Fraser & Neave Holdings Bhd Annual Report 2021

KEY FOCUS AREAS • Protect the health and safety of our employees • Inventory management to ensure on-time performance by suppliers • Ensuring enhanced productivity to meet customer service level • O$ering products & packaging that cater to consumption at home • Maintaining brand visibility with optimal spend • Further strengthening of customer relationships • Build our online presence to connect more e$ectively with consumers COVID$19 IMPACT • Thailand was not spared from global supply chain disruptions • Due to a shortage of shipment containers, ocean freight charges increased • Families took to cooking at home as dining outlets were closed during lockdown, thus decreasing sales in the HORECA channel, including hotels, restaurants and cafes, while increasing sales of products consumed at home • Further acceleration in online shopping, which was increasing even before the pandemic The operating landscape was similarly challenging in Thailand, with COVID-19 cases increasing drastically from the second half of the financial year. Added to this, a weakening Thai Baht meant a sharp increase in cost of production further squeezing profits. Yet, domestic demand remains resilient in Thailand. The team was able to sustain a commendable performance of high sales through e$ective loyalty and promotional programmes and continuous e$orts to expand distribution coverage. F&B Thailand also increased its share in all core segments despite overall market decline. 068 B u s i n e s s R e v i e w FOOD & BEVERAGES Thailand