Alaska MILK CORPORATION

AlASKA MILK CORPORATION THE MARKET ACHIEVEMENTS nutritionally comparable product at a locally more There is an ever-growing awareness in the Philippines of Alaska pioneered the milk industry in the Philippines and acceptable price. By 1976, the Alaska brand became the both the nutritional and health-giving benefits of milk. keeps its leading position by continually adjusting to market leader, a position it retains to this day. Alaska can proudly claim a great deal of the credit towards shifting market tn:nds. In 1975, the Marikina Dairy Corporation owned by creating this awareness. From the initial, but cver-popularcanned evaporated the Australian Dairy Corporation became a shareholder As with most countries located in the tropical belt, and sweetened condensed milks, the range has expanded. in the Company. The equipment from that plant was later the Philippines has never had a dairy industry. The increasing popularity for milk powder has been relocated to Cebu to strengthen the business in the Milk is therefore not a traditional component of the catered for by increasing plant capacity. growing Visayas and Mindanao markets. Filipino diet. When Alaska filllt commenced operations, Alaska pioneered the introduction of Ultra Treated In addition, in 1976 the company pioneered UHT thiny ycalllago, as an imponerof milk products, the daily milk in the Philippines using the Tetra-Pack. The Alaska aseptic packaging in the country in conjunction with Tetra per capita consumption was substantially below Fresh is highly nutritious milk that has been treated to Pale A line offlavored milks and fruit juices was initially nutritional recommendations. eliminate microorganisms allowing a long-shelf-life even launched. In these days, costs, plus lack of awareness of at room temperature. In spite of the treatment, the milk As consumer preferences shifted from liquid to nutritional 'value-for-money', inhibited the market With retains not only the essential vitamins, minerals and powdered milk, the Company also expanded into spray the introduction by Alaska ofloeally-produced evaporated calcium, but also its rich creamy taste. drying facilities to manufacture powdered milk in 1982 and condensed milks that substituted anhydrous buuerfat For the diet conscious, Alaska produces Slim, which and these facilities were expanded in 1994. with indigenous '~getable oils, it effectively lowered the is similar fresh milk but with 98% of the fat content To capitalize on management synergies and cost and expanded the market. removed. efficiencies, the Company was merged with General Today, milk has become an accepted and welcome An ever-growing number of children have been Milling Corporation {one of the Philippines largest food pan of the Filipino diet. Filipinos are realizing that it is encouraged to drink milk with the introduction ofAlaska companies) in 1988 and continued as an operating not only health giving, but also it tastes very good. Cboeo, chocolate-flavored milk. division for over six yeaN. Finally, in September of 1994 For over twenty yealll, Alaska has been the market the division was spun ofT and incorporated as the Alaska leader in milk products. HISTORY Milk Corporation. capitalizing on the high recognition It continues to educate the Filipinos as to the value The company was originally incorporated in 1969 as of the Alaska brand. of milk being an essential pan of their diet. This ever Holland Milk Products, Inc. in pannelllhip with Holland In 1997, Alaska launche<l Alaska Slim, the dietary growing market has inevitably attracted competition, but Canned Milk, lnl'l.. the largest dairy cooperative in the milk and Choco, the chocolate flavored milk. In addition, none can complete with the trust ofquality and value for Netherlands. in 1997, Alaska entered into a marketing agreement that money of the Alaska name. In 1972,the Company filllt produced "Alaska" liquid allowed them to exclusively distribute Nabisco products canned milk by substituting anhydrous butterfat with throughout the Philippines. indigenous vegetable oils while maintaining a THE PRODUCT To the majority of Filipinos, Alaska is milk. Its products · I ~ ~L& are requested by name. The variety of milk products I'~~ (1Jff6/{. offered allows all sectoN of the market to be SCI\~. { t .,.l Alaska also markets canned milks under the Frisian , :.,la'beii l. The most popular of item. especially in '(~'~~ ~::;;;:;:;:;;::;G:;;ir ;;l the provinces, would be Alaska Evaporated Milk. Not only used as an additive to hot beverages, this milk has become a standard ingredient of many Filipino recipes. Alaska Sweetened Condensed Milk abo retains its popularity as a quality good-tasting product. The ever-increasing market for Alaska Powdered Filled Milk is a clear indication that the product is truSied by the public. Historically high sales were 12 ('.,...J ~-.;,.,--- ·· ..