Homegrown formula milk brand eyes bigger market share with affordable prices

SINGAPORE — As the Government works on measures to cut back the climbing prices of infant-formula milk, a Singapore firm has come up with an affordable range priced from S$33 to S$39 for an 800g tin. This is lower than the average of S$56 for a typical 900g tin.

Einmilk, manufactured in Singapore with milk from New Zealand, is targeted to be on the shelves of more retailers within the next three to six months.

The brand prides itself as being “made in Singapore, made by Singapore, and made for Singapore”, and the milk has been on sale at all 13 branches of U Stars Supermarket in Singapore since last week.

To keep prices affordable at below S$40, the company uses a few strategies, including what it calls “niche channels” — such as online platforms and U Star Supermarket — to introduce the brand into the market. It also has a “very lean” internal cost structure. Mr Chan Yong Chye, 37, its business director, said: “We don’t invest a lot in marketing, we don’t have a celebrity spokesperson ... All these will add to costs, and nobody is going to absorb the costs (except) the consumer.”

Mr Chan also said the company targets to grow its business “through increasing sales volume rather than increasing prices”, such as by reaching out to young parents through online platforms, or through “simple” promotional activities that do not incur too much cost.

He did not want to reveal how much money was pumped into the business.

Einmilk is owned by Singapore company AE Solution, its sole distributor and exporter, and produced by SMC Nutrition, one of four infant-milk powder licence-holders in Singapore.

The product was conceived in 2015 by two Singaporean fathers, who decided then to do something to address young parents’ complaints about the high prices of infant-formula milk.

Mr Eric Chua, 52, and his co-partner Alvin Tan, 53, both businessmen, worked on producing an affordable, locally made milk powder, banking on how the Singapore brand has always been trusted for its quality assurance.

The price of Einmilk appeals to marketing executive Edison Tang, 33, who said he would be willing to let his 13-month-old son have a try. He has been buying Enfagrow A+, which costs about S$45 per 900g tin.

“If it’s a Singapore brand that has passed quality checks, why not? We should always give new brands a chance,” Mr Tang said. “I will be able to save about S$7 per 800g, and that will result in quite significant savings in the long term,” he added.

However, secretary Clarice Tan, 29, who has a seven-month-old girl, was more sceptical about the quality of Einmilk because it is a new product. She is sticking to Similac, which costs her about S$60 per 820g tin.

For Madam Chua Ee Lynn, 35, a clerk, the ingredients of formula milk and how her two-year-old boy reacts to them, such as whether he will get constipation, are important considerations. He is still drinking Enfagrow A+ Stage 3. She will try out samples before deciding if she will make the switch.