Kraft Heinz Company has expanded its partnership with Swiss holding company DKSH Business Unit Consumer Goods to Malaysia. The decision comes as Kraft Heinz aims to simplify its operation in the region, by decreasing time spent on distributor management and by moving from a multi-distributor model to one service provider.
DKSH will provide a full-service solution for Kraft Heinz to accelerate growth for household brands, such as Heinz, ABC, HP Sauce, Lea & Perrin’s and Wattie’s in Malaysia. DKSH’s approach to drive growth is fourfold: First, DKSH will be decreasing Kraft Heinz’s operational complexity in Malaysia, including East Malaysia. Second, it will also improve accessibility by closing distribution gaps in modern trade and expanding coverage in general trade and food services. Third, the company will focus on operational excellence and on raising on-shelf availability. Lastly, DKSH will enable effective analysis through data sharing and business intelligence.
Both parties have tied up since 2001 and DKSH has since supported the company in Singapore and Hong Kong, both of which are key markets for Kraft Heinz in the region. Kraft Heinz's MD, SEA, NWA, India and APAC exports, Joao Leitao, said he believes that the partnership will simplify its operation and open new doors for the company.
"Having one partner that provides a full-service solution in multiple markets in the region is a key strategic reason for us the expand our partnership to Malaysia," Leitao added.
Meanwhile, DKSH's global head, business unit consumer goods, Terry Seremetis, said the expansion of the relationship is testament to the strength of DKSH's growth platform and will further strengthen its position in the market. "We are fully committed to driving availability and visibility of globally renowned brands like Heinz and regional hero’s like ABC," he said.
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