F&N seals licensing agreements with Nestle

FRASER and Neave, Limited (F&N), through its listed subsidiary Fraser & Neave Holdings Bhd in Malaysia, has signed several agreements with Nestle to manufacture and distribute Carnation, Bear Brand, Bear Brand Gold, Ideal Milk and Milkmaid in Asean, including Singapore, Thailand, Malaysia and Brunei.

The licences are for a period of 11 years and seven months, with the right to extend them for a term of 10 years until Jan 31, 2037.

These agreements extend the term of the group's existing licences granted by Nestle on Feb 1, 2007. The agreements will take effect from July 1, 2015.

In 2015, F&N plans to invest 300 million Thai baht (S$12 million) in a new filling and packaging line at its manufacturing plant in Rojana, Thailand, to manufacture Carnation evaporated milk.

"This puts total investment, since 2007, in Malaysia and Thailand, at close to RM1 billion (S$372 million)," the group said.