LEMBAGA Tabung Haji (TH) will soon be marketing a range
of bakery and confectionery products produced by Silver Bird
Group Bhd under a strategic alliance agreement.
products will be under a new brand, which will be revealed in two
to three months. TH is currently the single largest shareholder
of Silver Bird with some 29% stake.
Besides the bread
maker, the pilgrimage fund also owns 9.9% stake in QSR Brands
TH group managing director and chief executive
officer Datuk Ismee Ismail said there was much potential to be
tapped, given that 70% of Muslims in the country were bread
consumers and Silver Bird had a 30% share of the local bread and
Last year, the market was estimated
at some RM1.2bil and is expected to keep growing.
From left: Datuk Ismee Ismail, Silver Bird independent non-
executive director Datuk Seri Talaat Husain and Datuk Jackson Tan
Han Kook with the new packaging of High 5 bread
assured that the fund was serious in its latest venture.
Once we’re in, we’ll be a big player. We’re looking at the whole
value chain of the food industry, starting with the retail
market,” he said after a signing ceremony yesterday. TH was also
considering buying another food-related company, Ismee
A TH statement released yesterday said it intended
to spend about RM300mil initially over the next five years in the
halal food business.
Meanwhile, Silver Bird will leverage
on TH’s five million account holders as well as the fund’s brand
to expand further its Muslim base.
“We’ve been exporting
to Asean and the Middle East countries. TH will give us combined
strength to export to more Muslim countries,” said group managing
director Datuk Jackson Tan Han Kook.
Silver Bird, like its
peers, is facing fierce pressure from rising costs, especially
flour prices. The company has been incurring losses in the past
two fiscal years but believes it can turn around in the current
Last month, Silver Bird raised the price of its
wholemeal bread under the High 5 brand to RM3 per loaf from
RM2.70 previously. In November last year, the price of the High 5
standard white bread loaf was increased to RM2.10 from
Gardenia Bakeries (KL) Sdn Bhd, the other leading
bread maker, has also increased its prices of bread and
confectionery products. Gardenia is partly owned by national rice
distributor Padiberas Nasional Bhd.
Two other major
shareholders of Silver Bird are Tan Sri Vincent Tan, with over
22%, and Australian venture capital firm CVC Ltd, some
Publication: The Star