SINGAPORE: Fraser & Neave predicts "challenging year" - report
Fraser & Neave and Coca-Cola officially ended their partnership in October last year
Fraser & Neave Holdings (F&N) has said it expects this year to be challenging for the firm following the end of its partnership with The Coca-Cola Co, according to reports.
F&N's CEO for Malaysia, Datuk Ng Jui Sia, is reported as telling Business Week on Monday (16 January), that the company is "feeling the impact of the Coca-Cola absence". However, he added that the strength of the firm's brands and distribution infrastructure should "help the group overcome the drop in its soft drink revenue".
The Singapore-based soft drinks firm and Coca-Cola officially ended their partnership in October last year. The deal had seen F&N bottle and sell Coca-Cola's drinks in Malaysia, while Coca-Cola had done the same for F&N in Singapore.
Despite it being Coca-Cola's decision not to renew the contract, F&N said at the time that ending the partnership was a decision it would have taken anyway. Going forward, the firm said it will look to expand its regional presence and brand portfolio.
Last November, F&N reported an 87.6% increase in full-year profits, bolstered by the divestment of Kingway Brewery. Net sales were up by 15% on the previous year.
F&N could not be reached for comment on the Business Week report.
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