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NEW MARKETS

Indonesia 47 47 48 49

Advancing Strategically, Growing Sustainably. 47

NEW MARKETS (A) product offerings and entry into new New Markets FY2017 performance YFI’s presence in Indonesia helps cities were supported by marketing varied across geographies, where each propel the Group’s presence in and sales programmes such as market presented different consumer this key growth market which has participation in car free day activation dynamics and a different outlook, a population of more than 260m and consumers activation during but increasing level of competitive people and a fast-growing emerging fasting month to drive trials and intensity. Despite that, across the middle-class. recruit consumers. geographies, our core brands, 100PLUS and OISHI, had another strong year. PERFORMANCE Moving forward, F&N will continue Overall, New Markets FY2017 revenue F&N’s investment in YFI heralds its to seek growth through investment improved 74%, led mainly by strong next phase of growth, as it boosts the in our brands and extend route-to- volume growth in Indonesia and Group’s capacities and capabilities market capabilities, and by strategic Myanmar. and deepens its presence in acquisitions to broaden and deepen high-growth markets of Indonesia our footprint in Indonesia. The focus on SEA region remains a key and Indochina. A -based part of F&N’s march toward becoming company that manufactures, markets (B) MYANMAR a leading F&B player in ASEAN. Since and distributes canned beverages The effect of unfavourable weather 2015 when the Group unveiled its in Malaysia, YFI also exports to conditions, socio-economic Vision 2020 business plan, F&N has Indonesia and Cambodia, under the instabilities, and an increasing identified Indonesia, Myanmar, Thailand DAYDAY brand. Besides securing competitive landscape in Myanmar and Vietnam as its key new markets; as YFI’s production capacity in the fast- have impacted disposable income well as identified core brands to capture growing, non-carbonated beverages and weakened consumer sentiments. clearly defined market opportunities in segment, teaming up with YFI also Accordingly, this has led to a these new markets to grow its brands offers an increased opportunity for weakening of the carbonated soft and presence. F&N believes that the the distribution and marketing of drinks and isotonic segments in consumer fundamentals in these markets our brands in Indonesia and other Myanmar. Nonetheless, with the are promising as the SEA region presents Southeast Asian markets. Together country’s growing middle-class a sizeable potential with over 600 million with YFI, the Group will benefit from population and its government’s population. greater scale and from the broader recent efforts in strengthening its portfolio of brands, and strengthen legal and regulatory framework, Since its entry into New Markets, F&N’s position as a leading F&B Myanmar will continue to present F&N has been introducing products that player in ASEAN. immense opportunities for the are of the highest growth categories Group. and consumer opportunities. Across This year, the Group has been the various regional markets, its core focusing on consolidating its PERFORMANCE brands of 100PLUS, F&N SEASONS operations in Indonesia, including Since the first introduction of and OISHI are now available for sale. streamlining its diverse portfolio 100PLUS Original and 100PLUS Through activation events and strategic of differentiated brands, which it Lemon Lime, 100PLUS has grown sponsorships, F&N was able to gain would strategically deploy to capture from strength to strength, to become brand awareness and product trials. market opportunities in Indonesia. the No.1 isotonic drink in Myanmar. In addition to organic growth, it will also Riding on DAYDAY’s popularity in the Leveraging 100PLUS’s strong seek growth through selective acquisition Sumatra cities, the Group has been brand equity, this year, the Group so as to leverage the emerging middle- expanding its product offerings in expanded its beverage offerings class opportunity. This year, it further Indonesia to include 100PLUS and in Myanmar to include 100PLUS added about 7.79% stake in Vinamilk, F&N Sparkling Drinks. ACTIVE, a non-carbonated variant giving it a strategic position in the largest of 100PLUS and 100PLUS Original, dairy company in Vietnam. As at FY2017, In addition to expanding its product in 390ml PET. The launch was the Group owned about 18.74% of offerings in Indonesia, F&N has supported by aggressive on-ground Vinamilk. For Indonesia, F&N acquired also teamed up with YFI to expand activations and sponsorships, full control of Yoke Food Industries Sdn its presence in other key cities like focusing on sports-related campaigns Bhd (“YFI”) in December 2016. Jakarta and Surabaya. The additional targeting younger generations.

