Innovation

Innovation is central to long-term value creation. We continuously evolve to deliver new and unique product offerings which cater to consumers’ changing needs, for example, towards more beverage choices, flexibility and affordability. Through innovation, we also improve the operational efficiency of our manufacturing processes and better manage our impacts on the environment. Further guided by the ‘circular economy’ principle of decoupling our activities from the consumption of finite resources, we continuously innovate for longer shelf life and better recyclability of our product packaging.

Our 2025 Commitment
Innovation
  • 10% product innovation for commercialised F&N products by 2025

We innovate through an Research & Development team in Singapore to develop new products and eco-friendly packaging that meet evolving tastes and lifestyles. For food packaging, the team collaborates with Nanyang Technological University (NTU). The result is more choice of beverages, in packaging that is fit for purpose.

The goals of R&D at F&NHB are guided by the following principles:

chart-innovation

In FY2020, we produced no less than 10 new products, six of which are healthier options. Among our more innovative packaging offerings were squeeze tubes for TEAPOT condensed milk, and recyclable paper cartons for F&N ICE MOUNTAIN.

We also continuously upgrade our systems and processes with the latest technological innovations for greater operational and environmental efficiencies. Just in FY2020 we invested about RM134 million in various technologies including:

  • Solar Photovoltaic (PV) systems in our Shah Alam, Pulau Indah and Bentong plants in Malaysia with a total capacity of generating up to 10 MWp of energy.
  • State-of-the-art Regional Distribution Centre at Rojana, Bangkok with sophisticated Automated Storage Retrieval System (ASRS).
  • A new manufacturing line in Rojana Plant, Thailand to produce our first milk tablets, Magnolia Milkies.

To promote continuous improvement in productivity, quality, cost, delivery, safety, ethics and environment, we organised an annual competition since 2007, which encouraged manufacturing teams to propose and implement innovative and cost saving initiatives. Participants work in groups and are empowered to implement their ideas. The innovative ideas initiated through the convention have already successfully achieved an average saving/avoidance of RM10 million per annum.