Fraser & Neave Holdings Bhd Annual Report 2021

BUSINESS PERFORMANCE REVIEW STRATEGIC OBJECTIVE : ENHANCE REVENUE Key Initiatives Achievements Develop new stream of revenue • Acquired Sri Nona Companies, a leader in the ready-to-cook ketupat segment and No. 2 brand for the oyster sauce in the respective segment domestically. With Sri Nona, we have diversified into the halal packaged food segment. Build existing businesses • Launched six new products in Malaysia, including F&N Sparkling in Apple Barley, Expresso and Honey Lemon flavours; est Cola Brown Sugar; F&N Bandung; and Gold Coin Juara Condensed Milk. F&N Sparkling Apple Barley and Expresso, est Cola Brown Sugar, and F&N Bandung carry the Healthier Choice logo. • Introduced F&N Teh Tarik in East Malaysia, as well as Mango and Madu Kurma flavours of Sun Valley Cordial during Raya, Gawai and Kaamatan Festival. • Enhanced distribution with cash sales vans to serve sub-urban and rural areas as well as to cater for the growing mobile food trucks & roadside stalls during the pandemic period. • Focused on stalls, modern grocers and mini markets within or near residential areas, which were more heavily frequented than other outlets. • Continued to expand our e-commerce business. – Worked closely together with major e-commerce merchants to expand the reach of our products’ reach to a broader audience. – Our flagship online store, F&N Life also serves as a channel for direct engagement with our key customers. – Set up the F&N Life’s fulfilment centre in Kuala Lumpur during 2021 to give our consumers flexible options such as self-pickup and express next day deliveries. • Conducted product launches online; and continued to build relationships with customers and consumers with social media. • Formed new partnerships to drive sales, eg with Touch ‘n Go and McDonald’s. • O$er products in all price tiers to cater to all consumers; and created value packs, eg 1.2L Pek Jimat bottles of F&N Fun Flavours such as F&N Strawberry, F&N Fruitade, F&N Sarsi and F&N Orange at only RM2.50. Growing global footprint • Continued to strengthen our exports to Halal markets. • Promoted and expanded usage of our products via new applications for Food Services and industrial Channels. • Fostered closer collaborations with key OEM customers which results in new products and additional regions. • Expanded to three new export markets: Mozambique, Turkmenistan and Mongolia; while operationalising our first wholly-owned international subsidiary, Fraser and Neave MENA DWC-LLC. 1 Management Discussion & Analysis 077 Fraser & Neave Holdings Bhd ! Annual Report 2021