FRASER & NEAVE HOLDINGS BHD AND THE COCA-COLA COMPANY AGREE TO NEW 20-MONTH TRANSITION BUSINESS ARRANGEMENTS
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On 18 February 2009, Fraser & Neave Holdings Bhd (“F&NHB”) announced that the Bottler’s/Distributor’s Agreements (jointly, the “Agreements”) between its subsidiaries F&NCC Beverages Sdn Bhd (“F&NCCB”) and F&N Coca-Cola (Malaysia) Sdn Bhd (“F&NCC(M”)), and The Coca-Cola Company (“Coca-Cola”) will expire on 26 January 2010 and that Coca-Cola does not intend to renew the Agreements upon expiry.
Since February 2009, F&NHB and Coca-Cola have been in discussions to explore mutually beneficial transition arrangements in the spirit of the long-standing relationship between the two companies.
The Board is pleased to announce that F&NCCB and F&NCC(M) have entered into a Transition Agreement with Coca-Cola on 30 June 2009, which will take effect from the expiry of the Agreements on 26 January 2010 for another 20 months until 30 September 2011, with some modification of terms.
These 20-month arrangements will give F&NCCB, F&NCC(M) and Coca-Cola time to prepare and gear up their respective organizations for the future. The Transition Agreement provides for a smooth transition of business and seeks to minimize any supply disruption to customers and distributors. There is currently no intention to renew the Transition Agreement when it expires on 30 September 2011.
The Transition Agreement further provides that:
1) F&NCCB and F&NCC(M) will continue to enjoy the existing bottling and distribution exclusivity on “Coca-Cola” and “Sprite” in Malaysia until 30 September 2011.
2) F&NCCB and F&NCC(M) are entitled to launch new brands or categories (except cola and lemon-lime carbonated soft drinks) from 27 January 2010 for both domestic and export markets; and
3) Coca-Cola will be entitled to independently pursue opportunities in categories other than isotonic beverages and fruit flavoured carbonated soft drinks in Malaysia from 27 January 2010.
The existing business contribution from the Coke franchise will remain intact throughout the term of this Transition Agreement and is a positive development.
While bringing closure to a long-standing relationship, the Transition Agreement is also a win-win as both parties now have more time to plan for the eventual separation on 30 September 2011. The freedom to launch new products and undertake exports while at the same time continuing to enjoy exclusive distribution rights for “Coca-Cola” and “Sprite” will provide F&NCCB and F&NCC(M) with a longer runway to build sales volume.
Plans to launch new products are in full swing and the additional 20-month head start will enable F&N to build these volumes and further strengthen F&N brands’ equity to cushion the eventual loss of Coke revenue. The group’s financial position is expected to be even stronger with the additional 20 months’ contribution from the Coke franchise.
The Transition Agreement is a pragmatic and mutually acceptable arrangement to separate.
Proposed acquisition of 10% equity interest in F&NCC Beverages Sdn Bhd and F&N Coca-Cola (Malaysia) Sdn Bhd from The Coca-Cola Company
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Further to the announcement today entitled “F&NHB AND THE COCA-COLA COMPANY AGREE TO NEW 20-MONTH TRANSITION BUSINESS ARRANGEMENTS”, the Board is pleased to announce that Fraser & Neave Holdings Bhd (“F&NHB”) has entered into a Letter of Understanding (“LOU”) with The Coca-Cola Company ("Coca-Cola") to purchase the 10% equity interest in F&NCC Beverages Sdn Bhd ("F&NCCB") and F&N Coca-Cola (Malaysia) Sdn Bhd ("F&NCC(M)")( the “combined entities”) for a total cash consideration of RM78.8 million. The purchase consideration was arrived at on a willing-buyer willing-seller basis after taking into account, inter-alia, the net asset value of the combined entities at the end of the transition period i.e. 30 September 2011, the estimated market value of its landed properties and the earnings potential.
With the acquisition, F&NCCB and F&NCC(M) will become 100% subsidiaries of F&NHB.
On completion of the acquisition, the financial effects will be as follows:
A. there will be no minority interest relating to the combined entities and consequently, 100% of the profit/loss of the combined entities will be retained within the Group.
B. Group’s borrowings will increase correspondingly by the purchase consideration;
C. there will be no material effect on the net asset value per share of the Group; and
D. there will be no effect on the share capital and substantial shareholders’ shareholding of F&NHB
Assuming that the acquisition had taken place on 1 October 2007, the financial effects will be as set out in the table below.
Under the LOU, the Group will finalise the Share Purchase Agreement within 30 days of signing.
The consideration will be satisfied in cash and payment terms will be agreed in due course.
This acquisition will be financed from a combination of internally generated funds and bank borrowings.
None of the directors and/or substantial shareholders of F&NHB and/or persons connected with such directors or substantial shareholders have any interest, direct or indirect in the acquisition. The directors are of the opinion that the terms of the acquisition are fair and reasonable and the acquisition is done in the best interest of the Group as it is earnings accretive.
The acquisition is not subject to the approval of shareholders but is subject to the approval of the regulatory authorities, if necessary.
CASE STUDY IN SINGAPORE
说多无谓，给些证据你们看。不要以为凡事都是十拿九稳的。
新加坡有推出过一个新品牌的汽水来挑战可乐和百事，当时引起一阵轰动，可说是整个小新无人不晓（不是夸大）。
那时广告打得很密，销售网也很阔因为新加坡地方小。
照理来说，广告铺天盖地的和到处可见的产品应该会成功吧。。。
但是品牌不是一朝一夕就能建立的，我当时天天都看到广告（我很少看电视都知道）。
那饮料每天经过都看到，但我就是不买，我的小新朋友也是不买。。
不要以为他的广告很烂，相反是很有趣很令人留下深刻印象的。
结果。。。。。是的。。。。那产品最后-----粉身碎骨了。。 INFO
Anything and Whatever are the names of two soft drinks made and distributed in Singapore, by the company Out Of The Box Pte Ltd..[1] The drinks are no longer available as of Jan 2010.
Anything is carbonated and is made in six flavours: Cola, Cola with Lemon, Apple, Fizz Up, Cloudy Lemon and Root Beer.
Whatever is non-carbonated and is made in six flavours as iced tea: Ice Lemon Tea, Peach Tea, Jasmine Green Tea, White Grape Tea, Apple Tea and Chrysanthemum Tea.
The drinks have a unique packaging concept such that every beverage has a generic design, with no way of telling what flavour is contained in the can. This prevents the consumers from being aware of the flavour of the purchased beverage until they drink it. (An observant drinker can, however, make an educated guess by looking at the ingredients specification on the side of the can.)
怎样？有趣吧，名字很有创意，最好玩是你不知道你买的是什么味道。
看下他们的广告，蛮好笑得。
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