BMI Sees Growing Uncertainties In F&N's Near-Term Prospects

2012 is likely to prove a challenging year for trans-Asian soft drinks producer Fraser and Neave (F&N). Softening demand conditions across its Asian markets such as Thailand are expected to dampen its near-term sales prospects. The loss of bottling and distribution rights of The Coca-Cola Company's beverage products in Malaysia and Singapore is expected to place another dampener on F&N's sales opportunities. While these pressures are quickly clouding the near-term outlook of F&N, the company's medium-term future looks far more certain. The company's focus on product innovation and strengthening distribution capabilities should prove supportive of its future prospects.

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