Singapore

19Jan2001 F&B takings up 3.8% in Jan-Nov.

NOT only were there more visitors to Singapore last year, they also spent more on food and drink, according to a study by Hospitality Asset Advisors (HAA).
In its monthly report on local hotel trends, the hotel consultancy group says guests spent 3.8 per cent more eating and drinking in the year to November. It found F&B revenue per guest rose from $30.93 in the first 11 months of 1999 to $32.10 in the same period last year.
HAA's survey of selected hotels in Singapore also found guests spent more on food than drink. Beverage revenue as a share of total F&B revenue dipped from 19.7 per cent in the first 11 months of 1999 to 19.5 per cent in the same period last year.
The record 7.6 million visitors to Singapore in 2000 helped boost average hotel occupancy to 83.2 per cent in the year to November - a 76.9 per cent jump from the previous year.
Hotels in Chinatown and the business district saw the greatest improvement in occupancy, putting on 12.4 percentage points to 82.8 per cent. Those in the Dhoby Ghaut to Marina Bay stretch chalked up a 9.5 percentage point rise to 84.5 per cent. And Orchard and Tanglin Road hotels saw occupancy climb 4.5 percentage points to 82.4 per cent.
With better occupancy, hotels also commanded better rates. The average room rates rose 10.1 per cent, from $121.39 to $133.70. Hotels in the Orchard and Tanglin area were most expensive, followed by those in Dhoby Ghaut to Marina Bay area and finally, the Chinatown and business district.

19Jan2001 China meat producer gets in-principle nod for S'pore listing.

CHINA-BASED United Food Holdings has received in-principle approval to list on the main board of the Singapore Exchange.
The company, which operates out of Shandong, is involved mainly in the production and sale of meat and meat products, and also makes animal feed. It rears its own pigs and has an ISO 9002 certified abattoir.
"Our integrated business model ensures a reliable supply and tighter quality control of raw materials," said chairman David Yip. "This enables us to better meet market demand for high-quality products."
The group's Jiangquan brand of processed meat products is sold to food processing companies and retailers throughout China.
The focus is clearly on the domestic market, which accounts for more than 90 per cent of revenue. But products are also exported to Russia, Ukraine and Brunei.
Asked why he had chosen to list in Singapore, Mr Yip said: "We are unable to list in China because our firm has been registered in Bermuda, and is considered a foreign firm. (Also), I feel Singaporean investors have a much better understanding of the food industry."
The group plans to launch its IPO within two months. Mr Yip said of the timing: "We are in a strong financial position...we will launch whenever we are ready."
The group has no debt, so proceeds from the IPO will be used to expand the business. Net profit in 1999 came to $33.1 million on turnover of $211.4 million.
Compound annual net profit growth from 1997-99 was 44.8 per cent.

16Jan2001 Bernas takes 30% slice of Gardenia from Singapore's QAF.

Hot on the heels of its tie-up with food-based Dewina Bhd group last week, Padiberas Nasional Bhd (Bernas) has formed yet another strategic alliance with Singapore's leading food manufacturer and distributor QAF Ltd.
Bernas yesterday signed an agreement to acquire a 30% stake comprising 5.14 million shares in Gardenia Bakeries (KL) Sdn Bhd for RM54.81 million.
The shares are being bought from Ben Foods (Malaysia) Sdn Bhd, a 100% owned unit of QAF, a leading food manufacturer and distributor in Singapore, which will hold the remaining 70% stake in Gardenia.
Bernas has also signed a memorandum of understanding with QAF to explore further joint venture opportunities relating to the food industry in Malaysia as well as overseas.
Bernas group chairman Datuk Seri Mohamad Noor Abdul Rahim told reporters that potential investments may involve flour milling and the manufacture of biscuits and related confectionery.
"We are looking at developing further downstream and upstream activities in the food sector," he said after the signing of the sales and purchase agreement for the Gardenia stake yesterday.
"Such projects would capitalise on the know-how, expertise and operational structure of the two parties which would benefit the new products."
The investments and partnership with QAF are in line with the group's long-term strategy to strengthen its distribution network, Mohamad Noor added.
"Gardenia has a strong brand play and distribution network," he said.
"The alliance would enable us to move forward and be more competitive in the globalised world when the market opens up."
Bernas, which has ventured into other activities including packaging, transportation and engineering, intends to be an integrated food distributor.
Gardenia (KL), with a paid-up capital of RM17.14 million, operates four plants in Malaysia - two in Shah Alam and one each in Puchong and Johor Baru.
Its products are marketed through 12,500 distribution points and will complement Bernas' network of over 17,000 retail outlets.
QAF group managing director Tan Kong King said the existing plants are already running at full capacity and the company is in the process of constructing its fifth factory costing RM47 million at Bukit Kemuning in Shah Alam.
The new plant is expected to be operational by the third quarter.
According to Tan, Gardenia sells more than 200 million loaves of bread, cream rolls and snacks per year and commands 55% share of the bread and bakery market.
It chalked up a turnover of RM200 million in 1999.
Tan pointed out that QAF group can also tap on the expertise of its parent, Indonesia's Salim Group which is one of the largest manufacturers of flour and instant noodle in the world. Salim owns 47% of QAF.

