F&N renews Asean licences for Nestle liquid milk brands

Fraser & Neave Holdings Bhd (F&N) and its dairy units have renewed licences for Société des Produits Nestlé S.A. and Nestec S.A. (Nestlé) liquid milk brands granted in 2007.

In a statement here Friday, F&N said consequently, it would continue to manufacture and distribute Carnation, Bear Brand, Bear Brand Gold, Ideal Milk and Milkmaid in Singapore, Thailand, Malaysia, Brunei and Laos, until 2037.

F&N said under the new arrangements, it would continue to manufacture, promote, sell and distribute Carnation in Thailand, Laos and Cambodia.

It would also continue to manufacture and distribute Bear Brand Sterilised Milk and Bear Brand Gold for Thailand and Laos.

F&N said the Milo UHT and Bear Brand UHT for Thailand and the Indochina markets would return to Nestlé in a strategic realignment that would enable the company to strengthen its regional strategy in this category.

CEO Lim Yew Hoe said the new licence agreements and renewal agreements were a tremendous boost to deepening and widening the group's footprint in Asean.

"This extended tenure granted ahead of its expiry in 2017 is testament to Nestlé's confidence in F&N," he said.

Lim said there would be no significant impact on F&N's overall performance for 2014/2015 financial year.

"The long-term arrangements will enable the company to strengthen its focus on core categories. We have the broadest portfolio of canned milk brands in the region and are confident of leveraging our expertise in the marketplace to build momentum through various renovation and innovation initiatives," he said.