heat-resistant hybrid cows were the game-changer as they allowed Farm Fresh to produce a high volume of milk to meet the ever high demand.
The heat-resistant hybrid cows were the game-changer as they allowed Farm Fresh to produce a high volume of milk to meet the ever high demand.
7. Another turning point for the company was the creation of the distribution network.
Loi's partner - HMC & Farm Fresh's chief operating officer Azmi Zainal pioneered an innovative distribution method that would allow all Malaysians to discover natural goodness.
Loi's partner - HMC & Farm Fresh's chief operating officer Azmi Zainal pioneered an innovative distribution method that would allow all Malaysians to discover natural goodness.
8. There are as many as 800 home dealers as of 2021.
A typical home dealer can earn up to RM5k a month by just distributing products to night markets, neighbourhood stalls, schools and directly to consumers. The company has 1,300+ agents riding on the home dealers system too.
A typical home dealer can earn up to RM5k a month by just distributing products to night markets, neighbourhood stalls, schools and directly to consumers. The company has 1,300+ agents riding on the home dealers system too.
9. How else did you think the company could dominate the milk market?
Azmi said the company's fresh milk commands a whopping 55% market share nationwide - 1 out of 2 milk-drinking Malaysians drink Farm Fresh.
The company was also innovative in adding new products to its range.
Azmi said the company's fresh milk commands a whopping 55% market share nationwide - 1 out of 2 milk-drinking Malaysians drink Farm Fresh.
The company was also innovative in adding new products to its range.
10. Farm Fresh offers more than 80 SKUs consisting of fresh milk, flavoured milk & yoghurt-based products as well as goat’s milk.
Notable products include the Kurma Milk, launched in 2016, which is popular during Ramadhan season & its vegan series - almond, soy and oat milk.
Notable products include the Kurma Milk, launched in 2016, which is popular during Ramadhan season & its vegan series - almond, soy and oat milk.
11. From 60 to 6,000 cows, here are 3 lessons:
1. Serendipity: HMC was formed during the time when gov was looking to promote national self-sufficiency.
2. Distribution: You can get Farm Fresh anywhere in MY.
3. Innovation: Localised flavours - banana milk, kurma milk
1. Serendipity: HMC was formed during the time when gov was looking to promote national self-sufficiency.
2. Distribution: You can get Farm Fresh anywhere in MY.
3. Innovation: Localised flavours - banana milk, kurma milk
12. There you go - the story of Farm Fresh!
Sources:
a. channelnewsasia.com/asia/malaysia-…
b. malaymail.com/news/money/202…
c. thestar.com.my/metro/metro-ne…
Sources:
a. channelnewsasia.com/asia/malaysia-…
b. malaymail.com/news/money/202…
c. thestar.com.my/metro/metro-ne…
If you like what you've read, RT the first tweet to share the thread with your friends.
Then consider subscribing to our weekday newsletter @ thecoffeebreak.co
https://twitter.com/BreakMyCoffee/status/1447758535429816323?s=20
Then consider subscribing to our weekday newsletter @ thecoffeebreak.co
• • •
Missing some Tweet in this thread? You can try to
force a refresh
