YEE LEE GROUP AND TCP GROUP STRATEGIC ALLIANCE TO ENERGISE MALAYSIA BEVERAGE MARKET
Leading industry powerhouses, Yee Lee Group (Yee Lee) and TCP Group today announced that the two companies had formed a strategic alliance that is set to ‘Energising a Better World For All’ Malaysians with innovative and quality energy drinks, Carbonated soft drinks, Asian drinks, coffee and other functional drinks.
Yee Lee is a fully integrated manufacturer and distributor of fast-moving consumer goods (FMCG). While, TCP Group is a multinational company and the co-owner of the world’s most iconic energy drink brand, “Red Bull”, with the Yoovidhya family. Also known as the “House of Great Brands,” the company has a diverse product portfolio and is active in international markets.
The alliance, in which TCP became a 50% shareholder of Yee Lee Marketing, will see both companies leveraging on their combined strength and expertise to enhance the market share of Red Bull products, increase cross-selling opportunities, strengthen efficiencies and service experience for sub-distributors and retailers as well as provide Malaysian consumers with innovative and exciting products.
As a start, Yee Lee and TCP Group will establish a dedicated representative office and in-country team in Malaysia that will play a critical role in solidifying Red Bull’s position as the leading No. 1 energy drink in Malaysia, while supporting the launch of new Red Bull variants in the foreseeable future. Red Bull has a market share of 51.3% Moving Annual Target (MAT) within the Energy Drinks category in Malaysia as of the period ending March 2023, based on NielsenIQ (NIQ) Retail Index report.
The strategic alliance aims to capture approximately 60% of Malaysia’s energy drink industry within the next five years. According to current market data and category forecast, the revenue in energy drinks segment in Malaysia is expected to reach RM 500 million by 2027. The market is expected to grow annually by approximately 7% (CAGR 2023-2027).
Lim Ee Young, Group Managing Director of Yee Lee, said, “Yee Lee has been distributing Red Bull products in Malaysia since 2015.”
“This strategic alliance is a natural evolution of our relationship, where we now come together as one team to drive the growth of the Red Bull brand further in Malaysia and set new benchmarks for the FMCG industry locally as well as across the region,” Lim said.
According to Lim, opening a Red Bull office in Malaysia will strengthen our rapport and engagement with our business partners, sub-distributors and retailers. “We want our market to understand that Red Bull is here to stay and grow in tandem with the positive outlook of the energy-drink space,” he added.
Saravoot Yoovidhya, Chief Executive Officer of TCP Group, said, “TCP Group’s strategic alliance with Yee Lee brings to the table a new level of operational and management best practices, world-class marketing and distribution capabilities as well as an unparalleled customer relations management model to our business partners. In addition, it allows us to understand the needs, habits and preferences of local consumers, bringing the very best of Red Bull to Malaysians.”
“Brought together by a genuine passion and respect for the Red Bull brand, both TCP Group and Yee Lee are now poised to revolutionise the beverage industry with new products and new approaches while playing a role to further strengthen bilateral ties between Malaysia and Thailand,” he added.
Red Bull products obtained the ‘Halal’ certificate and entered the Malaysian market in 1993 with Red Bull Gold and Red Bull Bottle. This was followed by Red Bull Less Sugar and the recent Red Bull Plus. Red Bull Plus is an energy drink for those constantly on the go for work and school, fitness and sports enthusiasts, and those who Work from Home.
In 2023, Red Bull will also charge ahead with its ‘Trust Your Energy’ 2023 global campaign. The campaign seeks to empower people to power through life with the energy they need in an uncertain world while coping with rising inflation. In addition, the campaign aims to energise and inspire everyone to be and do what they want.