MSM Malaysia Holdings Berhad which owns sugar refining plant MSM Prai Berhad has secured an estimated value of RM290 million refined sugar supply contract with The Coca-Cola Company for both domestic and international production, solidifying its position as the preferred supplier for the Asia Pacific.
Group Chief Executive Officer, Syed Feizal Syed Mohammad said although MSM has already secured term sales supply contracts with various major local Fast-Moving Consumer Goods industry players locally and in the region, the opportunity to be part of the CocaCola supply chain, the world’s most valuable soft drink brand, is part of MSM’s export blueprint as a top 8 global integrated sugar refiner.\
“This accomplishment is an added boost to MSM Group has achieved a turnaround in 2021 and accelerating MSM’s expansion to wider markets across the region. Foremost, as we have been echoing our step-up commitment towards the Environmental, Social, and Governance (ESG) framework, the group will provide sourced sustainable raw sugar supply for Coca-Cola’s domestic market, to begin with,” Syed Feizal added.
MSM has been serving Coca-Cola domestically for more than 10 years. For this two-year contract with Coca-Cola Bottlers (Malaysia) Sdn Bhd, it will supply refined sugar supply for years 2022 and 2023. The two-year contract also applies for the export that commenced in December 2021, where the refined sugar supply will be shipped to a different international destination where Coca-Cola has a strong presence.
MSM Prai which operates the Prai sugar refinery in Penang is the country’s largest sugar refinery with an annual production capacity of 1.05 million tonnes of refined sugar. While MSM Sugar Refinery (Johor) Sdn Bhd, located at Tanjung Langsat Port, Johor with an annual production capacity of 1 million tonnes of refined sugar and is set to ramp up its production in 2022.
Coca-Cola picked MSM due to its ability to meet capacity and specifications, but also the sugar has JAKIM Halal Certification, MS1500:2009, Food Safety System Certification (FSSC 22000 – Manufacturing), Hazard Analysis and Critical Control Point (HACCP) Certifications and Good Manufacturing Practices, amongst others that are relevant to the industry
The capability of MSM to produce the International Commission for Uniform Methods of Sugar Analysis (ICUMSA) 25 specification of refined sugar of global premium quality has established a strong preference for Gula Prai in the FMCG production industry.
