CORE MARKET BEVERAGES Malaysia BUILDING a SUSTAINABLE FUTURE
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FRASER AND NEAVE, LIMITED & SUBSIDIARY COMPANIES ANNUAL REPORT 2018 CORE MARKET BEVERAGES Malaysia BUILDING A SUSTAINABLE FUTURE BEVERAGES MALAYSIA: for its soft drinks plant in Soft Drinks and No.1 Isotonic RESULTS Shah Alam, it expanded its Drink. As the first isotonic drink Despite the overall declining water plant by installing a launched in Malaysia some soft drinks market trend, 600bpm water line, adding 30 years ago, to remain FY2018 marked a turnaround a combi blow, mould and relevant to today’s consumers, for the Beverages Malaysia filling machine, and more 100PLUS continued to reinvent business. This year, Beverages than doubling the capacity itself through innovation and Malaysia revenue was 1% of its Bentong mineral water renovation. Riding on the health higher while earnings surged plant. In addition, the newly- trend amongst consumers, over twofold, thanks to installed aseptic cold-fill PET 100PLUS has been actively lower sugar cost, favourable line at the Shah Alam plant taking part in the sugar foreign currency translation would also further accelerate reduction initiative. Through and positive effect of cost Beverages Malaysia’s careful reformulation, it has control. Key category expansion into new healthier successfully reduced its sugar market share grew as the offerings in the near future. content in its entire fruity range Group stayed focused and of 100PLUS (Orange, Berry, deployed resources to drive ISOTONIC: 100PLUS Lemon Lime and the new our core categories. Isotonic F&N’s flagship brand, Blackcurrant) and earned the and carbonated soft drinks 100PLUS, continued its reign HCS awarded by the Malaysia categories grew in part by the as Malaysia’s No.1 Carbonated Ministry of Health. It further introduction of new products introduced an even healthier and successful marketing option to its original family range strategies. – 100PLUS Reduced Sugar where it has only 4g of sugar This year, leading positions per 100ml, which is 33% less of the Group’s core #1 sugar than 100PLUS Original. brands – 100PLUS, F&N It also launched 100PLUS Sparkling Drinks, OYOSHI, ACTIVE in powder form in small F&N SEASONS and F&N convenient sachets in response NUTRISOY – were upheld as CARBONATED to consumers’ growing demand Beverages Malaysia remained for greater convenience and steadfast in marketing and SOFT DRINKS flexibility. branding initiatives, focused on promoting active and healthy 100PLUS’s continuous living. 100PLUS, for instance, involvement in sports, reinforced the importance of # including sponsorships of hydration while leading active 1 national athletes, major sports lifestyles by offering new events and several national reduced sugar variants, and sports bodies, underscores launching special packaging in its commitment to promoting conjunction with international ISOTONIC active and healthy lifestyles. sports events. It also continued This year, 100PLUS and the to lend support to Malaysian DRINK Badminton Association of athletes as well as regional and Malaysia (“BAM”) signed a national sports events. new two-year sponsorship agreement, extending a To support the Group’s partnership since 2003. expansion strategy, this year Under the new agreement, Beverages Malaysia, held 100PLUS has been named the through F&NHB, continued Official Beverage Sponsor for to build its capabilities and all BAM events and activities, expand its capacity in key * As at September 2018 including the Malaysian Open growth areas. For instance, and the Malaysian Masters. 33 FRASER AND NEAVE, LIMITED & SUBSIDIARY COMPANIES ANNUAL REPORT 2018 CEO BUSINESS REVIEW - BEVERAGES CORE MARKET • Malaysia ENTIRE 100PLUS RANGE IS NOW CERTIFIED WITH THE HEALTHIER CHOICE LOGO Endorsed by the Ministry of Health More importantly, the new deal 100PLUS rolled out 100PLUS would see 100PLUS becoming DAY across major cities in the title sponsor for the Malaysia including Johor national junior circuit and the Bahru, Kuala Terengganu junior inter-state tournaments and Sungai Petani, leading over the next two years. up to the grand finale that was held in Bukit Jalil, Throughout the year, Kuala Lumpur. 