Fandbee invests RM100m to expand nationwide

by SHAFIQQUL ALIFF / pic source: Fandbee FB

THIRD-GENERATION food distributor Fandbee is investing RM100 million for its aggressive expansion throughout Malaysia and South-East Asia (SEA) by year end to help local traders and customers cope with the rising food costs.

In a statement, Fandbee MD Gareth Tan said the company’s new mission is to work towards food equity by offering high-quality products at very affordable prices.

“Fandbee is now one of the fastest-growing and most innovative distributors in SEA with our operation centres in Malaysia, Cambodia and Vietnam. We are also considering expanding to two other countries soon.

“To bring about food equality-offering and high-quality products at the most affordable prices, we must first have a better cost advantage. This means that our order quantity will have to be massive enough to be able to negotiate for the most competitive cost price with exporters globally,” Tan said in a statement today.

He added that Fandbee would be able to achieve this by rapidly expanding its operations within Malaysia and across SEA and incorporating advanced technology to grow omnichannel business-to-consumers (B2C), business-to-business (B2B), online and offline-to-online.

Fandbee expanded its operations to 14 locations across the Klang Valley to reach out to its customers during the pandemic’s Movement Control Order and created jobs for 300 people.

Since the commissioning of its growth plan in 2002, the business has now achieved a 5,000% growth in terms of sales and to date, Fandbee has opened 17 branches in the Klang Valley, Penang, Terengganu and Kedah.

“With the escalating cost of groceries due to ongoing supply shortage from extreme weather, export controls and war, what better way to begin our mission if not from home?

“We intend to set up a national distribution centre to establish branches in every state in Malaysia. The same business model will also be used for overseas operations, making Fandbee the first Malaysian-owned retail chain brand outside Malaysia,” Tan said.

He added with the expansion of the network, Malaysians have the option to shop offline or order items online and pick them up directly from the store or at any nearby branch.

“We not only offer competitive prices for frozen meats and seafood but we have now also expanded our network to cover fast-moving groceries,” he said.

Fandbee also foresees a double-digit growth in the B2C segment by 2025 with plans to expand its network of both online and offline stores. However, the B2B model is still a big part of its operations.