MIDF Research: Nestle’s rights extension enables F&N to increase share in liquid milk segment

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MIDF Research: Nestle’s rights extension enables F&N to increase share in liquid milk segment
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KUALA LUMPUR, March 15 ― An extended rights as the exclusive manufacturer and distributor for Nestle’s Bear brand sterilised milk in Cambodia would allow Fraser & Neave...

KUALA LUMPUR, March 15 ― An extended rights as the exclusive manufacturer and distributor for Nestle’s Bear brand sterilised milk in Cambodia would allow Fraser & Neave Holdings Bhd to increase its market share in the liquid milk segment, said MIDF Research.

The contract expansion is part of licence agreements originally granted by Nestle in 2007 and subsequently renewed in 2015, said MIDF Research in a note. “The Rojana Distribution Centre in Thailand also connects the factory to a vast Southeast Asian supply chain network, reducing transit time and promoting effective manufacturing,” it said.

Overall, F&N’s medium to long-term outlook is likely to remain intact, underpinned by emerging out-of-home beverage consumption, fuelled by tourists' returns to Malaysia and Thailand after the border reopening.

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