Fraser & Neave Holdings Bhd Sustainability Report 2019

Healthier Options We invest heavily in the development of healthier products and in extending product options to meet the expectations of different types of consumers. Over the past 15 years, we have made significant efforts to reduce the sugar content across our range of beverages: in 2004, our beverages contained on average 9.5g of sugar per 100ml, and this has fallen by over 41% to 5.2g per 100ml in 2019. This year, we carried out a reformulation exercise on our beverage portfolio, to accelerate our mission towards improving the health and well-being of Malaysians. Today, about 90% of our RTD beverages sold are healthier options (below the sweetened beverages excise duty threshold). More importantly, consumer responses to our reformulated products have been very positive. More information on our healthier options, including details of products with the ‘Healthier Choice Logo’, can be found in the ‘Consumer Health & Safety’ chapter. F U T U R E R E A D Y I N V E S T M E N T S Increased Convenience We offer differentiated product packaging to cater to the different needs of consumers. This year, due to demand for greater convenience and flexibility, we launched the F&N Sweetened Condensed Milk Squeeze Tube and single serve ‘Stix’. Besides being portable and easily stored, these options provided more control over portion sizes, hence contributing to consumer health and safety. We are conscious of our responsibility to manage the environmental impacts associated with our product packaging. We utilised innovative processes to reduce the Polyethylene Terephthalate (PET) resin used in packaging of key products (as detailed on pages 040 and 076), and continuously explore solutions in reducing our post-consumption waste (as detailed on page 059). PROCESS INNOVATION Our R&D and Manufacturing teams constantly seek out the most up-to-date technical and scientific advances to improve the efficiency of our operations while minimising environmental impacts. Over the years, we have implemented innovative technologies to reduce post-consumption waste and automate processes to enhance efficiency. 200 bpm drinking water line a nd wa r ehou s e a t Ko t a Kinabalu Industrial Park (KKIP), Sabah, Malaysia Sophisticated Automated Storage Retrieval System (ASRS) for our new warehouse at Shah Alam plant, Malaysia New product development transformation programme, i n c l u d i n g r e f o rmu l a t i n g products with lower sugar and new product packaging Solar roofing to generate renewable energy at Rojana Plant, Thailand This year, we have invested approximately RM150 million in capital expenditure to elevate our product innovations and drive cost competitiveness. Process innovation projects implemented are described in our Annual Report 2019, and include: S U S T A I N A B I L I T Y R E P O R T 2 0 1 9 Delivering Value 039