Food and drink giant Yeo Hiap Seng eyes growth

Singapore and Malaysian food and drink manufacturer Yeo Hiap Seng is set to bolster its product and services offering with a foray into industrial packaging in the next few years.

The company also plans to ramp up production operations in Phnom Penh, Cambodia, with a new 40,000sqm factory slated for completion by early 2017.

The push in production velocity follows news Yeo’s exclusive deal with PepsiCo to bottle and distribute brands such as Pepsi, 7-Up and Mountain Dew had ceased – an operation that reaped considerable earnings in the 2016 financial year.

Yeo’s 2017 earnings are expected to take a hit from the deal loss, and chief executive Melvin Teo is determined to offset the defeat by a gamut of new products and services.

Teo joined Yeo Hiap Seng a little over a year ago, coming from an illustrious banking career to take the helm.

The publically listed company’s annual revenue for 2015 was $36.8m, and Teo has set a benchmark of 3-5 years for the packaging manufacturer’s production increases.

Yeo Hiap Seng Limited manufactures, distributes, and exports canned food, sauces, and non-alcoholic beverages. Through its subsidiaries, the company also rents beverage vending machines.

The group was established in 1900, starting as a small shop selling soya sauce in Zhangzhou, China.