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Sugar price up, sugar content down
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Hazlinda Hamzah
Monday, 08 February 2010 16:36
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PETALING JAYA - The carbonated beverages, also known as fizzy or soft drinks, are synonymous with their high sugar content. Whatever the flavour is, the soft drink is known to be a thirst quencher.
In the Malaysian carbonated drinks industry, Fraser & Neave Holdings Berhad or F&N has a reputation of its own. In its 13 decades of operations, F&N has produced an array of fizzy drinks that include the isotonic right up to the fruity flavours.
However, it is ra ther ironic as when the price of sugar went up, the firm did not follow suit by hiking the price of its drinks. Instead F&N reduces the drinks' sugar content.
Fraser & Neave Holdings Berhad CEO Tan Ang Meng (pic) has this to say:
"The move is in tandem with what the consumers want. They are now more concerned with health.
"So far there is lower sugar content in our drinks. We have reduced the sugar content by a rather significant figure, that is 7.5 per cent since the last five years.
"The 100Plus drink is among our 'less sweet' variations. This is something that the consumers welcomed," said Tan.
No price increase
Meanwhile, Minister for Domestic Trade, Cooperatives and Consumerism Ismail Sabri broke into a smile when told of the initiative by the soft drinks maker to reduce the sugar content.
"This is good news. Despite the recent price of sugar going up by 20 sen, F&N did not increase the price of its soft drinks accordingly, and instead regulate the sugar content," Ismail told reporters at the function to officiate the launch of F&N's new image here recently.
 (Effective Jan 1 this year, the price of sugar in the country went up from RM1.45 to RM1.65 a kg).
F&N decided to rebrand its corporate image so that when the firm's contract with The Coca Cola Company ended in September 2011, the Malaysian soft drinks company will be known as F&N Beverages Marketing Sdn Bhd and F&N Beverages Manufacturing Sdn Bhd.
Tan said F&N's new image would be divided into two, in line with their respective functions.
"The rebranding move provides new impetus and determination for F&N to be the supplier of various products, that are trusted by each generation of the consumers.
"It is also a 'homecoming' as the new identity provides F&N an exclusivity in the soft drinks industry. Apart from producing the soft drinks, F&N also simultaneously market them," he said.
Tan said F&N does not slacken even though the firm's carbonated drinks are the choice of consumers but continue to conduct research and development for more innovations and variations for the company's line of products.
The new image is geared to offer the consumers what they want apart from expanding the halal products portfolio worldwide.
New flavours
From early this year, the flavours to be offered by the company would suit the taste of Malaysians and this is also expected to boost the export. The 'fresh variations' of soft drink flavours are expected to bring out the authentic 'fun and enjoyment' from among the consumers.
According to F&N's plans, the firm would have 50 new products within 24 months under its line of soft drinks labels such as F&N itself, 100Plus, Seasons and Fruit Tree.
The carbonated drink 'Ice Cream Soda', which is popular for so long in Malaysia, is now used as the 'cocktail base' with other drinks to become the 'sirap bandung' soda drink which is actually a cocktail of syrup, milk and ice cream soda.
At the same function, F&N also introduced a new concoction made up of pineapple juice and ice cream soda to the guests.
The rose-flavoured soya-based drink under the brand Seasons is a favourite with the locals. Now the drink has been added with red beans and basil seeds.
"I have never tasted a canned drink with basil seeds and I like the taste. Furthermore, the basil seeds are believed to have a cooling effect on the body, apart from the taste it is not glutting and too sweet while its soya base is not too fatty," said a guest who had the opportunity to sample the drink.
When poured into a glass, the rich creamy 'bandung' (a mix of pink and white) appears very inviting.
The soft drinks maker is confident that this new flavour, that went into production last Jan 27, would boost F&N's turnover particularly for the younger generation.
As of end of 2009, F&N's soft drinks division has contributed 35 per cent or RM1.3 billion to the group's earnings. F&N operates four production plants natiowide with the head office located in Shah Alam. - Bernama
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