AirAsia picks 100PLUS and Coke, drops Pepsi
Published: Jan 26, 2010
AIRASIA F&N SOFT DRINKS MARKETING
- AirAsia and F&N Beverages Marketing tie up
- 100PLUS and Coke will be sold on AirAsia flights departing Malaysia
- Deal is effective from February
Malaysia - AirAsia has inked an agreement with F&N Beverages Marketing which will see the low-cost carrier sell soft drink brands 100PLUS and Coca-Cola on board flights from February.
AirAsia said it will be discontinuing its contract with Pepsi.
The distribution agreement with F&N was signed yesterday and means AirAsia flights departing from Malaysia will carry its two popular soft drink brands.
The deal is for a one-year period with further options.
Although, F&N Beverages Marketing will no longer distribute Coke after its contract with Coca-Cola runs out on 30 September 2011.
Coca-Cola had initially decided not to renew a bottling and distribution agreement with F&N which expired on 26 January 2010 but given the long relationship between the two companies, a separate Transition Agreement was created to prepare both sides for the separation.
This prompted Fraser & Neave Holdings Bhd (F&NHB) to unveil a new corporate identity for its soft drinks division, previously called F&N Coca-Cola and relaunched two weeks ago as F&N Beverages Marketing and F&N Beverages Manufacturing.
"While this signing is just the first step, we look forward to growing and extending our relationship with AirAsia. We hope to generate cross channel marketing activities and promotions that would be mutually beneficial and rewarding to both parties," Tan Ang Meng, CEO for Fraser & Neave Holding, said.
AirAsia has set a monthly sales target of 24,000 cans of 100PLUS and Coca-Cola each which will provide a healthy boost to the airline's ancillary revenue.
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