F&N NOT RISE SOFT DRINKS PRICES BEFORE MARCH
By m_azlanshah • Jan 22nd, 2010• Category: ! Product News
When the sugar price rise the other sugar base products also feel the impact. so F&N had take inisiative to reduce sugar consumpsion on its produts and absorb the cost partly. Remember less sugar in food add more in smile.
F&N NOT RISE SOFT DRINKS PRICES BEFORE MARCH
Soft drinks manufacturer, Fraser & Neave Holdings Bhd, will not raise prices of its products until end of February, its Chief Executive Officer Tan Ang Meng assured consumers on Thursday.
“We will absorb the cost increases at least until the festive month. For sugar alone, it will cost us RM2 million a month,” he told reporters after the company’s annual general meeting.
Tan however said the company would have to review prices should there be a tariff hike or prices of raw materials increased.
“We are mindful that consumers are now experiencing not an easy time. So, we will try our best to hold on to the current prices as long as we can. However, we have to review prices if other cost increases take place,” he said.
Tan said the company was reluctant to raise prices as it could affect consumption.
To cushion the impact of cost increases, Tan said the company would reduce sugar content in its products in the long term, promote less-sweet products and increase the volume of normal products.
Over the past five years, the company had reduced by 7.5 per cent sugar level in its products.
As for less-sweet products, he said they contain 25 per cent less sugar than the normal products.
On soft drinks division, Tan said the company aimed for double-digit growth in the current financial year ending Sept 30, 2010 compared to RM1.31 billion recorded last year.
He said the company was operating full swing to launch new products starting next week and to strengthen distribution network in the division as the management geared up for expiry of the Coca-Cola transition agreement in September 2011.
“We are looking for a partner or a new franchise that wants to leverage on our strong distribution network,” he said, adding that the company would launch 50 new products in the next two years as part of its strategy to strengthen its soft drinks division.
– BERNAMA
