Regional manufacturer, Nestle Singapore is now optimising its production for Milo malt powder as an unexpected surge in demand in Japan has resulted in a supply shortage.
Japan is one of the 22 overseas markets that Nestle Singapore supplied Milo powder to, and the current pandemic has resulted in many consumers staying at home which indirectly resulted in higher demand for malt drinks like Milo. Demand for Milo has also increased in the home country.
Nestle Japan will halt the sales of 3 Milo products due to shortage of ingredients from Singapore, as demand from the Japanese consumers grew 7 times higher than a year ago. It is projected that these products will return on Japan supermarket shelves only by March 2021.
Milo powder in loose form is manufactured in Singapore and exported for packaging and sale to end-consumers in Japan and other countries.
A spokesperson from Nestle Singapore claimed that the unexpected surge in demand in Japan could be attributed to a popular viral tweet late last year by a Japanese who claimed to be energised after drinking Milo for a month.
Japan was Nestle’s 10th largest market in 2020 with annual sales exceeding US$2 billion in 2020.