SINGAPORE - Fraser and Neave's Malaysian unit has sealed an extension deal to make and distribute certain Nestle products in Asean.
F&N said in a statement that its subsidiary had signed several agreements with Société des Produits Nestlé and Nestec to manufacture and distribute Carnation, Bear Brand, Bear Brand Gold, Ideal Milk and Milkmaid in Asean, including Singapore, Thailand, Malaysia and Brunei.
The licenses are for a period of 11 years 7 months, with a right to extend for a term of 10 years until 31 January 2037.
These agreements extend the term of the group's existing licenses granted by Nestlé on Feb 1, 2007 when the group acquired Nestlé's canned liquid milk, UHT and chilled dairy and juice business in Thailand, and the Tea Pot brand. The agreements shall take effect from July 1.
They include the right to the manufacture, promote, sell and distribute Carnation in Thailand, Laos and Cambodia; and Carnation evaporated creamer, Ideal evaporated milk, Milkmaid sweetened condensed milk and sweetened beverage creamer for Malaysia, Brunei and Singapore.
The group will continue to manufacture and distribute Bear Brand sterilised milk and Bear Brand Gold for Thailand and Laos.
To cater to the growing market demand, F&N continued to invest in Malaysia and Thailand.
In 2015, it plans to invest 300 million baht (S$12 million) on a new filling and packaging line at our manufacturing plant in Rojana, Thailand, to manufacture Carnation evaporated milk.
This puts total investment, since 2007, in Malaysia and Thailand, at close to RM1 billion (S$372 million).