Yakult moves into new market

Japanese dairy firm Yakult Honsha is entering the New Zealand market with its probiotic fermented milk drink this month.

The company will import the little bottles from Yakult Australia, which started production in 1994.

Yakult said it wants to sell about 5,000 bottles by the end of this year, according to Kyodo news, with targets for 2005 and 2006 set at 10,100 bottles and 15,100 bottles, respectively.

A report on the Australia and New Zealand probiotics markets from analysts Frost & Sullivan last year revealed that probiotic yoghurt still makes up the largest segment in the probiotic dairy foods market, accounting for 82 per cent of the total probiotic dairy product volumes in Australia.

And this dominance was forecast to continue over the medium term, leaving the fermented milks segment at 16 per cent, trailing behind.

The report blamed consumers' lack of clear understanding of the specific nature of gastrointestinal functioning and the concept of probiotic action, and said that very few brands are actually marketing their products to consumers from the probiotic angle.

Among the yoghurt brands highlighting the probiotic component, Jalna has the largest market share followed by Paul's Vaalia. Within the fermented milk drink category, Yakult was the acknowledged leader.