Innovation

The innovation brought by KSE in 2010 is versatile and novel. With seven soaps, three lotions, and three body wash variants, it is the first to offer carabao milk-based bath and body products since milk variations often come from cows or goats. Carabao milk has several skin benefits with its high-fat content (10-12%) for younger, radiant skin and vital proteins that most milk does not have. The idea began with TJ and the Gonzales family, known in the community for their projects geared toward farmers and for building a tight-knit group of dairy farmers from 3 towns. According to our interviewee, Mary Gonzales, the daughter of the founders, she saw her father study and experiment with their carabaos. Her mom, Nerlita, who was familiar with soapmaking, thought of incorporating the carabao milk in soap using the cold process method.

As Nerlita was a housewife at the beginning of their social venture, soapmaking became her pastime but was soon utilized in developing business innovation. She even attended training at the Department of Science and Technology (DOST) to enhance her skills in producing soaps. When satisfied with the finished product, she started gifting the soaps to family members. Nerlita would also receive requests to sell batches of soap as event giveaways for families and friends. The demand for Kalamilk soaps grew to the point where the proprietors now manufacture them as they already have designated stores and resellers.

Yet, as KSE continues to expand, the essence of its mission remains a core part of its operations, that is, to help the Baliuag, Bulacan dairy farmers. In the company’s first bazaar held on November 5 to 6, 2011, at the Rockwell Center in Makati City, one peso of every sale was placed in a jar to be added to an allotted percentage of their profits. This would allow them to have a small Christmas celebration for the families of the farmers. The business purchased educational materials, clothes, and toys as gifts for the farmers’ children and held the party in a local food chain.

Inspiration

Before the founding of KSE, the dairy farmers of Baliuag, Bulacan, were burdened with a surplus of carabao milk. As the milk spoils quickly, most farmers are forced to dump the extra milk, making it prone to wastage. The owners’ family recalled drinking carabao milk daily to minimize the excess, but they realized that drinking it alone would not solve the problem. Mary said, “my parents wanted to create a product that would prolong the life of the milk while setting ourselves apart from the typical carabao milk market.” However, finding the ideal product was not an easy task. She recounted that her mom had “tried creating a candle out of the milk but, unfortunately, it failed.” But as the saying goes, when one door closes, another one opens. Mary then shared her mother’s light-bulb moment, “thankfully, candle-making is kind of similar to soap-making, so that is where my mom succeeded.” Thus, the creation of Kalamilk soaps.

What once began as a hobby and a means to support the dairy farmers of Baliuag, Bulacan, evolved into a social enterprise. The carabao milk market was already familiar with carabao milk as an ingredient in food products such as yogurt, ice cream, and pastillas. Still, KSE distinguished itself by introducing carabao milk into one's skincare routine. As a result of Nerlita's experiments with a variety of high-quality essential oils, Kalamilk expanded its product line beyond just selling plain carabao milk soap and began offering different variants of the product.

“This is who we are now.”

Overall impact

“Farmers feed the world. Without their efforts, we won’t be able to enjoy the food on our table daily.”

The company has looked for ways to help the agriculture and business industries by creating jobs and positively impacting society. It significantly enriched farmers’ livelihoods by providing additional income as the company bought the excess extracted milk that was often susceptible to spoilage due to overproduction. Kalamilk buys the extra milk for PHP 50 - 60 per bottle from the farmers, which is a considerable amount to feed their family in a day-to-day setting and help fund their children's education, given that there is plenty of excess milk.

“…we’re a social enterprise helping the farmers and their families. Aside from that, we are raising awareness about carabao milk’s benefits and its emergence in the beauty and skincare market.”

With the success of KSE, 25 farmers in the business have also been awarded imported carabaos from Italy by the Philippine Carabao Center, significantly increasing the amount of milk produced compared to native carabaos and making their income flow more sustainable. As such, the owners are starting to explore a possible product expansion into lip balms, body butter, and the like, which are also centered on using carabao's milk.

