Yakult - Q&A Session

Smarties

1. In HK, Yakult only have one to two products. Will Yakult consider using its unique existing technology to diversify itself and expand the market? For example, adding new product lines to sell related healthy products such as yogurt or Yakult sweet or others.

Now, Yakult has offered red and green Yakult drinks already. However, the factory of Yakult in Hong Kong is relatively small. It is not possible to add new product lines without extra space. In fact, a variety of fruit taste of Yakult drinks can be homemade by customer easily and directly.


2. From the news of HKET, nutritionists claim that even a light Yakult contain more sugar than a Coke. Facing the criticism and challenges, how do Yakult deal with the negative public opinion?

HKCC had investigated many company. Unfortunately, it use Yakult as an example only. Frankly speaking, the sale and revenue has been affected at that period. Although Yakult drink has high sugar content, it is necessary to add sugar in the drink. Probiotics cannot alive in environment without sugar. Todays, sales and revenue is rising continuously after extensive effort in promotion.


Apex

3. As Yakult contains the milk powder which makes it a dairy product, it is harder to preserve than the other kinds of drinks. How does Yakult manage to preserve their products with such a large amount of them are being sold in the market? How does Yakult manage to control the inventory as the demand is sometimes hard to predict?

Though demand is sometimes hard to predict, Yakult has plenty of methods to address it. Yakult keeps checking customers demand after each product delivery and has lots of investigation or survey to predict demand.


4. Yakult has been increasingly putting focus on Guangzhou such as building a second manufacturing facility. With improving transport infrastructure at Pearl River Delta, does your company have the intention to move the production plant from Hong Kong to Guangzhou? Why or why not?

Yakult do not have such intention. Yakult has set up its own factories in different regions because their products have very short expiry date about 1 month. Supposing that the Hong Kong’s manufacturing facility is shifting to Guangzhou, it would reduce the edible time of Yakult drinks.


Morning

5. It is observed that the rumor to Yakult products in China such as preventing cancers, whitening faces leading to the rising demand on Yakult. Are there any benefits and drawbacks caused by the rumor? Are there any follow up actions to deal with this rumor?

To cope with this rumor, Yakult issued a clarification that their products would not produce any relevant carcinogens and cancer. Besides, Yakult started to hold many promotion and seminar for publicity and educational purpose. It help consumer to understand Yakult drink’s benefits.