Bettermilk

Bettermilk-Consumers can trust, Farmers can be proud, Animals can stay healthy

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Authors

Yi Chun Shen

Yi Chun Shen

Ying Lin

Ying Lin

School

TIAS School for Business and Society

TIAS School for Business and Society

Professor

Mirjam Minderman

Mirjam Minderman

Global Goals

8. Decent Work and Economic Growth 10. Reduced Inequalities 12. Responsible Consumption and Production 13. Climate Action 17. Partnerships for the Goals

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Summary

Bettermilk adopts a unique strategy by prioritizing milk quality at its source by improving cows' health and addressing the root issue. This approach enhances local farmers' competitiveness and aligns with SDG 12 related to responsible consumption and production, contributing to healthier ecosystems. Additionally, Bettermilk's innovative marketing promotes regional diversity and sustainability; by collaborating with unconventional outlets, it expands market reach, aligning with SDG 8 (promoting economic growth), SDG 10 (reducing inequality), and SDG 17 (partnerships for the goals). Furthermore, it encourages partners to improve the production environment and minimize waste, supporting SDG 13 (Climate action) and promoting environmental sustainability.

Innovation

Generally, significant suppliers tend to develop new products by adjusting processing methods, such as applying different sterilization methods, which affect milk taste, or adding various nutrients. However, Bettermilk has chosen a more challenging approach: enhancing milk quality at its source by improving the cows' health. This strategy not only addresses the issue at its root but also enhances the competitive edge of local farmers.

Furthermore, Bettermilk employs an innovative marketing strategy. It encourages farmers to differentiate the features of their milk, allowing them to blend these traits with local cultural elements, thereby creating distinctive products. Simultaneously, instead of adhering to conventional distribution channels like supermarkets, Bettermilk collaborates with various relatively minor outlets, such as tea shops, ice cream brands, and snack brands. Its focus lies in emphasizing the diverse applications of milk and the fundamental values that its brand represents. This unconventional approach not only broadens the market reach but also underlines the versatility and uniqueness of Bettermilk's products.

Bettermilk-Consumers can trust, Farmers can be proud, Animals can stay healthy

Inspiration

In the realm of Taiwan's dairy industry, the pervasive influence of four significant corporate entities has resulted in a monopoly that significantly curtails farmers' bargaining power and leaves consumers uninformed about the milk’s origins and quality. Witnessing this imbalance, Chien-Chia Kung contemplated the feasibility of establishing a conduit between farmers and consumers. Bettermilk operates on the principle of transparency. The initiative cultivates trust by providing consumers with detailed insights into the milk production process, encompassing the source of the milk and the methods employed. This transparency empowers consumers to make informed decisions about their milk purchases and fosters confidence in the products they choose.

Moreover, Bettermilk advocates for stringent quality control measures. Farmers are encouraged to produce milk imbued with local cultural nuances and distinctive characteristics through this emphasis on quality. By combining quality control with the rich tapestry of regional traditions, farmers can elevate their products, augmenting their inherent value. Consequently, this approach not only fosters a sense of assurance among consumers but also enables farms to secure more equitable profits, thus revitalizing the dairy industry while ensuring the fair treatment of its essential stakeholders.

Overall impact

Bettermilk's pioneering efforts in promoting high-quality milk production and consumer education have not only revitalized Taiwan's dairy market but have also set a significant benchmark for responsible business practices in Asia. As the first dairy brand in the region to achieve B Corp Certification, boasting an impressive overall B impact score of 80.6 in 2020, Bettermilk's commitment to sustainability and quality has had a transformative impact on society. This demonstrates that ethical business practices can positively change long-established industries while empowering consumers to make more informed choices.

Business benefit

In the wake of food safety issues, people have become more aware of the importance of what they consume. Bettermilk seizes this awareness to expand its customer base, capitalizing on the opportunity. The remarkable achievement of Bettermilk in the Taiwanese dairy market has instigated substantial transformations and yielded significant business advantages. Concurrently, the influx of smaller farmer-owned brands intensifies market competition, ultimately favoring consumers with enhanced choices and quality standards.

Furthermore, Bettermilk's dedication to creating dairy products with strong brand recognition has opened doors to valuable business partnerships. Collaborations with drink stores and developing convenience store dessert items exemplify these strategic alliances. These partnerships expand Bettermilk's product reach and enhance its reputation as a trusted brand in the dairy industry. Bettermilk's success has transformed the market, boosted its customer base, and facilitated profitable business collaborations, solidifying its position as a pioneer in the Taiwanese dairy sector.

Social and environmental benefit

Collaborating with Bettermilk has brought about a profound transformation not only in the mindset of farmers, but also in the broader social and environmental landscape. This shift is most evident in the fact that 70% of farmers have wholeheartedly embraced the principles of the diary circular economy, signaling a heightened commitment to investing in environmental improvements. A tangible example of this commitment is a generous act by one farm owner who, in collaboration with Bettermilk, donated land to establish a biogas power plant. This environmental initiative not only underscores the changing perspective among farmers but also showcases Bettermilk's influence in advancing sustainable practices.

Furthermore, Bettermilk's proactive approach to addressing the scarcity of large animal veterinarians by nurturing new talent within the dairy supply chain has had a significant social impact. This initiative has contributed to the professional development of individuals and, moreover, led to a substantial increase in employment opportunities, benefitting the community at large.

Since its inception, Bettermilk has remained steadfast in achieving ESG goals. While its current focus remains on addressing environmental challenges, such as conducting comprehensive ISO 14064 certification, an international standard for quantifying and reporting greenhouse gas emissions, the company's commitment to maintaining its core competencies ensures that it continues to drive positive change in both society and the environment. This interconnected approach exemplifies Bettermilk's enduring commitment to sustainability and its mission to create a better future. In the wake of food safety issues, people have become more aware of the importance of what they consume. Bettermilk seizes this awareness to expand its customer base, capitalizing on the opportunity. The remarkable achievement of Bettermilk in the Taiwanese dairy market has instigated substantial transformations and yielded significant business advantages. Concurrently, the influx of smaller farmer-owned brands intensifies market competition, ultimately favoring consumers with enhanced choices and quality standards.

Furthermore, Bettermilk's dedication to creating dairy products with strong brand recognition has opened doors to valuable business partnerships. Collaborations with drink stores and developing convenience store dessert items exemplify these strategic alliances. These partnerships expand Bettermilk's product reach and enhance its reputation as a trusted brand in the dairy industry. Bettermilk's success has transformed the market, boosted its customer base, and facilitated profitable business collaborations, solidifying its position as a pioneer in the Taiwanese dairy sector.

Interview

Ni Ting Wu, Sustainability specialist

Photo of interviewee

Business information

Bettermilk

Bettermilk

Taipei, Taiwan, TW
Business Website: https://www.bettermilk.com.tw/
Year Founded: 2015
Number of Employees: 51 to 200

Bettermilk, led by founder Chien-Chia Kung, champions the idea that "better cows create better milk." Focusing on a "single-source" model, the company ensures quality from the production source. Upholding veterinary supervision, single-farm sourcing, no ingredient adjustments, and fair trade, Bettermilk aims to offer top-notch dairy options. Committed to a trustworthy food and agricultural ecosystem, it aspires to be Taiwan's premier dairy brand, prioritizing consumer trust, farmer pride, and animal welfare to impact the industry positively.