Reaping the benefits of automation

Sharmen Chong, managing director of NBC Food Industries

 A WELL-ENTRENCHED maker of chocolate malt drinks, Malaysia-based NBC Food Industries Sdn Bhd recently upgraded its manufacturing process in preparation for new export markets.

Locals know the brand as Socolic’s malt coklat which has been in the market since 2003. Besides malt drinks, NBC also produces functional ingredients, says managing director Sharmen Chong. The company has the added advantage of having Flavoblitz, a flavour provider for beverages and confectionery, as its sister company.

How does a young company stay afloat amidst cut-throat competition?

My father started this business with the chocolate malt drink which we initially produced through dry blending. With dry blending, you get all the dry materials and from there blend the drinks. In 2012, we brought in this high-technology dryer equipment. The technology originated from Germany and the transition to our fully automated manufacturing set up took half a year. The new machine has more than 2,000 parts which contribute to its performance through added mobility and sensitivity. With this machine we can produce different types of ingredients for various food applications.

With flavourings, there is a lot of competition in Malaysia. Some are agents of international brands; some competitors have local manufacturing plants, and many products come from Singapore. As for our chocolate milk product, there are also quite a few big players in Malaysia, including Milo, Vico and Ovaltine.

In terms of product quality, how has the leap from dry blending to automated production improved output?

We are comparing ourselves with these big players because of our machinery. The equipment transforms the wet mix product into dry powder and has an extra grinding process. With the wet mix, all dry raw materials are fully dissolved and form a homogenous body with a special aroma. When it is transformed into powder form, it carries a unique identity with a complete body and mouthfeel superior to dry-blended products. It is uniform in colour without any white spots that can usually be found in dry blends.

When my father started this business, we were only at a certain level. But after we got this machine, production has become completely different. In terms of taste we have a very rich chocolatey aroma. Our product is rich and creamy, and not so sweet. Our price is also very reasonable at MYR 13 (US$3.90) per kilo.

Output is so good that now we are even bringing in one more production line.

You’ve made it in the local market. What is the strategy for winning more overseas customers?

We are exporting Socolic’s chocolate malt drink to Thailand and China and we recently started exploring new markets in the Philippines, Bangladesh, Dubai, Denmark and Australia. Our marketing strategy leans more towards meeting potential clients in exhibitions and trade fairs. We sell and promote our products that way.

Besides malt drinks, you also produce functional ingredients. What are these for?

These are different types of gum to which you add other ingredients. They are for different food applications. Our latest product, which was launched early this year is whipping cream in powdered form. You just reconstitute by blending it with ice, water, or milk. It is storage friendly and keeps for a year. We will concentrate on marketing this product, along with our malted milk drink powder, this year.

 How are those different from Flavobitz products?

At Flavobitz, we manufacture food flavourings from scratch, and in Malaysia, not more than three companies are doing that. We have Halal, GMP, ISO and Kosher certifications. We have an extensive flavour range. For butter flavouring alone for instance, we have more than 20 different types to offer our customers.

Natural flavours can degrade, so flavourings can help enhance the taste but it is not a replacement for natural products. It is a must because of the sensory aspect of tasting: if people are eating durian ice cream they expect it to have that flavour.

The problem is when some manufacturers overdo it, and consumers start worrying about the health aspect of it. So we are here to advice manufacturers how to do it at the right dosage and of course, they also have to add natural ingredients.

Socolic’s chocolate malt drink is enriched with vitamins and minerals

We check the raw materials at the very beginning, and during the intermediate process, when we have a wet mix, we check it again. We check the colour and the viscosity. If everything is okay, it continues on along the process line, and when the powder comes out we check it again. We have to have a consistent product. We do not compromise on quality and we comply with all food acts and regulations.

One of our strengths is that we know our raw materials very well. For example, by simply smelling a particular malt, we can tell whether or not it would make a good product.

Do you conduct R&D in-house?

Yes, we have our own laboratory with seven staff members. Apart from quality control, we test ingredients in the laboratory. Say a supplier approaches us with a new raw material, we get a sample and test it. We blend it with other ingredients and see how it works. We look at the shelf life, storage, the taste, the profile, everything. This is so we do not depend on only one supplier. If there is shortage then we have alternatives. Besides that, we look at product applications. For example, we come up with recipes, ice blended drinks or baking applications with our ingredients.

With the success of Socoholic’s, are there plans to follow it up with a new product?

Our R&D is currently working on a malted milk drink without the chocolate taste, mainly milk and malt. We actually started working on this product because of a request from one of our customers.

Although our emphasis is on marketing our chocolate malt drink we still want to maintain our product pipeline, and continue innovating new products.

What would you consider as the biggest challenge in producing malt drinks?

For me, sourcing good raw materials is a challenge. Our machinery is always at peak condition—it is what we channel inside the machine. You source that particular material, you have to make sure the quality is always there. If you unknowingly use raw materials that have deteriorated, it will bring big negative changes to your end product. So you need to get good information and know alternative sources of raw materials.

Why are good raw materials difficult to source?

You can get any material but to get good materials is not easy. If you have experience in producing, you know that each and every raw material plays a very strong and important part. If you take the wrong raw materials, they would produce a totally different drink. In terms of sourcing we need a lot of passion—and the same goes for R&D.

Stable supply is also important. Take cocoa for example. It is a commodity in Malaysia and other countries, a controlled item with a common price. Sometimes, it is out of stock, and sometimes the price fluctuates. For the supply of this raw material to be stable, governments should provide support to farmers through subsidies, technology transfer, training in better crop cultivation techniques, and improvements in processing.

Our currency is also fluctuating. So when we buy from Europe or from China, we have a pricing problem. Our raw materials are all imported from Australia or New Zealand, China, and Indonesia. If our currency keeps on fluctuating, that will be one of our main challenges in the future.

How do you think these can be resolved?

Maintaining a stable currency would help. We have to be very careful in terms of handling the pricing. So far there are no problems in the Malaysian market. In addition, some manufacturers exceed the required amount for preservatives or additives, but they are still out there selling such products. Tighter checks are needed to make sure these manufacturers comply with food regulations.

 Launched early this year, a powdered whipping cream reconstitutes with ice, water or milk

What is the future like for NBC?

We are confident that more consumers will go for our products because of our product quality and pricing. Nowadays, consumers are smarter – they know how to choose what is best for them. They are also becoming more health conscious; they are looking for products that are not so sweet.