Malaysian drinks manufacturer Fraser & Neave turns to halal food for growth after buying F&B companies

Fraser & Neave in Malaysia is looking to halal food as its “new pillar of growth” after it bought three food and beverage companies.

The soft drinks manufacturer recently acquired Sri Nona Food Industries, Sri Nona Industries, and Lee Shun Hing Sauce Industries, for up to 60 million ringgit, F&N said in a statement on Tuesday (Jan 19).

“Our latest investment will serve as a platform to expand into more halal food segments and to meet the rising demand for convenience and ready-to-eat food products,” F&N CEO Lim Yew Hoe said.

Sri Nona is best known for its range of ketupat, or rice cakes, and oyster sauce.

F&N said it can now add a food brand to its current portfolio that includes household names such as Seasons and Carnation.

The company will enter the halal food sector after scaling up its e-commerce operations last year as online orders increased amid the COVID-19 pandemic.

E-commerce looks likely to continue to impact retail as Malaysia last week declared a State of Emergency and most states are under renewed movement control orders to help slow the spread of COVID-19.

F&N reported 3.99 billion ringgit ($0.9 billion) in revenue and 410.1 million profit after tax for its 2020 financial year that ended at the end of September. It said Thailand delivered over 70% of its bottom line.

In 2021, the company is pumping more than 240 million ringgit as CAPEX to complete logistics-related projects, including an integrated warehouse equipped with an Automated Storage Retrieval System.

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