Fraser & Neave Holdings Bhd Annual Report 2020

085 ANNUAL REPORT 2020 03 md&a Complementing online sales, we strengthened our route to market by partnering other merchants as well as F&B outlets with whom we bundled our products. We also penetrated deeper into previously unserved areas throughout Malaysia with pilot van sales to drive impulse purchase, while further expanding the network of customers served directly to cover central Peninsular Malaysia and East Malaysia. During the MCO, we continued to strengthen in-store presence and worked closely with our F&B merchants to introduce combo meals and delivery tie-ups. Tapping on the growing online trends during MCO, we helped our distributors to set up e-selling platforms and organise e-Ramadan Bazaars to boost sales during the Ramadan period. Innovation and excellence in execution enabled F&B Malaysia to protect and grow our market share in key product categories. We maintained our market-leading positions in Malaysia, within carbonated soft drinks category1, isotonic segment2, sweetened condensed milk category3, and evaporated milk category4. We reaffirmed our market leadership with the various awards and accolades won in the year. We won the prestigious Halal Food and Beverage Excellence Award from Halal Development Council, as a testament to our commitment in upholding Halal standards throughout our operations and our contribution towards the development of the nation’s Halal industry. 100PLUS continued with its Golden streak at the Putra Brand Awards in 2019, winning in the Non-Alcoholic Beverages category for the seventh consecutive year. At the same time, 100PLUS also claimed a Gold for Best Marketer in Media & Content Partnership Marketing at CMO Asia Awards 2019 and a Bronze for the Best Use of Influencers at the Effie Awards 2019. Concerted efforts by the Export team also bore fruit and saw F&B Malaysia grow its international sales revenue by 10 per cent. This was contributed mainly by sales to the Middle East, Africa and ASEAN markets. F&B Malaysia demonstrated resilience in overcoming what was undoubtedly one of the most challenging years we have faced in recent times. While the market shrank considerably due to the Movement Control Order (MCO) and its iterations, relentless focus on product and marketing innovation, as well as effective execution targeted at meeting new norms in the marketplace, helped us to ride out the storm. Movement restrictions and social distancing had a significant yet differentiated impact on sales. Coffee shops, cafes, restaurants and hotels ceased operations during the height of the MCO, while demand from petrol marts, convenience stores and traditional trade retailers also fell significantly. In contrast, modern trade outlets continued to enjoy brisk sales as Malaysians were keen to get all their groceries at one go. E-commerce channels also continued to gain traction. Without doubt, the most exciting product introduced during the year was that of F&N Teh Tarik, our ready-to-drink version of the ‘national drink’. We launched F&N Ready-to-Drink Teh Tarik Ori seven months earlier than planned, foreseeing heightened demand following the temporary closure of mamak outlets. The online mamak session organised in conjunction with the launch proved we were right; 667 fans participated in the event, leading to an entry in the Malaysia Book of Records. We also continue to innovate on enhancing our portfolio of healthier options. This led to the launch of F&N ICE MOUNTAIN Sparkling, 100PLUS Zero and OYOSHI Gold No Sugar Premium Japanese Green Tea – all with no sugar. The launch of F&N ICE MOUNTAIN Sparkling in Classic, Lemon and Grapefruit flavours was particularly successful, leading to an increased share of the water segment. We also launched a premium Sunkist Pure in Orange and Lemon Apple flavours. Other than new products, we met the need for greater value through trade- up deals and strategically priced products. This saw us offer extra volume of carbonated soft drinks at no increased cost and introduce value-tier condensed milk such as TEAPOT Extra and Gold Coin Juara. A key highlight was to launch our e-commerce store, F&N Life, enabling us to tap into growing demand online. Due to the exponential growth of sales on this channel, we redirected a considerable volume of products from physical outlets to our virtual store. Being agile and scaling up F&N Life, we delivered our two-year online sales target in six months. Most encouragingly, demand did not taper off with the relaxation of MCO, indicating a loyal and increasing online consumer base. In line with the increased focus on digital marketing, much effort was channelled towards creating impactful content, and we felt validated for our efforts when F&N Dairies won the Best 6-seconds Storytelling Award from YouTube Malaysia Ad Awards in December 2019. Innovation and excellence in execution enabled F&B Malaysia to protect and grow our market share in key product categories. We maintained our market-leading positions in Malaysia, within carbonated soft drinks category, isotonic segment, sweetened condensed milk category, and evaporated milk category. 1 100PLUS Zero 2 F&N ICE MOUNTAIN Sparkling Water – Original, Lemon and Grapefruit 3 F&N Teh Tarik – Ori and Less Sugar 4 No Sugar OYOSHI Gold Kabusecha, No Sugar OYOSHI Gold Sencha 5 Sunkist Pure – Orange and Lemon Apple 6 TEAPOT Squeeze Tube – Plain, Gula Melaka & Pandan 7 F&N Fruit Tree Fresh Reduced Sugar Soursop with Nata De Coco 1 2 3 4 5 6 7