SINGAPORE -- Fraser and Neave (F&N), a Singapore-based food and beverage producer, will acquire a 70% stake in Malaysia's Yoke Food Industries (YFI). The company has not disclosed the acquisition cost and the transaction is expected to be completed in September. F&N aims to expand its business in Indonesia and Cambodia, where YFI has a strong presence.
YFI manufactures and distributes beverages in Malaysia and also exports products to other Southeast Asian countries. The Malaysian company markets its products under brands such as Day Day, So Soy and Juice Secret. Its business yields an annual turnover of more than 85 million ringgit (about $26 million).
Last year, F&N became a subsidiary of Thai Beverage (ThaiBev), Thailand's largest beverage company led by entrepreneur Charoen Sirivadhanabhakdi, after Japan's Kirin Brewery agreed to sell him its 15% stake in F&N. With support from the Thai beverage maker, F&N is now seeking to become the leading food and beverage company in Southeast Asia.
F&N said in a statement that YFI's strong product lineup makes them "an ideal partner to help us in our next phase of growth." The company also said that the investment will allow them to optimize the direct distribution network to outlets across Malaysia and Singapore.
