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Jong Brothers, GCB ink distribution deal

Date : 21 June 2008

KUCHING: Melko, a nutritious chocolate malt beverage, has a big market potential in East Malaysia, said Jong Brothers United (M) Sdn Bhd managing director Dr John Jong.

“Melko is a very exciting product with very big potential. We are proud to be associated with GCB Marketing Sdn Bhd, which also has a series of cocoa-based beverages and chocolate products that are being handled by us in the East Malaysian market,” he said at the signing of distribution agreement with GCB Marketing Sdn Bhd to distribute the product in East Malaysia and its launching at the Sarawak Club here yesterday.

Dr Jong signed the agreement on behalf of Jong Brothers while GCB Marketing was represented by its chief operating officer Yeow Ho Hee.

It was witnessed by Jong Brothers United (M) Sdn Bhd senior president Datuk Abang Abdul Karim Tun Abang Openg, general manager Jeffrey Jong and GCB marketing chief innovation officer June Tan.

Karim launched Melko after the signing of the agreement.

Dr Jong said Jong Brothers United had been in the local market since 1975 and was proud to be a pro-active partner for manufacturers and also a proven brand builder in the FMCG trade.

“We have branches in all the main towns and cities in East Malaysia. In addition to our trading activities, we also provide customised warehousing and distribution services that enable us to accommodate the changing needs of our customers as well as enhancing the scope of marketing solutions we provide,” he said.

Meanwhile, Yeow said his company had identified the chocolate malt beverage sector as an opportunity to tap into the downstream industry, where a better return of investment was anticipated besides gaining brand recognition and elevating the company’s portfolio.

“In Malaysia, sales from chocolate malt beverages are estimated at over RM600 million per annum, mainly dominated by a single brand.

“Over the years, prices for consumer products including chocolate malt drink in the country have escalated to record level. Due to this and recent events, consumers may be forced to look for cheaper alternatives of comparative quality,” said Yeow.

“Marketed under the brand name of CacaoRich, Melko comes in four different pack sizes of 200g, 400g, 900g and 2kg and we are introducing our products at between 25 and 30 per cent lower than the prices of the current leading brands,” he added.

GCB Marketing is the marketing arm of GCB Foods Sdn Bhd, the manufacturing unit at Pasir Gudang in Johor.

Both companies are subsidiaries of Guan Chong Bhd, a listed company on the KLSE.