Tuesday, November 25, 2008 Students’ school project grows into lucrative, ‘healthy’ business By Nancy R. Cudis Sun.Star Staff Reporter
IT BEGAN as a class project, but now a group of senior business administration students at the University of San Carlos (USC) has their hands full—producing and selling frozen milk bars called, Freeze Milk.
The group of 15 students formed MilkInnove, which produces frozen milk bars in sachets in compliance to a class requirement.
“Milk is for everybody, so we came up with this innovative way—with appealing packaging—to encourage more milk drinkers,” said MilkInnove executive vice-president Bebe Josephine Dy.
Freeze Milk is made of pure cow’s milk and has a shelf life of at least a month. It comes in four flavors—chocolate, melon, cookies and cream, and strawberry—with “value-added” ingredients, such as jelly.
Last March, the students pooled their financial resources to come up with about P118,000 that formed their capital for the business and was used to pay for ingredients, packaging, rentals and other operating expenses.
The students, who have double majors in marketing and entrepreneurship, also used the money to pay for their training in milk handling.
They decided on milk as their product after conducting a feasibility study in October last year, in which they learned that there is good demand for milk products and that consumers are willing to pay for healthy products.
MilkInnove had to conduct an awareness campaign about its product in the first few months of its operations, especially at the height of the China milk scare.
Milk products from China were found to contain me-lamine, which is used to make plastic and fertilizers. Several Chinese children became ill as a result of their intake of milk containing melamine.
“We assured customers and dealers that we get pure cow’s milk (from local sources), specifically from the Cebu Federation of Dairy Cooperatives, which is also supportive of our business,” said Vienna Vanessa Sia, MilkInnove vice-president for marketing.
At its production site in Sikatuna St., Cebu City, MilkInnove produces at least 1,200 pieces of Free Milk bars a week and earns an average of P4,800 a month through consignments and dealerships.
MilkInnove won best in product, distribution and market exhibit in a school contest last August. It will present the product and the business in February next year, prior to their graduation.
“But some of us still want to continue this business after college. We already have a business permit. We are now processing our papers with the Bureau of Food and Drugs. We are looking at selling to more schools and we also welcome more dealers,” said MilkInnove chief executive officer Karen Bajenting.
For dealers, the 100 ml Freeze Milk is sold at P8 for a minimum order of 100 pieces. The frozen milk bars are available at the suggested retail price of P10 each.
Freeze Milk is available at canteens at the Cebu Institute of Tecnology and USC Main Campus.
MilkInnove is currently negotiating for a consignment contract with the Philippine Christian Gospel School and the USC Talamban Campus. The group also accommodates orders from the Cebu Normal University, University of Southern Philippines and Center for International Education. (NRC)
