F&N Strengthens Its Presence in Indochina

Fraser & Neave Holdings Bhd ("F&NHB" or "the Group") has strengthened the Group's foothold in the Indochina market by securing extended rights from Société Des Produits Nestlé S.A. and Nestec S.A. (Nestlé) as the exclusive manufacturer and distributor for Nestlé's BEAR BRAND sterilised milk in Cambodia.

Nestlé currently engages F&NHB to produce BEAR BRAND sterilised milk for their distribution in Cambodia. Under the new arrangements, F&NHB will now manufacture, as well as distribute and market BEAR BRAND sterilised milk products directly to end consumers in Cambodia, effective 1 March 2023 through to 2037.

This contract expansion is part of license agreements originally granted by Nestlé in 2007 and subsequently renewed in 2015. F&NHB currently manufactures and distributes the BEAR BRAND sterilised milk and BEAR BRAND Gold milk for Thailand and Laos. In addition, the Group also manufactures, promotes, and distributes the CARNATION brand in Thailand, Laos and Cambodia, as well as sells the CARNATION canned milk; IDEAL evaporated milk; and MILKMAID sweetened condensed milk and sweetened beverage creamer in Malaysia, Brunei and Singapore until 2037.

Mr. Lim Yew Hoe, Chief Executive Officer of Fraser & Neave Holdings Bhd, said that the expanded term indicates the confidence Nestlé has in F&NHB and a strategic partnership that allows both companies to generate synergistic values by leveraging each other's strengths in this region.

Mr. Victor Seah, Chairman and CEO of Nestlé Indochina, said, "Our partnership with F&NHB has been fruitful as it benefits both consumers in Indochina and our two companies. Our business partner has effectively manufactured and distributed BEAR BRAND sterilised milk and BEAR BRAND Gold beverages in Thailand and Laos. I am confident that appointing F&NHB to manufacture, distribute and market BEAR BRAND sterilised milk products in Cambodia can create greater synergy and scale, which will ultimately benefit the end consumer. Nestlé in Indochina will continue to work with F&NHB to provide quality products to consumers based on our vision of unlocking the power of food to enhance quality of life for everyone, today and for generations to come."

Mr. Suchit Riewcharoon, Managing Director of F&N Dairies (Thailand) Limited, said, "We are now able to provide our consumers in Thailand, Cambodia, and Laos with end-to-end services, strengthening our regional strategy for BEAR BRAND products. This will enable us to harmonise our trade and marketing activities, providing a seamless and consistent experience for our valued customers. We are excited about this opportunity and look forward to delivering even greater value to our consumers in the region. "

He added that BEAR BRAND sterilised milk would continue to be produced at the Group's Rojana factory, which is the largest canned liquid milk plant in Thailand and ASEAN region. It is also integrated with an extensive Southeast Asian supply chain network through the Rojana Distribution Centre in Thailand to serve customers and future growth in the Indochina region.

"Together with our newly completed milk and plant-based beverages factory in Wang Muang, F&NHB intends to play a much bigger role in the liquid milk segment. As a market leader in the canned milk category, we already have an expansive portfolio of canned milk brands in the region. We are confident that our expertise in the market and commitment to innovation will spur greater growth in this segment," Mr. Lim concluded.