13Jan2001 Safe to consume beef in S'pore, says minister.

IT IS safe to eat beef and beef products in Singapore. National Development Min ister Mah Bow Tan said this yesterday, in reply to a question on the danger of the mad-cow disease entering the food chain here. The Agri-food and Veterinary Authority (AVA) and the Environment Ministry's (ENV) Food Control Department ha ve taken steps to ensure that the food supply here is free of the disease known
officially as Bovine Spongiform Encephalopathy (BSE), he told NMP Goh Chong Ch ia. Only countries certified to be BSE-free for at least six years can export b eef and food containing this meat directly to Singapore or through third countr ies. The items allowed include beef sausages, instant noodles, gelatin, canned beef and beef soup stocks. The six-year ruling is based on BSE's incubation per iod of up to five years in cattle. AVA checks incoming consignments of beef and
beef products, and works closely with the Customs and Excise Department to pre vent smuggling, Mr Mah said. Regular checks on retailers by ENV ensure that pro cessed food containing beef or its ingredients are imported only from BSE-free countries, he noted. AVA and ENV will continue to monitor the situation around the world to prevent the disease from entering Singapore's food supply, he added.

12Jan2001 QAF in China joint venture.

QAF Ltd said its wholly-owned subsidiary, Singfood Investment Pte Ltd, has entered into a joint-venture agreement with East Rise Holdings Ltd to set up Fujian Dongjia Feeds Co in China. The incorporation of Fujian Dongjia was recently approved by China's Ministry of Foreign Trade & Economic Cooperation. The new company, which has a registered capital of US$2.1 million (S$3.6 million), processes and deals in various types of animal feeds (including soya-based feeds). Singfood will own 50.1 per cent of Fujian Dongjia with East Rise holding the rest. The investment in Fujian Dongjia by Singfood Investment is not expected to affect the group's earnings per share for the current financial year.

(c) 2001 ResearchBox.com Pte Ltd. All Rights Reserved.

Malaysia

12Jan2001 Guinness Anchor invests RM50m on new line.

The recent increase in taxes on beer may be affecting Guinness Anchor Bhd.
Even so, the brewery is going ahead with a multi-million ringgit plan to boost production capacity.
Its managing director Terry Challenor said that following the higher sales tax on beer imposed by last year's Budget, the market is "expected to be soft".
"We will have to wait until after the Chinese New Year and the end of our financial year in June 30, 2001 to measure the impact of the tax on us," he added.
"At present, Guinness Anchor commands a 54% share of the beer and stout market in Malaysia," Challenor said after the launch of its new bottling line yesterday.
Guinness Anchor is putting up a new RM50 million bottling line to boost production. This is part of the company's five-year RM100 million capital expenditure investment programme.
Challenor said the expansion would be internally funded.
The new bottling line, which was launched yesterday by the Minister of Human Resources, Datuk Fong Chan Onn, is expected to raise productivity from 3,057 hectolitres to 4,080 hectolitres per employee.
The new line has a production capacity of 50,000 pints or small bottles per hour.
Challenor said, "with the new line, we could produce a total capacity of 1.3 million hectolitres a year".
He said Guinness Anchor's total production per year, based on consumer demand, is 500,000 to 550,000 hectolitres of lager beer and 400,000 hectolitres of stout.
Guinness recorded a net profit of RM21.9 million for the first quarter ended Sept 30, 2000 compared to RM8.7 million for the corresponding first quarter in 1999.

