Malaysia-based Fraser & Neave Holdings Bhd (F&N) has strengthened its foothold in the Indochina market by securing extended rights from Nestle SA and Nestec S.A. (Nestle) as the exclusive manufacturer and distributor for Nestle Bear Brand of sterilised milk in Cambodia.
Under the new arrangements, F&N will now manufacture, distribute and market Bear Brand sterilised milk products directly to end consumers in Cambodia with effect from 1 March 2023 until 2037.
F&N CEO Lim Yew Hoe said that this showed the confidence Nestle had in the company which led to strategic partnership that allowed both companies to generate synergistic values by leveraging each other’s strengths in this region.
Lim added, “Together with our newly completed milk and plant-based beverages factory in Wang Muang, Thailand, F&N intends to play a much bigger role in the liquid milk segment. As a market leader in the canned milk category, we already have an expansive portfolio of canned milk brands in the region.”
F&N currently manufactures and distributes sterilised milk and Bear Brand Gold milk for Thailand and Laos. In addition, the company also manufactures, promotes, and distributes the Carnation brand in Thailand, Laos and Cambodia, and sells the Carnation canned milk, Ideal evaporated milk, and Milkmaid sweetened condensed milk and sweetened beverage creamer in Malaysia, Brunei and Singapore until 2037.
According to Nestle Indochina CEO Victor Seah, the partnership had been fruitful as it benefited both partners as well as consumers in Indochina.
F&N Dairies (Thailand) Ltd Managing Director Suchit Riewcharoon said the sterilised milk will continue to be produced at the company’s Rojana factory, the largest canned liquid milk plant in Thailand and in ASEAN. The plant also has strong supply chain network to serve customers in the Indochina region.