F&N Beverages Marketing, the soft drinks arm of Fraser and Neave Holdings, has sealed an agreement for the sales and distribution of Red Bull energy drink in Malaysia.

The agreement with Allexcel Trading will take effect on 1 April and is expected to contribute some RM120m (US$35m) in revenue in the first full-year or about 10% of F&N Beverages' sales revenue, the firm said yesterday (10 February).

Tan Ang Meng, CEO of Fraser & Neave Holdings said the company is “on the lookout” for opportunities to expand F&N’s network of business alliances with leading beverages companies for “mutual benefits”.

“Red Bull is a world class brand and we are proud to welcome Red Bull to sit side by side with our portfolio of F&N family of brands,” Ang Meng said.

The agreement between F&N Beverages and Allexcel Trading will cover all Red Bull products currently available in Malaysia, which include; Red Bull Less Sugar, Red Bull Gold cans (250ml) and Red Bull bottles (150ml).

Currently, most of Red Bull's products are imported from Thailand and the agreement covers only east and west Malaysia.

Jyn Wee, regional director of Allexcel Trading added: “We are certain that F&N Beverages Marketing will help us further strengthen the Red Bull brand presence within Malaysia. Red Bull is the leading energy drink in Malaysia with a 40% market share for the last decade. We are confident that our new partnership with F&N Beverages Marketing will enable us to make a quantum leap in sales and distribution.”

Fraser & Neave Holdings is a Malaysian company listed on Bursa Malaysia with businesses in soft drinks, dairies and glass packaging. The group employs nearly 5,000 employees in operations across Malaysia, Thailand, China and Vietnam.

Red Bull recently claimed victory in a trademark battle with a Swedish drinks firm SM Group. The energy drink maker took the Swedish firm to court in a bid to stop it selling a product called Red Bat.