11Jan2001 BERNAS SUBSIDIARY BUYS STAKE IN RICE-NOODLE MAKER.

Bernas Dominals Sdn Bhd, a wholly-owned subsidiary of Padiber as Nasional Bhd (Bernas) today signed an agreement to buy a major stake in a noodles manufacturing company, Rasayang Food Industries Sdn Bhd.
Bernas chairman Datuk Seri Mohamad Noor Abdul Rahim said Bernas Dominals will buy a 50 percent equity stake in Rasayang for nearly RM3.5 million.
In the first place, Bernas Dominals will buy a 43.45 percent equity stake in Rasayang for RM2.658 million, he said. At the same time, Bernas will pay RM800,000 to subscribe for the entire issue of 800,000 new shares in Rasayang at the nominal value of RM1.00 per share.
"In three years' time, Bernas Dominals will obtain the opportunity to buy another one percent of Rasayang shares to raise its shareholding to 51 percent," Mohamad Noor said at the agreement signing ceremony here.
He added that, under the agreement, Bernas Dominals will also supply crushed rice (beras hancur) to serve as the basic raw material for bihun (rice-noodle) production.
At the same ceremony, Bernas also signed a three-way memorandum of understanding (MOU) with Rasayang and Dewina Trading Sdn Bhd, the maker of the Brahim brand of pre-cooked food.
"This MOU is aimed at establishing a network of distribution outlets for the are more efficient and effective marketing of food-based products under the Bernas trading network," he said.
At present, the distribution network of the Bernas group consists of some 17,000 out of 37,000 retail shops, supermarkets and hypermarkets in the country.
Ahmad Fuad Abdul Wa hab, Bernas's deputy group managing director for corporate services and other business, said that Rasayang had gained a 12 percent share of domestic market for rice-noodles.
The company was expected to raise the level of its market share to 30 percent within the next one to three years through its operation under the Bernas marketing network.
He added that Rasayang was currently in the process of raising its daily production capacity from 23 tonnes to between 25 and 40 tonnes.
Rasayang w as also in the process of producing instant rice-noodles and instant wheat-noodles (mee segera dan bihun segera) in the near future for marketing and distribution in the local region. This objective was expected to be achieved by early next year.
Meanwhile, Dewina Trading's general manager, Dr Baharudin Kadir, said the company also hoped to raise its market share through its participation in the Bernas network under the newly-signed MOU.
At present, through its network of 6,000-7,000 outlets, Dewina held a 30 to 40 percent share of the domestic market for pre-cooked food.
The deputy managing director (rice trading) of Bernas, Yahya Abu Bakar, said that Bernas planned to raise its distribution network from 17,000 outlets to 20,000 outlets within the next one to two years.
Asked about the possibility of Bernas's management structure being revamped, Mohamad Noor said it was only a matter of time before changes were made "to strengthen Kumpulan Bernas".
The revamp would only inv olve a few personnel at the top management level and was expected to be implemented early next month, he added.
On Bernas's investment strategy, Ahmad Fuad said the company's investments in the past three years has been minimal compared to those of other companies.
However, he added: "What we are actually doing is that, while everyone is slowing down, we invest because we have the capabilities. We are not (investing) beyond our capabilities: it is very much within our capabilities."
Ahm ad Fuad explained that Bernas's investments in the past three years had been in its subsidiary companies and the total for the period had not exceeded RM100 million.
Asked about the corporate performance of Bernas for the financial year which ended on 31 December 2000, Ahmad Fuad said: "The profits should be normal if one looks at the post-1995 trend as a whole, taking into account that the last year (1999) produced an unusual pre-tax profit due to the tax-holiday enjoyed by all taxpayers."

11Jan2001 Bernas to partner RSY, Dewina in food ventures regulations.

