F&N extends ASEAN Nestlé canned milk brand licenses
The Singaporean food and beverage firm last week signed several agreements with Switzerland-based Nestle to manufacture and distribute Carnation, Bear Brand, Bear Brand Gold, Ideal and Milkmaid brand products in specific South East Asian markets.
The licenses secured by F&N, which come into force on July 1 2015, are valid for a period of 11 years and seven months.
F&N has the option, however, to extend each by an additional 10 years to January 2037.
The financial terms of the deal were not disclosed.
“We are very pleased to have signed these agreements with Nestlé," said Dato Ng Jui Sia, CEO of F&N's non-alcoholic beverages business.
"Nestlé's Carnation and Bear brands already enjoy a strong consumer following in ASEAN. Coupled with our unrivalled on- and off-trade distribution network, we are able to realise their massive potential in the region," he added.
The agreements extend licenses secured by F&N in February 2007.
Under the agreements, F&N holds the right to manufacture, promote, sell and distribute Carnation brand products in Thailand, Laos and Cambodia.
It is also permitted to manufacture and distribute Carnation evaporated creamer, Ideal evaporated milk, Milkmaid sweetened condensed milk and Milkmaid sweetened beverage creamer in Malaysia, Brunei and Singapore.
Licenses to manufacture and distribute Bear Brand sterilised milk and Bear Brand Gold beverages in Thailand and Laos were also extended.
To support its continuing association with the Carnation brand, F&N plans to spend 300m Thai Bhat (US$9.2m, €8.2m) on a new filling and packaging line at its Carnation evaporated milk plant in Rojana, Thailand.
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