“We’ve been given reviews that they became “hiyang” or their skin adapted best with Kalamilk products. I’m pleased hearing that because who would’ve thought a DIY hobby of my mom would become the source of living for our family and the farmers we’ve been helping ever since.”

Personal users of the innovation also reveal how their skin is much more glowing and softer after each use. It resulted in repeat purchases and brand loyalty, which continued the company’s mission and ecosystem. Their reviews have helped the company maintain a good reputation that our products are effective, healthy, and sustainable. They could not believe that a mini-hobby of Mrs. Gonzales would later become a source of living for their family. In turn, their social enterprise changed the lives of several farmers and their families. This is an impact that they would always be proud of doing – initiating genuine change through the beauty and power of carabao milk.

Business benefit

“The innovation from KSE’s success brought the company to great heights. We were featured in different news channels and tv shows around 2011-2014 and almost got interviewed by Kris Aquino in her show, Kris TV. Unfortunately, my dad declined, and I wish he had taken the opportunity to widen the company’s horizon.”

More than that, Mary’s mother has given several seminars and training for women and farmers around the country. This has helped them get recognized by companies such as BeautyMNL and made them realize how to shift and modify their business model, given that the company started with no target market and began its distribution channels. They evolved by aiming to get the attention of the employed, entrepreneurs, and homemakers in Classes B and C. Their distribution channel shifted, and they hired Arete Maximus to take charge of shelving their products. These changes made the stakeholders more holistic in shaping their identity as a company to help them be more organized and thrive in the long run.

"Once I've graduated my four-year degree course in DLSU, I have plans to maximize KSE’s potential because I believe there is so much room for growth and opportunities in this industry," said Mary. Only special orders are done right now, but she envisions helping the farmers and their families in the future and opening more opportunities for them. One of the things she is eyeing now would be expanding the product line of Kalamilk. She hopes this would bring the farmers more job opportunities, experience, and new challenges. In turn, customers would be pleased to enjoy a wide range of Kalamilk products that they can explore. Overall, more business ventures would entail countless work opportunities for farmers.

We would like to suggest to Mary that she can open scholarships to the farmers’ kids from time to time. It is sustainable in the long run as it prepares and secures the child's future. She can also provide monetary loans for farmers if the company has extra resources. With loyalty and trust built over these years, it’s a small price to give back to these hardworking farmers. In the end, she must be able to fulfill the gaps in the company when her time comes and assure that she can provide more than what her parents are doing right now. Her stay at De La Salle University will equip her with enough knowledge and experience to become a fine businesswoman who can lead Kalamilk’s future to great heights.

Social and environmental benefit

“I am attached to the children of the farmers. That’s why every sale of soap, lotion, or hand wash, I already envision what to put in their Christmas gift bags, not just what they need in school but also what’s on their Christmas wish list.”

Since the creation of Kalamilk Soaps, the farmers have benefited from the organization by using their additional income to continuously send their children to school. At the same time, the company continues to sponsor its school materials. To help liven up the spirit of giving, the owners organize a few Christmas parties and loot bags for each of the children.

Milk spoilage has been minimized due to the development of Kalamilk Soaps, which reduce the number of harmful toxins and bacteria released into the environment, potentially harming other wildlife. Aside from this, all the packaging for the soaps is recyclable and biodegradable. All the aromatics used in the production are also eco-friendly and sourced locally.

Although the emergence of milk soaps has been rampant in the industry since the release of Kalamilk Soaps, the owners are happy to become a stepping stone and an eye-opener to companies and small business owners. It contributes to innovative change that significantly impacts the farmers of Baliuag, Bulacan. Nevertheless, they are confident that each product is distinctly unique from one another and addresses a different societal problem.

“We believe that there is only one Kalamilk enterprise; We believe in our products best.”

Interview

Mary Gonzales, Co-founder