Hovid, Ace Canning to tap China herbal tea market

 

HOVID Bhd (7213) and Ace Canning Corp Sdn Bhd have spent RM1 million to develop and launch a new range of Drinho Ho Yan Hor herbal tea and plan to sell the product in China by the middle of the year.

The herbal tea, packaged in sachets and cans, is now available in Tetra Pak 250ml cartons.

The new range of drink is targeted at the urban market. This is the first time Ace Canning and Hovid have come together to manufacture, market and distribute a merged brand.

“This new range of ready-to-drink beverage is now available in Malaysia. Soon, we would like to be present in neighbouring countries in view of lower taxation within the Asian Free Trade Area,” said Ace Canning managing director Paul Lim.

“The ‘sour plum’ and ‘luo han guo’ variants carry a premium because they are the traditional brew of Ho Yan Hor. It will be retailed at RM1.50, well above the ordinary category of RM1.10 per unit,” he said.

Hovid managing director David Ho said the new beverage will be introduced in China in May 2010 when Malaysia’s Tourism Ministry leads a trade delegation to exhibit at the World Expo 2010 in Shanghai.

Lim and Ho were speaking to reporters after Tourism Minister Datuk Seri Dr Ng Yen Yen officiated at the launch of Drinho Ho Yan Hor ready-to-drink beverage in Petaling Jaya yesterday.

Also present was Tetra Pak (Malaysia) Sdn Bhd managing director Andres Wester. Malaysia’s consumer spending was resilient as the ready-to-drink market grew 5 per cent to 330 million litres last year from 315 million litres in 2008, Wester said.

This year, he forecast the market to expand further to 345 million litres.

Ipoh-based Hovid is a pharmaceutical company that makes and sells vitamins, supplements, herbs and sports nutrition products.

Ace Canning, on the other hand, is part of the Singapore-based Lam Soon Group and its core businesses include plantations, oil milling, refining, and soap and detergent manufacturing.