How can a yogurt be associated with innovation? The boutique yogurt brand Matthew’s Choice started from a small store in southern Taiwan, devoted to developing additive-free, all-natural yogurt. Today, it has expanded to 24 stores and penetrated major supermarket chains and coffee shops. Matthew’s Choice is the most collaborative yogurt brand in the market, partnering with five-star hotels, top-tier health centers, premium dessert brands, and popular beverage chains. As the first brand to sell yogurt as a luxury product, Matthew’s Choice prices its products 20% higher than competitors, yet its revenue continues to rise annually, now exceeding NT$500 million, securing its position in the premium yogurt segment.
For Matthew’s Choice, yogurt has always been more than just yogurt; it is a vessel for creativity.
On the day of the interview, we sat down with founder and CEO Matthew Wang at the Dunnan store in Taipei, sipping on a sweet and tangy tomato yogurt drink while reflecting on the entrepreneurial journey of Matthew’s Choice. Looking at the walls adorned with photos of local farmers and their produce, as well as snapshots of Matthew visiting farms and interacting with farmers, one can see their 14 years of persistence in quality.
Matthew, who is approaching the age of sixty, exudes the calmness of a middle-aged man but speaks with the vigor of a young entrepreneur. “People used to consider yogurt as a breakfast or meal replacement, but I believe yogurt should be present in every aspect of life. It’s not just for home; it’s for work, travel, desserts, and beverages,” he said.
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Pioneering the Unsweetened Yogurt Market 14 Years Ago
Taiwan is a small island, but the potential of its yogurt market is vast. Wang noted that while the average annual yogurt consumption per person is 10 kilograms in Japan and 6.5 kilograms in China, it’s only 0.75 kilograms in Taiwan, indicating significant growth potential. He estimates that Taiwan’s yogurt market could reach NT$5 billion.
Before 2010 , while working at Uni-President Enterprises Corporation, Wang observed a growing DIY trend for unsweetened yogurt both locally and abroad, identifying it as a promising market. So, at the age of 45, he left his stable corporate life and rolled up his sleeves to start his life of venture. He traveled to Europe, Japan, Mongolia, and Xinjiang, searching for bacterial strains. “I visited many countries, brought back various strains, and cultured, tasted, and combined them to find the flavor most suitable for Taiwanese palates.”
At that time, yogurt consumption in Taiwan wasn’t as popular as it is today, with sweetened yogurt drinks being the norm. However, Wang sensed that yogurt had significant growth potential. The first innovative and bold decision by Matthew’s Choice was to focus solely on the yogurt market, particularly the niche unsweetened segment, instead of the mainstream drinking yogurt.
The second innovation lay in the product itself and its brand positioning. From the start, Matthew’s Choice used high-quality raw materials, reflecting directly in the product quality. Wang laughed and said, “Actually, many people said we were shooting ourselves in the foot by doing so many things—expensive and troublesome!” For example, while others bought yogurt powder, Matthew’s Choice sourced strains from abroad. They insisted on using organic local produce with zero pesticide residue, setting self-imposed standards higher than national requirements.
Matthew’s Choice carefully cooperates with local small farmers. To ensure a stable income for them, the company created its own “farmer-focus pricing” mechanism. This system allows Matthew’s Choice to purchase crops without haggling, protecting small-scale producers from being squeezed out by channels or merchants and relieving them of price pressure.
To ensure product quality, they set up an internal food safety center to control that quality. In order to reduce plastic and be environmentally friendly, they invested in recycled PET (rPET) packaging, and even upgraded some yogurt containers to higher-cost recycled polyester pellet (recycled PET, rPET) packaging. Over the years, they have achieved remarkable results in plastic reduction.
Their commitment to using high-quality ingredients, supporting local farmers, and reducing plastic is reflected in higher costs and the premium price of their yogurt. Despite the fact that Matthew’s carefully selected yogurt is known for its high price, Wang firmly believes that “there is a market for high-quality yogurt. More consumers will seek good, healthy, and safe food.”
