SINGAPORE: Fraser and Neave, Ltd (F&N) is now allowed to continue the bottling of Coca-Cola drinks in Malaysia until September 30, 2011, under a new transition agreement after the expiry of the existing contracts on Jan 26, 2010.

In a joint statement today, F&N and The Coca-Cola Company said they had agreed on the new transition deal that would be in effect from the expiry of their current bottling arrangements in Malaysia, Singapore and Brunei on Jan 26, 2010 until Sept 30, 2011.

"Since last year, Coca-Cola and F&N have been in discussions and exploring mutually beneficial arrangements in the spirit of the long-standing relationship between the two companies. The result is that F&N's Malaysia subsidiary Fraser & Neave Holdings Bhd will continue to bottle, distribute and sell brands from Coca-Cola for the market in Malaysia during the transition period, while Coca-Cola will continue to bottle, distribute and sell brands from F&N for the market in Singapore and Brunei over the same time period," they said.

The companies said the transition agreements, which will run for 20 months, would allow Coca-Cola and F&N to independently pursue opportunities in categories other than sparkling fruit-flavoured drinks and isotonic drinks, and sparkling beverages (cola and lemon), respectively, in Malaysia, Singapore and Brunei.

They do not intend to renew the transition agreements upon their expiry on Sept 30, 2011.

"We have a long business relationship with Fraser & Neave of more than 70 years, and it has been very important for us to find a mutually beneficial and amicable solution to our business challenges as the parties prepare to pursue their separate strategic interests," said Glenn Jordan, Coca-Cola Pacific group president.

F&N's CEO-F&B Koh Poh Tiong said: "It is a win-win situation, as both parties will have more time to plan and execute their respective strategies. For F&N, we look forward to expanding our product range and the footprint of our brands beyond Malaysia, Singapore and Brunei, and to participating in the enormous growth potential that awaits us in the region."