Thursday, April 28, 2005

Addiction and that Green Tin

Who would not have drank Milo? I bet Nestle, the parent company is making millions each year through this product alone. Just practically every household in Malaysia has it. Add that to every single eating outlet, every mamak stall, every school and university canteen, you just name it, chances are every single place has Milo. Not just that, I remember while I was in secondary school, Milo is in everyone's private locker (despite the fact that we were not allowed to keep any food in the dormitory). It helped us to keep going. I woke up on Sunday morning and take out one packet of the 3-in-1 milo and indulge in the comforting feeling it offers. Another comfort food, this thing. When I was small, I seldom had my breakfast before going off to school, but my mama would force me to finish up my cup of Milo. There, I have mama to blame for my addiction towards Milo. Up to this day, I have Milo every single morning, well one of the reasons is because we only have two dinks to choose from, either Nescafe or the infamous Milo. Since I don't really fancy coffee, Milo is just a perfect substitute. So why suddenly there is so much chaos about Milo? Well, read this:

Milo naik harga mulai Jun

PETALING JAYA 26 April - Para penggemar minuman Milo di negara ini terpaksa membayar harga lebih mahal apabila pengeluarnya, Nestle Malaysia Bhd. (Nestle) menaikkan harga runcit produk itu di pasaran mulai Jun ini.
Pengarah Urusan Nestle, Sullivan O'Carroll berkata, harga produk itu yang merupakan penyumbang utama pendapatan syarikat dinaikkan antara tujuh hingga lapan peratus untuk memastikan syarikat tidak mengalami kerugian operasi.
Beliau menjelaskan, kenaikan harga terpaksa dibuat berikutan ketidaktentuan harga komoditi dan kadar tukaran asing yang menjejaskan pengeluaran produk Nestle termasuk Milo.
Katanya, tiga bahan mentah utama yang digunakan untuk menghasilkan produk Nestle mencatatkan kenaikan agak tinggi tahun lalu, menyebabkan kos operasi syarikat meningkat.
Tiga bahan mentah itu adalah minyak mentah, minyak sawit dan bahan pepejal susu kurang lemak (milk skimmed solid).
``Bagaimanapun, kenaikan itu masih belum diputuskan sepenuhnya. Kami akan cuba untuk meminimumkan kenaikan tersebut untuk tidak membebankan pengguna,'' katanya selepas mesyuarat Agung Tahunan ke-21 Nestle, di sini hari ini.

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Nestle isn't stupid, they know Milo is almost a necessity and the demand is pretty much inelastic. Substitutes? I would say many have tried to rival with it, namely Cadbury Hot Chocolate, Vico, Ovaltine, but these are just not the same as Milo. No perfect substitute. Now I wonder what they put in it that makes it just soo addictive. Drugs? perhaps.
Now it is not a question whether the price would increase or not, that is sure to happen already, and now, would the demande for it change? One wonders whether customers would switch to other forms of comfort drink such as Cadbury Hot Choc? I don't know about others, but to me, nothing could really replace the green tin contents. I am addicted.

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