Matthew Wang’s bet paid off. After 14 years of entrepreneurship, Matthew’s Choice has attracted high-income, health-conscious consumers who care about the environment, in the process becoming one of Taiwan’s top three yogurt brands. By 2024, Matthew’s Choice’s revenue had surpassed NT$500 million and continues to grow annually. Brands like the Hsinchu Science Park’s high-tech companies, Lalu Sun Moon Lake, the Hotel Royal Chiao Hsi, STARLUX Airlines business class, top health centers, and luxury salon brand Aveda all feature Matthew’s Choice products.
How Matthew’s Choice Stands Out in the Fiercely Competitive Yogurt Market
The yogurt market is intensely competitive. Market research indicates that in 2020, Taiwan’s overall yogurt and yogurt drink market exceeded NT$6 billion, growing by 5-10%, which clearly shows market growth and competitiveness. Amid this intense rivalry and rapid expansion by competitors, how does Matthew’s Choice manage to stand out?
First, Matthew’s Choice Differentiates and Innovates to Carve Out a Market Niche. While competitors often offer similar products, Matthew’s Choice opts for “co-branding” to establish unique collaborations and external innovation.
For example, the brand teamed up with the dessert brand Le Ruban Pâtisserie to create Hokkaido Snow Cheese, which uses yogurt instead of sour cream and reduces sugar content by 20%. They also collaborated with the popular beverage chain Milksha to develop fruit yogurt smoothies, such as peach yogurt and grape yogurt smoothies, which have been warmly received by the public.
In recent years, Matthew’s Choice has broadened its product lines by entering the probiotic market. The brand has introduced probiotics specifically designed for allergy sufferers and women. Additionally, recognizing the modern trend of increased protein intake, Matthew’s Choice launched Pro+ Protein Yogurt in 2023, a yogurt specifically crafted for fitness enthusiasts.
Beyond product innovation, Matthew’s Choice has revolutionized the customer experience. In order to not only sell customers a yogurt product but also provide a service filled with “ritual feeling,” Wang pioneered the “Five-Star Tasting Experience.” When consumers come to the store, they are first offered lemon water to cleanse their palate, followed by a tasting of unsweetened yogurt paired with locally sourced fruit syrups and handmade slow-roasted oatmeal nuts, concluding with a probiotic yogurt shot.
Matthew Wang emphasizes that purchasing products from Matthew’s Choice is not just a transaction but an “experience.” This approach allows consumers to learn the story of the product from farm to table, helping them discover the flavors that best suit their preferences.
Quality over Rapid Expansion! Matthew’s Choice Establishes a “Yogurt Appraiser” System to Ensure Quality Service in Stores.
In contrast to competitors who quickly open new stores, Matthew’s Choice takes a “slower, more deliberate approach.” Matthew Wang states, “It takes us two years to train our staff for a new store to ensure service quality.” To further guarantee this, Matthew’s Choice has established the “Yogurt Appraiser” system. Internal employees must pass a rigorous examination before they qualify to serve customers in stores.
The evaluation includes blind yogurt tastings, understanding the health benefits of probiotics and yogurt, market trends, and even practical tests on creative yogurt recipes. Wang proudly shares, “Currently, 90% of our store staff have passed the advanced exams.”
Looking ahead, Matthew’s Choice is not slowing down. In the second quarter of 2024, a new factory is set to begin operations, aimed at expanding production lines and diversifying product and distribution channels.
Reflecting on 14 years of entrepreneurship, Matthew’s Choice has overcome its toughest phases. Although challenges remain, Wang firmly believes, “Yogurt is not just a snack; it’s an investment in health.” He envisions Matthew’s Choice bringing more possibilities in the future, hoping to integrate this healthier and more nutritious yogurt into various aspects of people’s lives.
This article has been contributed to AsiaTechDaily.