Bangkok--4 Jun--Aziam Burson-Marsteller
Oishi Group, taking the lead in expanding its business in the region to capture AEC opportunities, announced a major partnership with the signing of a distribution agreement with Malaysia’s F&N Beverages Marketing Sdn Bhd (F&N Beverages), a wholly-owned subsidiary of Fraser & Neave Holdings Bhd (F&N). Starting on the 3rd of June, F&N Beverages has distributed Oishi Green Tea to 1,460 7-Eleven convenience stores in Malaysia. The company aims to be among top players in the Malaysian ready-to-drink (RTD) green tea market within three years by establishing a solid network of outlets including retail stores and eateries.
Mr. Matthew Kichodhan, President of Oishi Group PCL, said, “Oishi Group welcomes the opportunity to move ahead in Malaysia, a potential market with a total population of 29 million people, in co-operation with F&N. The synergistic advantages of leveraging F&N’s existing distribution network with Oishi’s products under the most well-known RTD green tea brand among Thai consumers results in a new, multi-faceted capability that will benefit both companies and particularly the market at large. Malaysia is a major step for Oishi to enter the international market and we are excited to join forces with F&N Beverages, the top player in Malaysia’s soft drinks sector.”
F&N is Malaysia’s largest soft drink distributor and manufacturer accounting for a 27% market share with a rich history spanning 130 years. It has the largest distribution network with 72,000 outlets, 411 van routes, 60,000 coolers and 5,100 vending machines. The soft drinks division operates five manufacturing plants nationwide and distributes F&N products including 100PLUS, F&N Fun Flavours, SEASONS, myCola, Fruit Tree, Ice Mountain Mineral Water and F&N Cordials.
Malaysia and the AEC present tremendous potential for opening new markets for RTD green tea. Oishi is the first company to make a strategic move to address this market segment regionally. Tapping into the AEC markets is one of Oishi’s strategies to drive its brand and grow an international market portfolio to achieve its goal as the key player in the region.
At present, the RTD tea market in Malaysia is valued at two billion Baht, with the black tea segment accounting for 56% of the market and the green tea segment 40%. The RTD tea market segment is the fastest-growing, with SEASONS, an F&N brand, dominating the market with a 32% share. While average RTD green tea consumption per capita for Malaysians is 0.94 liters per person per year, this amount is relatively low compared to RTD green tea consumption in Thailand, which is about 5.8 liters per person, or six times higher, per year. Oishi sees this opportunity as a major tangible step to establish itself in Malaysia as it moves towards becoming a global brand. The Oishi Group decided to expand its presence in international markets aggressively after enjoying overwhelming success in Laos and Cambodia over the past decade. The company is also off to a good start in EU markets.
In Malaysia, consumer demand continues to boost the growth of RTD green tea, which is regarded as a refreshing beverage. Oishi will initially offer Malaysians a choice of four Halal refreshment experiences including Oishi Green Tea Original flavour; Oishi Green Tea Honey and Lemon flavour; Oishi Green Tea Genmai (Japanese rice) flavour; and Oishi Black Tea Lemon flavour, all in a 380ml PET bottle size, which are the ideal choice for the target market.
Dato’ Ng Jui Sia, Chief Executive Officer, Fraser & Neave Holdings Bhd, said, “This wonderful partnership has come together quickly, and I would like to take this opportunity to thank those in both companies in bringing this deal to fruition so we can take advantage of the market potential out there. This synergistic opportunity signifies an important step for both companies, as it marks a unique partnership between F&N, the No.1 player in Malaysia’s beverage market for decades, and Oishi, Thailand’s most favorite green tea brand.
“RTD Green tea is increasingly becoming a very popular drink for Malaysian people, thanks to the global trend towards healthier consumer products. This presents a promising opportunity for Oishi Green Tea as every bottle is brewed from young organic green tea leaves and made from all-natural ingredients to ensure the unique and delicate flavor of authentic, natural Japanese green tea. The response from consumers towards Oishi’s products is fantastic and we believe that Oishi will repeat the success in Malaysia that it has enjoyed elsewhere.”
F&N Beverages started distributing Oishi Green Tea and Oishi Black Tea in 380ml PET bottles on the 3rd of June to 1,460 locations of 7-Eleven convenience stores. By the end of 2013, Oishi Green Tea will be available in 3,800 convenience stores and petrol stations throughout Malaysia. In the near future, Oishi aims towards localized production in Malaysia for further expansion to Brunei and Singapore.
In addition to 380ml Oishi Green Tea in PET bottles, the company will also distribute Oishi Green Tea in cans. In Malaysia, beverages packaged in RTD Cans are the most popular with a 35% market share as Malaysian people normally prefer to drink canned RTD beverages with meals. This is a huge opportunity for Oishi to increase market penetration and expand the areas where Oishi Green Tea is available.
Oishi and F&N have allocated an initial 100 million Baht for marketing and promotion; product sampling and in-store media at point of purchase to encourage product trials and build brand awareness.“We see tremendous market potential for Malaysia, as more and more people are becoming aware that green tea offers both amazing health benefits and a wonderful taste sensation. Oishi has had a fantastic response from consumers in other markets in Southeast Asia and we are confident that, with a strong distribution network and the excellent marketing strategy from F&N, Oishi will also receive a great response from consumers in Malaysia. We aspire to be among top players in RTD Green Tea in Malaysia within three years.” concluded Mr. Kichodhan.
Mr.Matthew Kichodhan, President of Oishi Group PCL
Dato’ Ng Jui Sia, Chief Executive Officer, Fraser & Neave Holdings Bhd