Fraser & Neave Holdings Bhd Annual Report 2019

A N N U A L R E P O R T 2 0 1 9 03 Management Discussion & Analysis 067 VALUES & CARING FOR STAKEHOLDERS ➧ Improved cost efficiencies through various initiatives to reduce consumption of resources, improve productivity and/or enhance product quality ➧ Reduced cost to market through collaborations with trade partners and key customers as well as serving some larger outlets directly ➧ Introduced value products in smaller pack sizes and economical packaging to meet consumers’ and customers’ distinct needs ➧ Improved distribution points through focusing on strengths of respective distribution channel ➧ Clear deployment of strategies in each category to drive volume and profits contributed to sales growth in all our core categories ➧ Strong relationships with key business partners to win in the markets ➧ Successful applications in formulating/reformulating new and existing products which are healthier and better ➧ Enhanced in-home penetration through the launch of innovative product format such as squeeze tubes ➧ Investment of various capital expenditures to better equipped ourselves to meet consumers’ needs and counter challenging operating environment 2019 HIGHLIGHTS ➧ Continuous improvement in production automation and upskilling of competency focused workforce ➧ Insourcing and forming of new strategic partnerships ➧ Cost reduction initiatives across all facets of operations, including sourcing of materials, marketing, logistics and distribution, and manufacturing ➧ Accelerate brands growth in domestic markets and abroad through disciplined portfolio management across different channels ➧ Strengthen our reach to consumers via expansion of distribution networks and strategic collaborations with ThaiBev Group ➧ Optimisation of data to enhance effectiveness and efficiency across the value chain ➧ Continuous effort in developing healthier products as well as extension to adjacent categories to meet the evolving needs of our consumers ➧ Develop an integrated and sustainable dairy farming business model as the fourth pillar of growth ➧ Scale up digitalisation across our businesses, including establishing e-Commerce platform and digital-led marketing initiatives PRIORITIES FOR 2020