CHAPTER 3 THE COMPANY

CHAPTER 3

THE COMPANY

3.1 Company Overview

The SILVER BIRD Group has over the years, established itself as one of the dominant bakery and confectionery manufacturers in the country. A multi-million ringgit a year industry, SILVER BIRD is principally engaged in the business of bakery manufacturing, sales and distribution of bakery and telecommunication products and wholesale / logistics of bakery ingredients. The group is made up of the following operating subsidiary companies, each specialising in a key bakery-related business yet at the same time contributing synergistically to the growth of the group.

3.2 Business Description

SILVER BIRD Group Berhad is principally engaged in the business of investment holding whilst the principal activities of the subsidiaries are manufacturer of frozen and daily fresh/shelf-stable bakery goods; sales and distribution of bakery goods and telecommunication products; marketing and distribution agent for financial related products. SILVER manufactures a wide range of bakery products, including frozen cakes, fruit cakes, cake mixes, frozen pizzas, daily-fresh products and shelf-stable products.

            One of the companies “STANSON Marketing Sdn. Bhd”m is a High 5 branch at Kuala Terengganu. This company acts as storage of High 5 bread and Mambo snack for Terengganu because High 5 factory supplying bread everyday to keep adequate supplies of bread.

3.3 Company History

Silver Bird was incorporated in Malaysia under the Companies Act, 1965 on 5 October 1993 as a private limited company under the name of Madeleine Bakery Café Sdn. Bhd. (“MBC”). The company changed its name to Silver Bird Group Sdn. Bhd. On 21 August 1998 and subsequently to Silver Bird Group Sdn. Bhd. on 3 March 1999. on August 2000, Silver Bird was converted into a public company and assumed its present name.Silver Bird is an investment holding company, with subsidiaries, which are principally involved in bakery industry.

3.3.1 The Bread History

Silver Bird is not only known in Malaysia for its quality products but for its High5 Bread Town museum, which attracts more than 100,000 visitors annually. The museum, which opened in October 2004, is located in the heart of Shah Alam’s industrial section within the Silver Bird Complex. The museum cost approximately 3 million MYR (US$790,000) to build. The museum was the brain child of Dato Jackson Tan, group director of Silver Bird. It was designed to help educate the public, as well as students, about the art and science of bread making.

Touring Bread Town takes visitors through nearly 5,000 years of history, from early attempts of bread making in Egypt to the fully automated process known around the world today. Tours of the museum begin with an audio-visual program explaining the history of bread making. Other areas of the museum feature exhibits of ancient Egyptian bakers, bakery production in the Iron and Middle Ages and old-fashioned bread shops from the past century.

The museum also allows visitors to take a glimpse into the future through its "time tunnel." During this portion of the tour, visitors walk along an elevated walkway to see how bread is made at the Silver Bird factory.

New additions to the bread museum over the past few years include:

·         The World of Bread Board — this board shows the history of different types of bread available around the world. It is educational and interactive.

·         Flour Gallery — This gallery shows a history of different flour bags available around the world.

·      Bread Town Cafe; — this cafe; was added in 2007 offering visitors a place to sit and enjoy a simple menu during their visit to the facility.

·        Toaster Gallery — this most-recent addition features an array of toasters dating back to the early 1900s.

3.3.2 The Highlights

·         Year 1960 onwards

1960		Mr. Tan Chin Suan started Standard Confectionery in a rented premise in Jalan Tuanku Abdul Rahman, Kuala Lumpur.
1968		Standard Confectionery moved into its own premises.
1978		Awarded the franchise to manufacture Big Sister Fruit Cakes
1985		Standard Confectionery opened another factory in Taman Wahyu Light Industrial Area, Kuala Lumpur
1989		Standard Confectionery purchased a new $3.3 million factory in Taman Usaha Ehsan, Kepong, to produce SILVER BIRD frozen cakes.
1990		Launch of Malaysia 1st frozen cakes on Standard Confectionery's 30th anniversary. Awarded a contract to supply mooncakes and fruitcakes to Amway.
1991		Awarded Product Excellence by our Prime Minister, Yang Berhormat Dato' Seri Dr. Mahathir for frozen cakes, first export of frozen cakes to Japan by a Malaysian company.
1992		Awarded a contract to supply bakery products to Malaysia Airline System. Factory expansion to total land of 50,000 sq. ft.
1994		Start-up of Asia Food as trading of bakery raw materials & ingredients and Asia Food Link of warehousing, distribution & management services for the food industry.
1996		Start-up of Madeleine Foods as centralised production and warehousing facility.