Fraser and Neave, Limited & Subsidiary Companies // Annual Report 2017 48

CEO BUSINESS REVIEW • BEVERAGES NEW MARKETS

In addition to the SEA Games While recovery in the beverage sponsorship, 100PLUS continued sector is expected in the new year, NEW to raise its brand visibility and it is also expected to be highly reinforce 100PLUS as the enabler competitive with new brands and PRODUCTS for active lifestyles by supporting new variants entering the market some of the nation’s major with higher media spend. running events, such as the YOMA INTERNATIONAL MARATHON in F&N seeks to leverage this Yangon, the MANDALAY MAYOR’S trend, with 100PLUS prominently RUN in Mandalay, the TAUNGGYI featuring the Healthier Choice MARATHON in Shan, and the credential on front-of-pack and in BAGAN INTERNATIONAL RUN in communications, reinforcing its Bagan. As the Official Partner of image as the healthier soft drink the Myanmar Football Federation, suitable for all occasions. 100PLUS organised the MFF U-15 100PLUS Cup 2017 tournament, PERFORMANCE the biggest youth football 100PLUS has been launched in competition tournament in Myanmar, Thailand since February 2015, for youths under the age of 15. as the first mover in hybrid category. 100PLUS offers the increasingly Riding on 100PLUS’s success, health-conscious Thai consumers both the functional benefits of this year, the Group introduced rehydration and replenishment of its vibrant and fun-tasting range of lost fluids, minerals and energy in F&N Sparkling Drinks, as well as the body, as well as the refreshing TEAPOT GOLD, its premium range sensation of a lightly carbonated of canned milk, to good response. soft drink. As a relatively new entrant, 100PLUS stepped up While F&N expects competition in its efforts to educate consumers Myanmar to intensify further, it is on its benefits, increase brand moving forward in 2018 with its visibility and strengthen its position strategy to seize an even larger as the healthier alternative to share. F&N looks to build and carbonated soft drinks for everyday broaden its product offerings, consumption. as well as deepen and extend its route-to-market capabilities to Following FY2015’s successful fortify its position in Myanmar. launch of 100PLUS Original and MYANMAR 100PLUS Lemon Lime which was (C) THAILAND (SOFT DRINK) supported by a massive nationwide The FMCG industry in Thailand campaign, 100PLUS continued to One of the key marketing faced a tough year in 2017 ride on the positive momentum to campaigns this year was the following the passing of King extend brand visibility and strengthen sponsorship of the 29th SEA Bhumibol Adulyadej of Thailand. its position as a functional soft Games. As the official isotonic drink The overall sentiment of consumers drink. Tapping into the increasingly sponsor, 100PLUS extended its has been weak with consumption popular trend of cycling, 100PLUS GO FOR GOLD campaign which frequencies declining across all ran a nationwide consumer was implemented in 2013. The sectors of FMCG. Accordingly, promotion BIKE IN JAPAN from campaign highlighted the national the non-alcoholic ready-to-drink March to May 2016 and stepped team, using online and on-ground market in Thailand saw a decline up the campaign to expand to more activations, to rally support for the of 5% in volume and in value, occasions beyond sports with this Burmese athletes. up to July 2017. year’s ADVENTUROUS AND FUN

Advancing Strategically, Growing Sustainably. 49

ACTIVITIES IN NEW ZEALAND Berry helped support brand its strategic priority was to focus from February to May 2017. share, 100PLUS also continued to on excellence in marketplace In addition, 100PLUS extended its successfully build on its health image, execution. To support the effort, flavour offerings by rolling out a new outperforming diet carbonated soft FNV upgraded its IT infrastructure ‘Berry’ flavour in February 2017, drinks in all brand health KPIs. and implemented an integrated to broaden user base and induce warehousing and delivery system. trial. The launch of 100PLUS Other brand building activities The new setup also allowed FNV to Berry was highlighted through an included a television commercial have its own direct sales workforce integrated marketing campaign aired in September 2017, strategic to effectively execute its sales which included television and media placements to boost top-of- strategy. cinema commercials, print and mind, as well as event sponsorships online advertising, in-store sampling, to drive trials. This year, 100PLUS This year, 100PLUS shared in events and sponsorships. supported 39 running and cycling the festive spirit by introducing events in Thailand, and has become a Tet-themed festive pack for Boosted by strong consumer the preferred beverage partner 100PLUS Original flavour. Focusing interest and feedback, both trade of event organisers, successfully its publicity on F&B outlets, and consumer off-take achieved reinforcing its position as the drink- supermarkets, schools and sports significant increase over the five- of-choice for those who lead active clubs in Ho Chi Minh City, Can Tho, month period. Not only has 100PLUS lifestyles. Hanoi and Vung Tau, 100PLUS saw very good demand during this In the new financial year,100PLUS festive period. will continue to strengthen its brand NEW position of being the healthier To reinforce 100PLUS’s active soft drink of choice, and broaden lifestyle proposition, the brand PRODUCT consumption opportunities beyond continued to support many sports sports to everyday occasions. and lifestyle events such as the Ho Chi Minh City’s Media Futsal (D) VIETNAM Tournament, Tan Son Nhat Golf Vietnam continues to present huge Tournament, Dam Sen Theme growth potential for F&N, with its Park Lion Dance Contest and the projected GDP growth rate averaging Danang International Marathon 6% in the next three years, a young 2017. In addition, 100PLUS also population, rising middle-class and sponsored the Ho Chi Minh City increasing urbanisation. Student Union to hydrate more than 40,000 students from 98 To lay the commercial foundation high schools, as they prepared for for business expansion in Vietnam, their final examinations. 100PLUS the Group incorporated F&N Vietnam is also the exclusive isotonic drink Limited Liability Company (“FNV”) partner of Jump Arena, the very in August 2016, to extend its first trampoline park and Vietnam operations beyond the functions Basketball Academy in Ho Chi Minh of a representative office (set up City, Vietnam. in June 2015). FNV currently distributes, markets and conducts To date, FNV’s brand team has trading of non-alcoholic beverages attained over 53,000 followers in in the country. Facebook, with a unique reach of 12 million people. This outreach, PERFORMANCE coupled with an active online 2017 was a year of organisational presence, further amplified 100PLUS THAILAND improvements and consolidation. as a brand to build a more inclusive With the establishment of FNV, 100PLUS community.

Fraser and Neave, Limited & Subsidiary Companies // Annual Report 2017