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Yeo's to distribute Celsius Holdings' products in Singapore, Malaysia, Indonesia
TWO weeks after Singapore-listed Yeo Hiap Seng (YHS) announced that its exclusive agreement to bottle, sell and distribute Pepsi products here will cease, the drinks manufacturer will now distribute the products of Celsius Holdings Inc in a new partnership.
On Tuesday, Celsius Holdings said in a release that it has expanded its international distribution network through a partnership with YHS Singapore, a public-listed arm of Far East Organization.
The launch will increase product availability for Celsius, the holdings' negative calorie drink, throughout Yeo's distribution network in Singapore from the third quarter, with a planned expansion into Malaysia and Indonesia later this year.
Celsius Holdings said Yeo's is widely recognised as a beverage leader across South-east Asia, with an extensive distribution network supported by sales, marketing, and beverage production expertise.
Besides a strong presence in the region, Yeo's also has extensive distribution around the world including the United States, Europe, Australia, and China, it said.
Gerry David, president and chief executive of Celsius, said: "Through our partnership with Yeo's, Celsius will be positioned in a rapidly growing category as the ideal choice to meet the demands of consumers seeking energy drinks with calorie burning options. With proven success in a variety of countries and channels, we look forward to bringing Celsius to Singapore, while continuing to catapult our growth opportunities around the world."
The energy drink market is expected to grow at 11 per cent compounded annual growth rate (CAGR) between now and 2019, Celsius Holdings said.
It added that Singapore, Malaysia and Indonesia - comprising a population of more than 285 million consumers - represent some of the fast-growing segments of this global opportunity.
Said Melvin Teo, group CEO of Yeo's: "The ready-to-drink energy category has seen significant growth in Singapore and its neighboring countries in recent years."
This development comes after YHS's exclusive deal to distribute Pepsi products ceased on June 30. But the arrangement will be extended for four months from July 1 to end October to enable parties to facilitate a smooth disengagement.