Farm Fresh Bhd, a prominent Malaysian company that produces various dairy products and plant-based products is set to revolutionize the ice cream market with the recently completed acquisition of a 70% stake in Sin Wah Ice Cream Sdn Bhd.
Following the acquisition, Farm Fresh will introduce a new range of consumer packaged goods (CPG) ice cream in early 2024. The strategic move is expected to fortify the company’s continuous sales growth.
Farm Fresh to launch budget-friendly ice cream potong
Managing Director and CEO, Loi Tuan Ee, emphasized the acquisition’s value, stating, “Other than acquiring a profitable ice cream business with its own brand of ‘ice cream potong’, importantly, this acquisition gives us immediate access to more than 6,000 distribution drop-points, and logistics capabilities to facilitate the distribution of our ice cream products.”
Farm Fresh is strategically entering the ice cream market with a dual-market approach. In the premium segment, consumers can expect high-quality offerings under the well-known Inside Scoop brand where the group acquires majority control of Inside Scoop for RM83.90 million. Simultaneously, the general market will see the launch of budget-friendly ice creams, priced below RM2, under the Farm Fresh and Sin Wah brands.
The group achieved its highest quarterly revenue of RM198.3 million in 2QFY2024, marking a 22.3% increase from RM162.14 million in 2QFY2023. The growth was propelled by the hotel, restaurant, and cafe (horeca) distribution, increased sales of UHT (ultra-high temperature) milk, new product sales, and contributions from Inside Scoop.
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