· •. ~.,.... ·... .. ~ ~ ' f ' "'f ...· ·'· 1 •• achieved last yur. Atthe top end of the market, the UHT Team to the 1998 Asian Games. In addition, the team and competitive pricing has long been reeognizcd by the liquid milks Alaska Fresh and, for the diet-conscious, supplied three players for that side. buying public. They put their trust in Alaska milk Alaska Slim have become vel)' popular brands, while the Alaska has long been recognized as a supporter a products. Alaska Choco, with its cheerful packaging, has become healthy life style through participation in sports. The Alaska has the image of clean and healthy living. the favorite drink ofchi ldren. company SpOitSOrs Power Camp, which hosts over 3.000 Having a successful basketball team of young. clean-cut children a year allowing them to participate in Alaska men, means that the nnme "Al aska" is mentioned in many RECENT DEVELOPMENTS sp-onsored lournnments 3nd clinics in llaskclball, day-to-day conversations by people covering the market Developments are not just limited to products. Thee\-er Volleyball and Football. spectrum. ch3nging retailing industry demands that efficient In 1998. aware of their social responsibilities. Alaska If it carries the name AIas ka. people expect it to be distribution ofproductS is an imponant as quality control launehed "Project Smile" where the basketball team, not just good. butexeellent. Alaska ne'-er let them down. and production. Alaska used to exclu.sively distribute itS many of which are idolized by children. visited various products using the services ofa separate distributor. This orphanages in Metro Manila. Over 700 children not only company, Alaska Trading Company, lne .• has now been got to meet their heroes, but also reeeived health-giving absorbed, allowing total control over openuions. and highly nutritional Alaska products. In 1997, Alaska had forged an agreement with the giant Nabisco group. This agreement had given Alaska PROMOTION the exclusive marketing rights of Nabisco products Alaska has always been very conscious of brand building. throughout the PhilippiOC$. Having the distribution fully To this end. it eonductS regular tri·media, well-planned under its control enabled Alaska to seek and obtain a campaigns for its products. similar agreement with Quaker Oats whose products Local Slat$ from the entertainment world arc often demand the addition of milk. ustd. The ever-popular Sharon Cuneta was featured in a Alaska had acquired a basketball fra nchise in the major campaign used the services of Ms. CMeta as well Philippine Basketball Association way hack in 1986. The as their own basketball stars. lntentationally known Alaska Professional Basketball Team were worthy singer Gary Valcnciono was also contracted to join this winners of the Centennial Championship in 1998 as well campaign. which feat ured the top lip covered in milk. THINGS YOU DIDN 'T KNOW ABOUT as having its coaching stafT icad the Philippine National As well as media campaigns, Alaska fully utilizes its ALASKA basketball team to not only project a clean and healthy image. but to participate in publicity • The main plant in San Pedro, Laguna, sits on 7 outings to meet the people and Hectares of land. promote the products. Various promotions are • The Liquid Milk plant is capable of producing and conducted in major shopping canning 180 million liters of milk per day. Enough malls as well as talent to fill nearly 2,500 domestic swimming pools. competitions for children. • The Powdered Milk plant is capable of producing Alaska is vel)' aware of the 2,500 kg every hour. This means that one full day's valuable contribution made to its production is equal to the combined weight of nearly success by the retailer$. Alaska 850 average adult Filipinos. works closely with them to assist in promotions and displays that • A television commercial of a little boy playing will enhance sales. basketball with Cisco Oliver and the catch line of "Galing mo, man!" was made and shown in 1976. BRAND VALUES It thrust Alaska to the number one market position. Alaska has worked long and hard Amazingly, it still emerges in consumer research. to achieve its brand reeognition. The consiSient auention to quality 13 .

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