KUALA LUMPUR: Fraser & Neave Holdings Bhd is working on a new product to replace its energy drink Red Bull after the exclusive rights to distribute Red Bull expires on Sept 30, 2015.
F&N Chief Executive Officer Lim Yew Hoe said the new product is still under extensive research in Thailand, Singapore and Malaysia and the group will work hard to come up with an energy product with the quality of Red Bull.
“Red Bull is quite an established brand.
“If we cannot have Red Bull, we need to have another energy drink.
“We still have a few more months to go, and there is no need to rush to launch a new energy product.
“We would like to be very careful with what we do in making energy drinks as we want it to stay with us for a long period,” he told reporters after the group’s first half financial results briefing here yesterday.
He said the group had grown the Red Bull business to about 200-400 million cases worth about RM200 million to RM250 million in revenue.
He said the distribution termination will not affect the group’s financial year ending Sept 30, 2015 but might have an impact on the group’s topline in the following financial year.
“We do have a few things in the pipeline to replace the volume lost by the Red Bull termination and we are looking at a few other products,” he added.
Lim said F&N will also be launching a new cola brand from Thailand in a few days.
F&N Beverages Sdn Bhd has entered into a transition agreement with Allexcel Trading Sdn Bhd not to renew its distributorship for Red Bull energy drinks in Malaysia which expired on March 31 this year.
The group is currently reassessing the project timeline of its mixed-integrated development in Section 13, Petaling Jaya named ‘Fraser Square’ to ensure maximum value to shareholders.
“We are in a softening property market, we want to come up with the products (apartments) that give comfort to buyers.
“We are building 900 units of apartments but we need to review our product offering to better meet the consumer demand,” F&N Chief Financial Officer Soon Wing Chong said.
The apartment project, with a RM2 billion gross development value, is expected to be launched in the second quarter of next year, he added. — Bernama