Padiberas Nasional Bhd (Bernas) has entered into a joint venture with R.S.Y. Sdn Bhd to manufacture beehoon and beehoon laksa products.
Announcing the deal this evening, Bernas said its unit Bernas Dominals Sdn Bhd (Dominals) would acquire 50 per cent, comprising 3.45 million shares, of RSY's wholly owned subsidiary, Rasayang Food Industries Sdn Bhd.
Dominals would initially purchase 2.65 million shares in Rasayang from RSY for RM2.65 million, and subscribe for another 800,000 shares in a capital expansion plan that would increase Rasayang paid-up capital to 6.91 million shares.
Bernas said the joint venture would allow Dominals to have access to Rasayang's product knowledge while benefiting from Bernas' distribution network.
Meanwhile, in separate announcements to the KLSE today, Bernas has agreed to distribute and market Rasayang and Dewina Trading Sdn Bhd's products locally and internationally.
The strategic alliance would allow Bernas to leverage its network of 17,000 retail outlets and become a fully integrated food distributor on top of being the major player in the rice supply chain.
Rasayang manufactures food products, while Dewina Trading is the sales and marketing arm of convenience food manufacturer Dewina Bhd.

(c) 2001 ResearchBox.com Pte Ltd. All Rights Reserved.

Thailand

22Jan2001 Chang's rival fizzes at soda sales tactics...

Chang's rival fizzes at soda sales tacticsBoon Rawd claims liquor link is unfairNondhanada IntarakomalyasutAfter trouncing Boon Rawd Brewery in beer sales, Beer Thai (1991), the maker of Chang beer, is attacking its arch-rival on a new front - soda water.
Beer Thai wants 20% of the soda water market this year, breaking Boon Rawd's 97% hold. The market is worth about 3.6 billion baht a year, with Chang now having only 1.3%.
Beer Thai's strategy, as confirmed by its distributors, will be to "package" sales of Chang (elephant) soda water with Chang beer and other alcoholic drinks produced by the group - a move that has angered Boon Rawd.
The rival company claims that Beer Thai's marketing strategy is another blatant example of unfair trade, as Chang beer and liquor sales agents are allegedly forced to buy Chang soda water.
Boon Rawd, the brewer of Singha beer which once had a 90% share of the domestic beer market, has repeatedly accused Beer Thai of unfair trading. It says its rivals' agents are forced to buy Chang beer if they want popular white spirits and Mekhong whisky from the company.
The strategy has been so successful that Chang now claims 60% of the local beer market, while Singha beer's share has fallen to about 30% from 90%.
Boon Rawd complained to the Trade Competition Committee, which ruled in favour of Beer Thai, as there was no clear evidence that the company had forced others to take its products. Beer Thai adviser Thanit Thammasukati said the firm would start increasing sales of Chang soda water by doubling the number of agents in Bangkok.
Chatchai Wiratyosin, deputy managing director of Boon Rawd, complained that agents for rival Chang beer had to buy eight cases, up from five, of beer for every 32 bottles of white liquor they purchased. Some 10% of the total purchase had to be of Chang bottled water and 5% of soda water. But most agents threw away the water and soda water as there was no room to carry the products, he said. Some resold it to restaurants at one baht per bottle, damaging the businesses of other water producers, he said.
An agent for Chang beer in Bang Yai confirmed the percentage figures for water and soda water purchases, but added: "The company doesn't really force us [to buy them] but the products come with the beer and liquor, so it could be called forced, couldn't it?" Most Chang water and soda water could not be sold because there was an oversupply and the brand was not as popular as Singha. However, revenue from sales of Chang beer and spirits more than covered any losses.

16Jan2001 Thailand's Minor Food bullish on 2001 growth.

