PETALING JAVA.- In a move to mitigate and minimise the impact of the impending sugar tax. on July 1, Fraser 5. Neaye Holdings Bhd iF&N] will be reformulating T0913 of its products that will be impacted by the excise duty. According to FSN CEO Lim Yew Hoe. almost 90% of the group's products are taxable under the sugar tax. He noted that it is a big challenge for the group, given its extensive portfolio of products. but the postponement of the sugar tax to july 1 has provided the management more time to execute the mitigation plan. \"We have carried out sufficient research to ensure that the reformulated products continue to deliverthe same great taste. \"Despite our effortsI there may be some variants of our products which are challenging to be reformulated. So, some of these products may incur a sugar tax. \"In the reformulation of our products. there are some production costs incurred that may result in a small increase in product prices. but it would not be as much as the sugar tax." Lim explained. adding that it was the group's last resort to increase the prices of its products. The excise duty of 40 sen per litre on sweetened beverages is applicable to beverages containing sugar of more than five grammes per 100mLmiik-based drinks containing more than Tgm of sugar per 100ml, as well as fruit and vegetable juices containing sugar of more than 12 gm per 100ml. The overall domestic market is expected to remain challenging. given the intensifying competition in the canned milk segmentJts suchI &N will focus its efforts on growing its carbonated soft drink and isotonic drink segment in Malaysia. to be driven by 100FLU5. The group achieved a five-year record high market share spike for iDOPLUS during the recent Chinese New Year. com m anding a 40% market share of carbonated soft drinks. As part of the special promotions and trade activity for the upcoming Ramadan and Hari Raya festivities, FELN has introduced the limited edition FSLN Lychee Pear drink, with an improved recipe certified with the Healthier Choice logo. as well as fruity varianE of 100PLU5 Other recent new products launched in Malaysia include F&N Seasons Apple Pomegranate and Watermelon Lychee, as well as Carnation sweetened and condensed creamer. Prospects in Thailand are expected to be better, following the improvement in the sweetened and unsweetened condensed milk segments. Not only has the new tube packaging ofcondensed milk resulted in a lower costfor the group, but it has also enabled an increase in occasions with condensed milk, given the practicality of the packaging. Over in ThailandI F&N recently launched the FSN Magnolia Plus LactoseFree Pasteurised Milk range and FSrN Teapot Caramel Flavoured Sweetened Condensed Milk Tube. "The lactose-free products are pretty new and would take time to grow its reception among consumers in Thailand. \"We have no near-term plans to bring this lactose-free range of products to Malaysia, as we need to have the right facilities and insource our miik production first," said Lim. Going forward, the group intends to increase its in sourcing capacity to corn rn and greater economies of scale. To date, the first phase of can-making insourcing has been completed ,with the commissioning of the new can -making line at the Pulau lndah plant that will increase F&N's capacity and operational cost savings. Part of the RM 30mil capitai expenditure aliocated for the financial year ending Sept 30, 2019 is for the expansion of the group's multi-storey automated storage and retrieval system {ASRSJ warehouse in Shah Alam