Fraser & Neave Holdings Bhd (F&N) is planning on expansion in both downstream and upstream businesses for a sustainable future.
For the upstream, its acquisition of Ladang Permai Damai Sdn Bhd will assist F&N in embarking on its plan to expand into fresh milk business, as Permai Damai Estate could lease the land to carry out operations of integrated dairy farm and crop plantation (feed). This ultimately will reduce F&N reliance on imported milk while at the same time promote local agriculture sector. At the site, F&N will own a vertical integration business which will also feature a milk processing facility and will ultimately produce 200 million litres of fresh milk annually with 20,000 milking cows for the local and international markets. F&N is looking to invest over RM800 million (US$188.2 million) on the integrated farm, with Phase 1 to be operational in December 2024.
For the downstream, F&N’s recent acquisition of Cocoaland Holdings Bhd is expected to strengthen its focus into the Halal packaged food category. F&N sees huge potential to grow in this category especially in the healthy and functional range. It plans to invest in the brand to introduce new portfolios such as plant-based and health & wellness products.
Currently, only 60% of F&N’s total portfolio is endorsed with a Healthier Choice Logo, and the Group is targeting to increase this to two-third by 2025.