F&N to maintain prices despite weak sentiment

KUALA LUMPUR: Fraser & Neave Holdings Bhd ( F& N) is maintaining the retail prices of its products despite weak consumer sentiment and an increase in input costs.

Chief executive officer Lim Yew Hoe said this would be done through digesting costs and hedging core commodity requirements for the current financial year, along with the corresponding foreign currency exposure, whenever possible.

“We are aware of consumer needs, which is why we are introducing new reformulated beverages at affordable prices to suit their evolving needs in terms of health, taste, and value.

“However, this will be a short-term strategy, depending on product performance and feedback from customers,” he told a media briefing on the company’s performance in the first half of the financial year ending Sept 30, 2018 yesterday.

Lim said the company would also take a cautious approach when launching new products, as it involved substantial costs, including listing fees for retail stores, product development, promotion and marketing.

He said while the company leveraged on innovations to produce drinks which are lower in sugar content and the right type of packaging and sizes, it would also continue to produce the original product range.

With a market share of between 40 per cent and 45 per cent, Lim said F& N was also expecting its sparkling carbonated drinks to recapture more than half the market share over the medium term.

Meanwhile, he said the company was also looking at expanding its plant in Pulau Indah, which was running at full capacity.

“We still have a big piece of land and think it should be used to double capacity.But, this may be done in phases, rather than opening at a different location,” he added. — Bernama