Fraser & Neave Holdings Bhd Annual Report 2019

WWW . F N . C O M . M Y 082 F R A S E R & N E A V E H O L D I N G S B H D business review > FOOD & BEVERAGES THAILAND A lthough economy in Thailand is projected to grow at a slightly higher rate of three per cent in 2020 versus the previous year, external and domestic headwinds remain. Furthermore, as of October 2019, the Thai Government has further increased the sugar tax on beverages. Nevertheless, we remain positive on our operations in Thailand, given the strong brand equity and product portfolio, supported by our pipeline of innovations, including adjacent products. We believe the strong foundation that we have laid in the past, investment in brand and new product launches will help to drive our organic growth in F&B Thailand. Marketing Highlights F&N MAGNOLIA Expanding our portfolio of UHT products, F&N Magnolia launched a range of lactose-free milk in April 2019. Catering to those who are lactose intolerant, F&N Magnolia Lactose-free milk is available in 400ml and 946ml cartons and comes in three flavours – Peppermint Brownie, Vanilla White Choc and Plain. An extensive online campaign was complemented by in-store sampling, which contributed to F&N Magnolia achieving the third position in the lactose-free segment by the financial year end. Meanwhile, we also added salted caramel variant to our already successful line-up of plain and chocolate flavoured milk under the F&N Magnolia Plus Ginkgo range. The all new F&N Magnolia Plus Ginkgo Salted Caramel flavour contains Ginkgo biloba extract and is high in Vitamin B12 which are proven to be beneficial to brain health and can help strengthen memory. The drink also has up to 30 per cent of calcium to help maintain strong and healthy bones. The F&N Magnolia Plus Ginkgo Salted Caramel range is currently available across Thailand in 180ml cartons and can be purchased individually or in packs of four. OUR JOURNEY AHEAD In terms of coverage, we seek to collaborate more closely with the ThaiBev Group to distribute our products more extensively across the length and breadth of the country. Meanwhile, we will strengthen our engagement with the food service channel in Cambodia and Laos through a loyalty programme and further expand our sales coverage to more regions upcountry. Similarly with Malaysia, FY2020 is set to be a year of exciting new product offerings for Thailand. Folllowing the very encouraging response to our sweetened beverage creamer in 2kg pouch, we will be launching TEAPOT and CARNATION evaporated milk in 1kg pouch in the first quarter of FY2020. A new variant for TEAPOT Tube – Matcha flavour will also be available next year. New products in FY2019 2 1 3 4 5 1 TEAPOT Sweetened Creamer Squeeze Tube – Caramel 2 F&N Magnolia Lactose Free Milk Product – Peppermint Brownie 3 F&N Magnolia Lactose Free Milk Product – Vanilla White Choc 4 F&N Magnolia Lactose Free Milk Product – Plain 5 F&N Magnolia Gingko Plus Salted Caramel Milk FOOTNOTE: F&N Dairies (Thailand) Limited ranked first as a manufacturer in both value share and volume share in total Condensed Milk Market since 1 August 2016 to 30 September 2019. The Nielsen retail index report covers Supermarkets, Hypermarkets, Convenience Stores and Traditional Trades.