Fraser & Neave Holdings Bhd Sustainability Report 2020

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, towardsmore 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. Over the past year, we launched new healthier choice products and more convenient packaging to meet the diverse needs of our customers. We have also been implementing employee-driven innovative manufacturing processes that increase productivity and improve environmental performance. INNOVATION & CREATION in terms of products, processes, packaging and sensory science (a scientific method of measuring and interpreting consumers’ response to prototypes/products based on the senses of taste, smell and touch/texture). SCIENTIFIC ADVANCES for application in our processes and products. TECHNICAL DEVELOPMENTS that support quality improvement and cost optimisation. QUALITY PRODUCTS that meet food safety standards. REGULATORY COMPLIANCE of our local and export business. Our Approach Our Research & Development (R&D) Unit in Singapore is supported by teams in Malaysia and Thailand. The unit leads efforts for continuous improvements to our product formulas according to changes in consumer preferences and the regulatory environment, while searching for ways to improve products’ functional benefits and shelf-life. F&N also collaborates with Nanyang Technological University (NTU), through the F&N-NTU F&B Innovation Lab in Singapore, to foster research that will result in better food packaging and the conversion of spent produce from food processing into valuable resources. The goals of R&D at F&NHB are guided by the following principles: Our Target To invest in product and process innovation to increase our product range, and improve efficiency and productivity. Our Performance in 2020 We have invested in product and process innovation to increase our product range, and improve efficiency and productivity. OUR INNOVATION FRAMEWORK PRIORITY AREAS Continuous improvement to deliver high quality innovative products to consumers. More new products to expand our target consumer groups. EXTERNAL COLLABORATION Collaborate with authorities such as the Ministry of Health (MoH). Federation of Malaysian Manufacturers (FMM) and Thailand’s Food and Drug Administration (FDA) to adhere to food safety regulations and support national health priorities. Collaborate with research institutes to access cuttingedge research and scientific studies to discern the efficacy of our products. INNOVATION CULTURE Develop products based on scientific research, consumer insights and tastes relevant to evolving Asian lifestyles. Constantly refine our products to meet the changing needs of consumers and ensure consistent delivery of good taste and the right nutritional values. R&D PRINCIPLES INNOVATION Driving Economic Value 044 FRASER & NEAVE HOLDINGS BHD