Farm Fresh Bhd managing director and group chief executive officer Loi Tuan Ee
KUALA LUMPUR: Farm Fresh Bhd
will continue to focus on its regional expansion and growth strategies amid the challenging macroeconomic environment.
In its annual report, the integrated dairy company said it remains upbeat about potential revenue streams that lie ahead.
“In the Philippines, our factory at San Simon is expected to be completed and commence operations in September 2023.
“This will be an important market for us to develop and grow in the next few years.”
Additionally, Farm Fresh said it has plans to introduce growing-up milk powder and embark on the sales of consumer packaged goods (CPG) ice cream by end-2023, further diversifying its product portfolio and capturing new opportunities for growth.
Farm Fresh acquired a 65% stake in ice cream company, Inside Scoop, earlier this year.
Commenting on this, group managing director and chief executive officer Loi Tuan Ee said the group had long seen great potential within the Malaysian ice cream market.
He pointed out that the segment recorded a substantial market size of over RM1.1bil in 2021.
“Despite being dominated by multinational brands, we believe our position as Malaysia’s leading homegrown dairy brand uniquely positions us to disrupt the market and establish ourselves as the national champion in this category,” he said.
Farm Fresh planned to launch one new Inside Scoop outlet a month, which would result in the ice cream company doubling its outlet count in three years.
“The acquisition places us ideally to achieve this ambition,” he said.
Concurrently, Loi said Farm Fresh has commenced investments in a CPG ice cream line at Inside Scoop’s existing plant in Ara Damansara.
“We aim to leverage its existing resources and infrastructure, combined with the strong reputation of Inside Scoop and the expertise of its founders, to introduce CPG ice cream under the brand by end-2023.”
Additionally, Loi said the group’s acquisition of a 90% stake in Melbourne, Australia-based premium dairy company, St David Dairy, will provide Farm Fresh with access to the brand’s well-established client base.
“This includes Melbourne’s leading cafes, restaurants and retailers, along with their range of award winning fresh milk and cultured butter.
“This will in turn unlock synergies by enabling us to utilise the capacity of our Australia-based processing facilities and expand our product portfolio,” said Loi.
He emphasised that the acquisition has opened up a new avenue for Farm Fresh to begin producing premium cultured butter to be exported to various markets in the Asia-Pacific region.