Thai fast food operator Minor Food Group said on Tuesday it expected revenue growth of 10 percent in 2001 versus about three percent in 2000 despite having to shut down all of its pizza outlets for a 45-day rebranding.
Minor Food will discontinue operating the Pizza Hut franchise and in place would launch its own brand, "The Pizza Company", Group Chief Executive Bill Heinecke told Reuters in an interview.
"All the 116 pizza outlets are going to be closed down from February 1 to March 17. Pizza sales, except for the 45-day period, are expected to be the same or marginally less for the year," he said.
Minor Food recently changed its name from The Pizza Company Plc. It has a slice of about 90 percent of the Thai pizza market and revenues from pizza account for a third of the group's earnings.
Minor Food settled a dispute over Pizza Hut franchise rights in Thailand with U.S. chain Tricon Global Restaurants last year.
"The new brand would be more up-market and less like a quick-serve restaurant," Heinecke said.
Minor Foods acquired two new franchises in 2000 - Burger King and Australian chain Chicken Treat, Heinecke said.
"Thailand's quick-serve restaurant market usually grows about twice the economic growth (rate). We expect the market to grow by about 10 percent," he said.
Minor Food is in the process of issuing two billion baht of bonds with a maturity of up to six years.
The company's shares were down one baht at 38.50 at 0500 GMT.

Indonesia

11Jan2001 PRICE OF INDONESIAN TEA EXPECTED TO RISE.

The price of Indonesian tea is likely to increase to US$2 per kg this year from an average of US$1.17 in 2000, according to a new report.
Suwadji Munawar, the president of the state-owned plantation company PTPTN VIII, said demand for Indonesian tea was growing from Europe, Australia, Middle East and Malaysia.
Munawar attributed the increase in demand partly to call from the Food and Agriculture Organization to drink more tea.
In addition, stocks owned by buyers are dwindling as auction had been stopped for the two weeks because of the year end celebrations, he said.
He said the quality of Indonesian tea mainly black tea is good.
In the first auction this year, the tea price averaged 120 cents per kg. The price even reached 190 cents for certain types like BP1 from the Arumsari plantation in West Java.
Munawar said the prices are expected to continue to pick up this year.
Indonesia with production totaling 165,000 tons a year, is the fifth largest tea producer in the world after Kenya, India, China and Srilanka.

Vietnam

16Jan2001 Soc Trang - $163 Mln from Seafood Exports.

The southern Soc Trang province exported 11,700 tons of frozen shrimp last year worth $163.8 million, up 45% from 1999. The province's seafood output was 48,500 tons, a 10% year-on-year increase.

Philippines

12Jan2001 Amatil lifts profit and sale hopes after Philippines improves.

Australasian soft drink bottler, Coca-Cola Amatil, lifted it expectations for 2000-01 net profit on 11 January 2001. This follows a marked improvement in Amatil's Philippines business, which had experienced a severe downturn in earnings since 1997. The Philippines division is currently valued in Amatil's books at $A2.1 billion. However, it is believed that the company's chairman, David Gonski, is pushing to raise this figure higher by several hundred million dollars. Amatil said trading profit in the division will top $A100 million in the current financial year. The improvement in the Philippines bolstered hopes that any sale of the division's assets to Coca-Cola Company of the US and San Miguel of the Philippines would meet, or even exceed, the purchase price being asked for by Amatil.

(c) 2001 ResearchBox.com Pte Ltd. All Rights Reserved.

Brunei

23Jan2001 Brunei - We can, says Sabli Food.

A Brunei company will enter the multi-billion dollar ready-to-eat food market in the very near future when it begins producing canned food products.
According to Awg Hj Sabli bin Hj Arshad, the Managing Director of Sabli Food Industries, his company will initially produce chicken and beef, as well as a local favourite beef rendang, that are processed and canned in this country. Currently, practically all canned food available in Brunei is imported from overseas.
A factory to handle the production process, located in Kg Serambangun in Tutong, is expected to be fully operational in March. According to Hj Sabli, the venture is intended to cater to the need of the large Muslim market that requires "halal" canned food.
Yesterday, members of the Brunei Industrial Development Authority (BINA), led by its director Awg Hj Razali bin Hj Mohd Yusof, conducted a visit to the factory site in Serambangun to check on progress, as well as see the million-dollar processing machinery already in place.
The company, well-known locally for its packed coffee and spices, among its other ventures, also has plans to turn out other types of canned food like sardines, anchovies in "sambal" (chilli), "tahai" flakes, seafood curry and more, should the initial venture with the chicken and beef curry receive a favourable response.