34 Fraser and Neave, Limited & Subsidiary Companies Annual Report 2020 CEO Business Review Beverages (Soft Drinks and Beer) CORE MARKETS • Malaysia • Singapore • Myanmar POWER OF OUR ENDURING BRANDS 35 36 Fraser and Neave, Limited & Subsidiary Companies Annual Report 2020 CEO Business Review BEVERAGES (Soft Drinks and Beer) The new, zero sugar CORE MARKETS variant of 100PLUS F&N launches direct-to-customer • Malaysia • Singapore 100PLUS Zero online site • Myanmar F&N LIFE Beverages F&N ICE MOUNTAIN Malaysia Sparkling Water now in Malaysia FY2020 PERFORMANCE Amidst difficult market conditions in Malaysia, our largest market for Beverages recorded weaker performance this year. While we delivered on product 100PLUS innovation and invested in effective remains Malaysia’s No.1 in-market activities during festive periods, Carbonated Soft Drink which fuelled top line growth in the and No.1 Isotonic Drink brand first half of this fiscal year, the full-year performance has been impacted by the COVID-19 pandemic. As the pandemic spread in March, the various stages of nationwide lockdowns impacted on-trade sales in the second half of the year. Beverages Malaysia FY2020 revenue guided by our mission to enhance quality It also conducted above- and below- declined 11.8% yoy to $291.8m, from of life and contribute to a healthier future the-line activations, including holding $330.8m previously. Despite savings from as we deliver high quality products to all roadshows to spread festive cheer in its cost mitigating measures, operating profit Malaysians. annual carnivals held in four locations declined 8.8%, to $23.1m. The lower nationwide. profit was due to lower sales and higher ISOTONIC: 100PLUS advertising and promotional spending in 100PLUS, F&N’s flagship brand and The growing awareness and demand support of new products. Malaysia’s No.1 Carbonated Soft Drink for healthier products prompted the and No.1 Isotonic Drink brand, continued exclusive launch of 100PLUS Zero in By the end of the third fiscal quarter, to cement its position as the enabler of 7-Eleven, Malaysia this year to great Malaysia started easing certain restrictions, active lifestyles through its support of a response. This came after its very and we saw some retail outlets opening series of sports sponsorship deals. These successful launch in Singapore in again. Post-MCO, we have seen sponsorship included supporting our the previous fiscal year. As a result domestic and export volumes recovering. national athletes, major sports events of overwhelming demand, we have Although economic activities are gradually and several national sports bodies. This also made 100PLUS Zero available in normalising, it is still too early to conclude year, 100PLUS extended its partnership general and modern trade starting if such demand is sustainable. with the Football Association of Malaysia August 2020. (“FAM”) for another year until 31 Despite a challenging year, the Group’s December 2020. 100PLUS is a long-time In November 2019, 100PLUS was able to leading positions of its core brands supporter of football development in get over 10,000 Malaysians on their feet 100PLUS, F&N SEASONS, OYOSHI Malaysia, and is the official hydration with an active lifestyle event, 100PLUS and F&N NUTRISOY in Malaysia were provider for major football and futsal AKTIFKAN MALAYSIAKU. The three- maintained, as Beverages Malaysia kept events across Malaysia. A fervent part nationwide call to an active lifestyle up marketing and branding initiatives, advocate of sports development and started in Kota Kinabalu, followed by focusing on promoting active and healthy active lifestyles, 100PLUS will continue Kuala Terengganu, with its finale flag- living. The Group is confident that our its support and involvement in sports, off taking place in Kuala Lumpur at robust plan for sustainable growth will including FAM-related competitions, Bukit Jalil National Stadium. 100PLUS enable us to meet the challenges ahead. programmes and activities in the country. AKTIFKAN MALAYSIAKU was a call for We will continue to lift efficiency across an active lifestyle among Malaysians our entire value chain and reinvest our To generate excitement, 100PLUS also and aimed to encourage more to start realised improvements into growing our rolled out limited-edition packaging in living an active lifestyle and giving their business sustainably. We will remain celebration of the 2020 Chinese New Year. 100% in everything they do, fuelled by POWER OF OUR ENDURING BRANDS 37 100PLUS. The event provided sampling The Group also widened the offerings for Since the escalation of COVID-19 opportunities and successfully drove its water brand – F&N ICE MOUNTAIN. outbreak, F&N Singapore stepped up engagement and conversion. This year, it introduced three new bubbly with food and product donations to the and delightful flavoured variants to local community. Recipient organisations During the nationwide lockdown its sparkling water range – Original, included various local charities, medical due to the coronavirus, 100PLUS held Lemon and Grapefruit. These new institutions and food banks. The Group