KUALA LUMPUR: Sharing the plans in store for Cocoaland Holdings Bhd, Fraser & Neave Holdings Bhd (F&N) CEO Lim Yew Hoe said the group's long-term goal is to build the 40-year-old candy maker into East Asia's most recognisable gummy manufacturer and a leading producer of chocolate products internationally.
As at Nov 25, Cocoaland has been delisted from the Main Market of Bursa Malaysia following its acquisition and privatisation by F&N.
"With our existing good relationship with Cocoaland’s management and the injection of a fresh team of professional and experienced leaders into the company, we are optimistic about capturing future opportunities that will drive our expansion to other global and domestic markets,” said Lim in a statement.
According to Lim, Cocoaland brings a lot of synergies to the group with its product range having an identical route to market and consumption ocassion as F&N's current beverage and dairy products.
He added that Cocoaland's popular snacks and confectionary also complement F&N and Sri Nona to create a wider portfolio for the group's expansion overseas, especially to halal markets.
On the domestic front, Lim said Cocoaland can leverage F&N's expansive distribution network and procurement synergies.
Concomitantly, Cocoaland offers ample capacity for expansion with four maunfacturing plants in Malaysia to supports F&N's existing business and future growth
"For example, Sri Nona will utilise vacant factory space to increase its much-needed capacity for ketupat, and Cocoaland’s beverage line will produce more F&N products,” Lim added.
Lim noted that being a small player in the total confectionary, sweets, biscuits, and savoury snacks category - currently worth RM4.2bil in Malaysia - Cocoaland has room to grow, especially in the healthy and functional range.
He added that F&N plans to build upon Cocoaland’s strengths and invest in the brands to introduce new portfolios such as plant-based and health & wellness products.
In the third quarter ended Sept 30, 2022, Cocoaland recorded a net profit of RM10.6mil, up from RM4.1mil a year earlier, while revenue jumped 55.8% year-on-year to RM71.7mil.