Dutch Lady Milk Industries Bhd (Dutch Lady) is taking steps to strengthen its presence in the business-to-business (B2B) segment through its Dutch Lady Professional range.
The move to B2B is a natural progression as Dutch Lady has already established itself as a leading player in the retail and consumer segments, said Ramjeet Kaur, Managing Director of Dutch Lady.
Ms Kaur said the B2B segment is a way to accelerate its growth after supplying dairy products to the local market over the last 20 to 30 years. Kaur said, “Dutch Lady will work closely with the global team to push for the B2B division as we can see the evolution and phenomenal growth of the tea and coffee markets year-on-year.”
In Malaysia alone, more than 1.6 billion cups of coffee and tea are consumed every year – a huge market.
Kaur added that the Dutch Lady Professional Fresh milk and UHT Milk are made locally for the Malaysian market. Dutch Lady’s move to strengthen its B2B presence is in line with its parent company, Royal FrieslandCampina’s goals, which is to establish a stronger footing in the coffee and tea industries through collaboration with the ASEAN Coffee Federation to expand into the B2B market.
To meet growing demand for both its consumer and B2B products, Dutch Lady will also be moving to its new production facility at Bandar Enstek in 2024 which has a bigger production space compared to its existing site at Petaling Jaya. It has also increased its investment in the new facility to RM540 million (US$118.4 million).
Dutch Lady is also working closely with industry players in the coffee, tea and bakery industries to review product formulations for example, creating better foaming for latte and to improve the creamy texture of coffee and tea with milk. At the same time, it is also trying to find ways to rein in rising cost of dairy raw materials which affect its topline performance.
