The firm, which sources and manufactures in New Zealand, will launch the product by the end of the year to complement its current milk powder series that’s tailored for infants to 4-year-olds, filling the gap for convenient natural solutions in APAC.
Elke Pascoe, founder and CEO of LittleOak, has identified Singapore, Malaysia, and Vietnam as key focus areas for the next three years.
“With the rise of the middle class, Vietnam today feels to me like Singapore did about 20 years ago. There are big retailers there who use palm oil and synthetics. This gives us a chance to offer something much better. We aim to disrupt the market and provide natural nutrition for children. This also allows us to explore exciting new formats, like our RTD options, which could be interesting for Vietnam. It's an exciting opportunity for us to be creative and innovative in these markets. The only barrier to entry is navigating the regulatory process to get our brand registered, but we are confident we can overcome these challenges,” said Pascoe.
Nutritious and convenient
Pascoe discovered that unlike common retail milk formulas, whole goat milk did not cause bloating, gut discomfort, and rashes for her children. This prompted her to develop goat milk formulas that do not contain artificial and inflammatory ingredients, which are present in the cow milk formulas in the market.
“Compared to cow’s milk, goat milk is closer to human breast milk in taste, texture and nutritional profile. It has smaller, easier to digest fat globules, and is also lower in lactose, making it gentler on little tummies. It also has naturally occurring A2 casein protein, so it is less inflammatory than cow milk. Besides, goat milk is high in naturally occurring oligosaccharides and taurine, whereas cow milk has none. And for growing children, goat milk has better bioavailability of key nutrients including iron, calcium and magnesium,” said Pascoe.
She also emphasised the importance of being palm oil free, which differentiates LittleOak from most commercial cow milk formula brands. Instead, the firm uses cold-pressed flaxseed oil from the South Island in New Zealand.
Flaxseed oil is known to boost immunity, aid bone and muscle development, reduce hyperactivity, and improve sleep.
“On the other hand, palm oil inhibits the absorption of calcium, fat, and DHA in babies – three critical nutrients that are essential for healthy development. Despite claims of being palm oil-free, many infant formulas still contain derivatives of palm oil, which can affect nutrient absorption.”
LittleOak’s goat milk is also fortified with docosahexaenoic acid (DHA) and arachidonic acid (ARA), which are fatty acids present in breast milk. They play important roles in early infant development.
While many brands source their DHA and ARA from fish oil, a common allergen, LittleOak obtains them via natural and sustainable algae sources in Europe. This means 4 to 5 times higher concentrations of DHA in LittleOak’s products.
The firm’s existing goat milk powder is available in tin cans and sachets, while the RTD range will make it even more convenient for any occasion from packing for daycare to travelling far from home.
Furthermore, the RTD range will be fortified with iron, an important mineral that can reduce the risk of mental health issues like anxiety and ADHD.
Sealed in 250ml packs with a cap closure, the milk can be stored at ambient temperature for 9 months. To serve, just shake before pouring out to drink.
“Our focus is on providing convenient and natural solutions. RTD products is the future. In the UK, for example, the RTD market is quite developed, with people opting for RTDs over powders. We believe this trend will significantly influence the formula category over the next five to ten years,” said Pascoe.
Overcoming challenges
Some people might not accept the strong taste and smell of goat milk, which could affect consumer acceptance. But Pascoe said the unappealing odour is due to overprocessing, which will not be the case for LittleOak.
“Goat milk only develops a strong smell when it is over-processed. In its natural state, goat milk is delicious. I conduct taste tests by comparing LittleOak to two or three competitor products. Everyone is always amazed because they had no idea it could taste this good,” said Pascoe.
LittleOaks uses fresh whole goat milk directly from New Zealand farms. The milk is immediately processed within the country, and then canned and packed in Auckland before being distributed for sale.
Generally, the formula development process involves first heating the milk to create a powder, then turning it back into liquid, then heating it again, and finally blending it into formula. But the more heat is applied, the more nutrients are depleted. LittleOaks heats the milk only once, halving the heating process to preserve the nutritional profile of goat milk.
To educate consumers, Pascoe has a team of health experts that includes nutritionists and experienced caregivers who answer queries via social media. She also hosts in-store sampling sessions to spread awareness. The point is to be accessible to as many parents as possible, which makes pricing crucial.
“Our pricing reflects our premium, all-natural offering, but we strive to keep it affordable for families. Interestingly, when we first started, people questioned why we weren't more expensive if our product was as good as we claimed. We tried to price it affordably, but this led to scepticism about our quality. We've had to increase our prices so people believe in the quality of our product, which has been a challenge. I wish we could lower our prices, but it's been difficult to convince people of our quality without higher pricing,” said Pascoe.
When asked if the RTD range will affect the sale of its current products, Pascoe said it should not because they serve different purposes.
“I don't think it will cannibalise our existing products. Parents will likely continue to buy cans for home use while opting for RTD products for holidays, daycare, or school. We see RTD as complementary to our current offerings. However, if we look ahead 5 to 10 years, I suspect there will be a shift towards more convenient formats, with parents increasingly purchasing sachets and RTDs.”
LittleOaks is currently available in Singapore’s Cold Storage supermarkets and Scoops Wholefoods stores. In Australia and New Zealand, it is sold in major supermarket chain Woolsworths. LittleOaks website lists USD 52.95 for an 800g can of powdered milk.
