Fraser and Neave to acquire 70% stake in Yoke Food Industries

Completion eyed by September 2014.

Fraser and Neave, Limited (F&N) today announced that it has signed a non-binding agreement to acquire a 70% stake in Yoke Food Industries Sdn Bhd (YFI), a Malaysia-based company with an annual turnover of more than RM85 million (S$32 million).

YFI manufactures, markets and distributes beverages in Malaysia, as well as exports to Singapore, Indonesia and Indochina, under brands such as Day Day, SoSoy and Juice Secret. The transaction is subject to the execution of definitive agreements and various approvals, and is expected to be completed by September 2014.

F&N said its vision is to be a leading food & beverage (F&B) company in Southeast Asia, and the investment in YFI provides a strategic pillar as it not only expands F&N’s capacities and capabilities, but also increases its presence in Indonesia and Cambodia. The investment also allows the company to optimise its existing direct distribution network to outlets across Malaysia and Singapore.

Dato Ng Jui Sia, Chief Executive Officer, Non-Alcoholic Beverages, says, "YFI has had a contract-packing relationship with F&N for many years. We are extremely pleased to take this relationship to the next level.”

“YFI is a well-managed company with production capabilities and capacities to complement F&N’s own. Its strong product lineup makes them an ideal partner to help us in our next phase of growth. Teaming up with YFI also offers increased opportunities for the distribution and marketing of our brands in Southeast Asia. Together, we will benefit from greater scale and from the broader portfolio of brands, strengthening F&N’s position as a leading F&B player in the region.”

Mr David Cheah, Managing Director of YFI says, “We are delighted to have the support of F&N. Their investment represents a continuing confidence in YFI’s business model, as well as the management team and the quality of our products which YFI has been delivering to the F&N Group in Singapore and Malaysia since 2003. We look forward to working closely with them during this next phase of growth.”