virtual workout sessions, conducted by additions offer consumers a carbonated will continue to support and provide aids, professional trainers, to help consumers water that is both affordable and healthy, donations and sponsorship as this health achieve a healthier mind and body. with no sugar and zero calories. crisis evolves. These free, online sessions, which included HIIT and dance sessions, ISOTONIC: 100PLUS were part of 100PLUS’ month-long Singapore’s No.1 isotonic brand, campaign to increase brand visibility 100PLUS, remains the isotonic drink and top-of-mind awareness. of choice for consumers. It has been Beverages supporting active lifestyles over the DIGITALISATION OF SALES years through sponsorship and AND COMMUNICATION Singapore sporting events such as the STANDARD The digital transformation at F&N CHARTERED SINGAPORE MARATHON, continues apace. To meet the evolving FY2020 PERFORMANCE OCBC CYCLE and HSBC SINGAPORE needs and purchasing habits of Despite challenging market conditions, RUGBY SEVENS. consumers, the Group unveiled its first Beverages Singapore maintained its leading direct-to-consumer e-commerce store market positions in its core categories As stringent border control and social in Malaysia, F&N Life. The rollout of – 100PLUS in Isotonic, F&N NUTRISOY distancing measures were enforced, this e-commerce store was timely as in Soya and F&N ICE MOUNTAIN in digital media consumption grew. increasing number of consumers are Water. F&N continued to focus on To encourage Singaporeans to stay opting to buy food and drink products building brands and bringing healthy and fit and lead active lifestyles, 100PLUS, online as a result of lockdowns and other innovative products to consumers as we in collaboration with the Sport Singapore social distancing measures due to the navigated the impact of COVID-19. (“SS”), launched the STAY FIT campaign. coronavirus outbreak. With the launch of this online store, consumers in Malaysia can now purchase all F&N’s products, including those launched in this fiscal year, from F&N Life. This e-commerce store is another alternative to other e-commerce sites such as Lazada and All natural, premium non-GMO beans Shopee for fast and easy access to F&N products. F&N NUTRISOY fresh soya milk with real oats & quinoa Riding on this e-commerce platform, the Group rolled out a marketing campaign – GERAI RASA RAYA (Taste of Raya) – to put Malaysians in the festive spirit of Ramadan during the MCO lockdown. This campaign aimed to bring families together to recreate popular F&N Ramadan delights at home with the ICE MOUNTAIN help of recipes accessible on F&N Life’s has a new sustainable app and website. In addition, consumers & recyclable paper could purchase their favourite F&N products and have them delivered free packaging of charge, with no minimum order. Gold NEW PRODUCTS OYOSHI This year, the Group added two new added two new sugar-free offerings to its OYOSHI Gold sugar-free variants - #STAYFIT portfolio – Kabusecha and Sencha. Kabusecha and Sencha with These 380ml green tea drinks are sugar-free, and are brewed with 100% 100PLUS imported authentic Japanese green tea leaves from Makinohara Plateau, Japan. 38 Fraser and Neave, Limited & Subsidiary Companies Annual Report 2020 CEO Business Review BEVERAGES various uses of F&N NUTRISOY in and introduced a new range of cans to cooking and dessert preparation. its water portfolio. This was accompanied (Soft Drinks and Beer) by a flavour extension of the Peach CORE MARKETS F&N NUTRISOY continued its partnership variant. A festive campaign anchored • Malaysia • Singapore with SHF through its sponsorship of the by a month-long Orchard Road pop- foundation’s two key events – GO RED up was successfully executed to drive • Myanmar FOR WOMEN 2020 and WORLD HEART consumer awareness and trial. F&N ICE DAY 2020 – to promote heart health MOUNTAIN sparkling water maintained and educate Singaporeans to lead heart high visibility with consistent consumer The campaign involved live workout healthy lifestyles. As a pledge of our touchpoints to drive purchase and gain sessions, which included yoga, kick support, all F&N NUTRISOY Fresh Soya market share. boxing, HIIT, etc, conducted by Milk packaging bears the SHF logo. professional trainers and SS brand In August, as a champion of ambassadors. To reach a wider audience, JUICES: F&N FRUIT TREE FRESH sustainability, F&N ICE MOUNTAIN 100PLUS also worked with fitness With more consumers opting for launched a new sustainable and influencers and celebrities to create healthier and immunity boosting recyclable paper carton pack version of fitness content on 100PLUS’s social products, the Singapore Team ran a series its drinking water variant. Made with sites, including its own Facebook and of social media posts and put up point- FSC certified carton paper sourced from Instagram pages. These virtual workouts of-sale materials to reinforce the message responsibly managed forests, the new also enabled 100PLUS to stay engaged of staying healthy by consuming F&N packaging also comes with a bio-based with consumers, and emphasized to FRUIT TREE FRESH daily.