F&N Malaysia loses distributorship rights on Red Bull

Beverage brand Fraser & Neave Holdings (F&N) has lost its rights to sell or distribute Red Bull energy drinks in Malaysia.

Reported on The Malaysian Insider, late last month F&N filled a report on Bursa Malaysia saying that F&N Beverages Marketing signed a transition agreement with Allexcel Trading where the duo had mutually decided to not pursue a new agreement as both could not reach an understanding on the changes in commercial terms. The article also quotes F&N saying that the non renewal will not have a massive negative impact on its operating or financial performance.

However, there will be a transition period of six months until September this year where F&N Beverages will hand over the exclusive dealership to Allexcel Trading in phases.

The agreement was first signed in 2010 between Allexcel Trading and F&N Beverages for the latter to have exclusive distributorship rights of Red Bull energy drinks for a period of five years dating up to 31 March 2015.The partnership was then expected to contribute approximately RM120 million in revenue in the first full year or about 10% of F&N Beverages sales revenue.

The partnership was aimed at strengthening the Red Bull presence within Malaysia.