Fraser & Neave Holdings Bhd Annual Report 2021

FOOD & BEVERAGES Malaysia KEY FOCUS AREAS • Protect the health and safety of our employees • Ensure uninterrupted supply of raw materials to support production • Analyse customer behaviour and adapt sales & marketing strategies accordingly to maintain market leadership • Re-engineer our products & packaging to meet evolving tastes and expectations of consumers • Build our online presence to connect more e$ectively with consumers • Integrate Sri Nona as part of F&B Malaysia, serving as a platform to expand into more halal food segments COVID$19 IMPACT • Supply chains have been disrupted due to production and logistics challenges • Freight and warehousing charges have increased significantly due to worldwide container shortage • Reduced demand from most channels – particularly dine-in and on-the-go outlets • Increased demand for food and beverage that cater to home consumption • Increased online shopping and interaction The year was without doubt tough for F&B Malaysia, with sales shadowing the trajectory of Covid-19 incidence in the country, and profit being impacted by the cost of commodities. We worked closely together to Reimagine and find ways on how can we do things di$erently and look for ways to pivot our business especially in the ever-changing pandemic environment – through, for example, new routes-to-market, new marketing strategies and new ways of connecting with customers and consumers. Performance was also boosted significantly by the addition of halal packaged food into F&B Malaysia’s portfolio, following the acquisition of Sri Nona companies in January 2021. 076 B u s i n e s s R e v i e w