PETALING JAYA: Consumer packaged goods distributor Kim Teck Cheong Consolidated Bhd (KTC) has inked a licensing agreement to manage bakery brand Gardenia in Sabah, Sarawak and Indonesia.
According to a Bursa Malaysia filing yesterday, KTC will be the sole operator of Gardenia Bakeries (East Malaysia) Sdn Bhd effective yesterday, which in turn becomes a 100%-owned subsidiary of KTC.
Under the agreement, KTC will gain access to all Gardenia recipes and be responsible for the manufacturing, marketing, distributions, sales and further development of the brand in East Malaysia and Indonesia.
Gardenia is a household brand which has been a market leader in the production and wholesale of bread for at least 50 years.
In a press release, KTC executive director Dexter Lau said: “Taking over Gardenia will strengthen KTC’s bakery presence in Sabah and Sarawak as well as pave the brand’s entry into the Indonesian market.”
“KTC has indeed achieved a significant milestone as this would further strengthen and boost the group’s business portfolio tremendously.
“The company’s board of directors, colleagues, partners and shareholders are extremely excited with the expansion into Indonesia.”
KTC has set its sights on penetrating the vast Indonesian market with the Gardenia brand, in line with the state government’s call to leverage on the relocation of Indonesia’s capital to Kalimantan.
In East Malaysia, Gardenia, coupled with KTC’s existing leading bakery brand in Sabah, Creamos, will strengthen the group’s bakery presence in the state.
According to Lau, Creamos has won the confidence of Sabahan and Sarawakian consumers with its superior products, as evident in the steady growth of sales and distribution of the brand in previous years.
Source : The Star Online