KLANG: Local confectionery maker Munchy’s has come a long way since starting out in 1991 with one second-hand, Austrian-made, wafer-stick machine costing RM80,000.

To mark its 20th anniversary this year, it is launching a campaign themed “Sharing the Fun” which will depict Munchy’s journey from a humble family business in Batu Pahat, Johor, to a company that exports to 60 countries around the world.

CK Tan, group chief executive officer of Munchy Food Industries Sdn Bhd, said in a recent interview at the company’s corporate headquarters in Klang that 20 years is a milestone for any company’s survival. “It shows our chances of surviving the next 20 years will be better,” he added.

A big part of the campaign will focus on Munchy’s 20 years of heritage, said Tan. A new product, Captain Munch, was added to the brand this month, in conjunction with the launch of the campaign in the next few months.

Tan said Munchy’s would continue to drive innovation through new product development such as the “perfect dip-size” Munchy’s cream cracker, which takes note of the fact that Malaysians have a habit of dipping their crackers into their coffee.

Since its rebranding in 2005, Munchy’s budget for advertising and promotions (A&P) has continued to grow. According to Tan, this year’s A&P budget would be 30% more than last year’s, which was about RM13 million. About 30% of this year’s budget would go into Munchy’s 20th anniversary campaign.

Although it started as a family business, Munchy’s growth made it necessary to bring in professional managers.

“We never believed that we’d need to manage this company forever. We are now able to run with good people who have more skills per se and the progress has been very encouraging,” said Tan, the third of five sons. Three of his brothers sit on the company’s board.

Last year, Munchy’s surpassed RM300 million in revenue. It is aiming to grow about 25% year-on-year for 2011. While still predominantly a local brand, about 20% to 30% of Munchy’s revenue is derived from exports.

Tan expressed high hopes for the company. “(For) the next few years, we will focus mainly on Asia because of the free trade agreements with Southeast Asian countries... now it’s time for us to go deep instead of just being on the surface,” he said. Munchy’s plans to deepen its presence by opening offices in other countries, instead of selling its products through agents or distributors.

“We want to be a Malaysian brand for the world,” he said.

This article appeared on the Media & Advertising page, The Edge Financial Daily, Apr 14, 2011.