Fraser & Neave Holdings Bhd Sustainability Report 2021

• Increasing O*erings of Healthier Choice Products Our product development team continued to introduce healthier choice product options, in responding to consumer demands for healthy products. Among the new healthier additions are F&N sparking range, est Cola Brown Sugar, F&N Bandung, BEAR BRAND Gold Acerola Cherry Milk and the reformulated F&N Magnolia Choc Malt with 50% less sucrose. Read more in “Nutrition”, on pages 067 to 069 of this SR. • Increased Convenience We o*ered di*erentiated product packaging to cater to the di*erent needs of consumers. This year, due to demand for greater convenience and flexibility, we have launched the F&N ICE MOUNTAIN Mineral Water in 6L bottle size in Malaysia, and the TEAPOT Sweetened Condensed Milk in 500g stand-up pouch, and 25g duo sachet. To encourage the consumption of milk in Thailand, we have introduced a new single serve pack size for F&N Magnolia Lactose-free – 180ml for Plain flavour, 170ml for Vanilla White Choc and 170m for Peppermint Brownie. • Sustainable Packaging We have rolled out a sustainable packaging solution for our F&N ICE MOUNTAIN Drinking Water where it is made from recyclable paper carton packaging. The caps are also bio-based, made from sugar cane. Read more in “Packaging”, on pages 109 to 110 of this SR. Process Innovation Our R&D and manufacturing teams constantly seek out the most up- to-date technical and scientific advances to improve the e+ciency of our operations while minimising environmental impacts. We also encourage a ground up empowerment of employees and encourage them to come up with ideas to improve our working processes and increase e+ciency. Cultivating Innovative Culture & Mindset To promote continuous improvement in productivity, quality, cost, delivery, safety, ethics and environment, F&N Dairies Thailand organised its annual World Class Manufacturing – Excel as One Convention 2021 on 25 November, which encouraged manufacturing teams to propose and implement innovative and cost saving initiatives. The innovative ideas initiated through the convention have already successfully achieved an average cost saving/avoidance of THB26.3 million per annum. ThaiBev also organises the WOW (Way of Work) Award competition as a platform for employees within the ThaiBev Group to present projects with new concepts, business models, or processes that will support organisational e*ectiveness, such as cost reduction and e+ciency gain. WOW competition also fosters corporate culture and encourages collaborative teamwork among the team members. Below are some of the winning projects by F&NHB: 1 Thailand: Digital platform for milk farmers Read more in “Supply Chain Stewardship”, on page 062 of this SR. 2 Thailand: TEAPOT SCM Duo Sachet Our team in Thailand initiated an innovative idea to utilise the surplus capacity of one manufacturing line by modify the existing line to produce a new packaging format for Sweetened Condensed Milk. Instead of purchasing a new machine at THB10 million, this project involves a substantially smaller investment of modification at THB3 million, with the strong collaboration across multiple teams. With the successful implementation of this idea, this new, first-in- the-market packaging format – 25g Duo Sachet is introduced to Thai consumers who look for convenience especially during traveling and social activities like picnic. Within the first few months of launch, this product has received great response from consumers. 3 Malaysia: Chilled Plant Concern over quality of our incoming fresh milk due to the limitation of shelf life has elevated during shipping delays, leading to an ever-changing production plan of chilled line at Pulau Indah plant. The lockdown period in Malaysia has further impacted production hours and costs. With this, the team has proposed and implemented a project: • To reduce carbon footprint and achieve energy savings by optimising the freezer temperature • To improve production yield through simplifying process and better control of materials • To facilitate smart production planning through cross-functional collaboration • To simplify work through digitalisation of record documentation Through this project, the team has achieved cost savings of > RM1.3 million per annum with just changing the way of work, without any additional investment. Responsible Product Stewardship 057 Fraser & Neave Holdings Bhd ! Sustainability Report 2021