100PLUS 100PLUS also supported DAY covered a series of fun and organised several youth activities, including a 5km programmes and badminton Inflatable Obstacle Fun competitions, successfully Run, Zumba sessions and driving brand growth and a special audition in search strengthening equity. of local talent to join as 100PLUS ambassadors in a In addition to badminton, game challenge during the 100PLUS continued to grand finale in Bukit Jalil. In reach out and engage the addition, 100PLUS signed masses by supporting sports a five-year agreement with organisations and sports the Kuala Lumpur Sports events such as the National City (“KLSC”) as its Official Sports Council, the 100PLUS Beverage Partner. With the LIGA PREMIER MALAYSIA, partnership, 100PLUS, along and 100PLUS DAY. As a key with the other F&N beverages, advocate for physical activity are now exclusively available and active living in Malaysia, throughout the KLSC. 34 BUILDING A SUSTAINABLE FUTURE Permanent 100PLUS-branded a fresh new look for its tea to reflect its evolution from drinks booths have also been range. F&N’s use of new being just delicious (“oishi” set-up at the main arenas. aseptic cold-fill technology in Japanese) to a taste that is The deal also included the allowed the brand to adopt a “beyond delicious” (“oyoshi” # creation of a 1,400-metre long trendier, slimmer and appealing in Japanese). Now produced 1 100PLUS-themed cycling PET bottle. Using the new with the new F&N state-of-the- track around the National technology, F&N SEASONS art aseptic cold-fill technology, Stadium. The sponsorships Tea is exposed to just the the unique blend tastes fresher of sporting events and right temperature during and better defined, providing READY-TO- sports organisations provide manufacturing to ensure its the brand with even more opportunities for 100PLUS taste is optimised for ultimate competitive differentiation. DRINK TEA to strengthen its fans’ freshness, thus retaining its connection with the brand. proposition as a healthier and flavourful refreshment TEA: F&N SEASONS AND with antioxidants that is OYOSHI preservative-free. F&N continued to command Malaysia’s RTD tea segment To further enhance its appeal with F&N SEASONS and and differentiate itself in a OYOSHI leading the RTD black crowded tea category, OISHI tea and green tea segments’ embarked on a rebranding awareness and consumption exercise with a new name and frequency, respectively. innovative packaging design INVESTMENT across its entire product Launch of new aseptic This year, F&N SEASONS range. As part of this exercise, cold-fill line * As at July 2018 improved its taste and unveiled OISHI was renamed OYOSHI 35 FRASER AND NEAVE, LIMITED & SUBSIDIARY COMPANIES ANNUAL REPORT 2018 CORE MARKET BEVERAGES Singapore BUILDING A SUSTAINABLE FUTURE BEVERAGES SINGAPORE: wants. Understanding RESULTS the changing needs of Weak consumer sentiments, consumers, 100PLUS regulatory changes continued to provide healthier # and competitive price options with the launch of 1 environment continued to 100PLUS Zero Sugar in weigh down on Beverages March this year. Formulated Singapore’s FY2018 to contain zero sugar and performance. Due to zero calories, 100PLUS ISOTONIC lower domestic soft drinks Zero Sugar is the perfect volumes and poorer export healthier choice for everyday sales, Beverages Singapore consumption. saw its revenue dip 5%. Nevertheless, due to great To build awareness and marketplace execution, drive trial, 100PLUS rolled innovation and creative out its four-month long brand marketing, Beverages ZERO IN ON THE MOMENT Singapore continued to marketing campaign featuring gain market shares and celebrity couple, radio deejay maintained its market Kimberly Wang and actor SOYA leading positions in its core Shane Pow, to promote categories – 100PLUS in the new 100PLUS Zero isotonic, F&N NUTRISOY Sugar. Supported by various in soya and F&N ICE above-the-line marketing MOUNTAIN in water. activities which included Due to lower sales and higher radio, out-of-home, digital marketing cost, Beverages and in-store advertising, Singapore earnings fell. 100PLUS continued to excite consumers with this new Singapore remains one addition. of F&N’s key markets. This year, Beverages Singapore This year also saw a step- continued its emphasis on change in our digital product innovation, focusing marketing to respond to WATER on healthier beverages. It has changing consumer and expanded its portfolio with media trends. This included lower- or no- calories products the successful activation including 100PLUS Zero Sugar, of 100PLUS Zero Sugar F&N Orange Zero, F&N Sarsi #ZeroInSG and #100PLUSsg, Zero, F&N SEASONS White which bagged over 1.6 million Chrysanthemum Tea No Sugar YouTube views. and F&N NUTRISOY High Calcium Reduced Sugar Fresh To further drive awareness, Soya Milk with Walnut, all 100PLUS conducted endorsed as ‘Healthier Choice’ extensive sampling exercises by Singapore’s HPB. by deploying Hydration As a fervent advocate of active Champions on the city streets lifestyles, 100PLUS continued ISOTONIC: 100PLUS in the CBD area. Equipped its support of several major As Singapore’s No.1 with their trusty 100PLUS sporting events including the Isotonic brand, 100PLUS Zero Sugar drinks dispenser, OCBC CYCLE, STANDARD has always stayed ahead these Hydration Champions CHARTERED SINGAPORE of the curve by focusing on kept consumers refreshed MARATHON, SGX BULL consumers’