1997    The SILVER BIRD Group came into existence via a scheme of merger and acquisition between all the 

            companies. SILVER BIRD Group is involved in  manufacturing of frozen bakery product, chain bakery / 

            cafe retail outlet and supply of bakery logistics.Start-up of Madeleine Cafe Sdn Bhd as bakery-     

            cafe.Start-up of Madeleine Bakery Sdn Bhd as operator of bakery-cafes on a  take-away basis .

1999    Won the Enterprise 50 award. (Standard Confectionery Sdn Bhd was ranked  number 16 among 

            the 50 winners)

·         Year 2000 and ahead

2000          Won the Enterprise 50 award SILVER BIRD Group Bhd was ranked number  10 amongst the 50 winners).Awarded ISO 9001. Accredited by Lloyd's London.

2001          SILVER BIRD Group Bhd was successfully listed on the Second Board of the MSEB.  

2003    Won the Enterprise 50 award (Stanson Group Sdn. Bhd. was ranked number 8 amongst the 50       

             winners).Corporate office and centralised production facilities in Shah Alam

             2004  SILVER BIRD Group Bhd successfully transferred its listing to the Main Board of the MSEB.                

            Official opening on 26 Oct 2004 of High 5 Bread Town, Malaysia  1st of its kind   museum dedicated 

            to the legacy of bread located within the SILVER BIRD Complex at Shah Alam.

2005    Official opening of SILVER BIRDComplex on 25 March 2005 by Yang   Berhormat Dato’          

            Seri Rafidah Aziz, Minister of International Trade and Industry.Signing Ceremony for Joint Venture in 

           SILVER BIRD International  Sdn Bhd with Employees Provident Fund Board, Mayban Ventures Sdn 

           Bhd and Silver Bird Group Berhad on 29 April 2005.

2007    Awarded Food Safety Management System Standard, ISO 22000:500 on  22/02/2007. Accredited 

            by Lloyd's Register Quality Assurance, London

3.4 The Key People

·         BOARD OF DIRECTORS

-          Dato’ Dr Gan Khuan Poh (Chairman/Independent Non-Executive Director)

-          Dato’ Jackson Tan Han Kook (Group Managing Director)

-          Ching Siew Cheong (Group Executive Director)

-          Lim Hock Chye(Independent Non-Executive Director)

-          Richard George Azlan bin Abas(Independent Non-Executive Director)

-          Dato’ Seri Talaat bin Husain (Independent Non-Executive Director)

-          Peter John McLoghlin (Non-Independent Non-Executive Director)

-          Dato’ Lee Kok Chuan (Non-Independent Non-Executive Director)

-          Adi Azuan bin Abdul Ghani (Non-Independent Non-Executive Director)

-          Vanda Russell Gould (Non-Independent Non-Executive Director) (Alternate Director to Peter John McLoghlin)

·         AUDIT COMMITTEE

-          Richard George Azlan bin Abas (Chairman)

-          Lim Hock Chye (Member)

-          Dato’ Lee Kok Chuan(Member)

·         NOMINATION COMMITTEE

-          Dato’ Dr Gan Khuan Poh  (Chairman)

-          Richard George Azlan bin Abas  (Member)

-          Dato’ Seri Talaat bin Husain (Member)

·         REMUNERATION COMMITTEE

-          Lim Hock Chye (Chairman)

-          Peter John McLoghlin (Member)

-          Richard George Azlan bin Abas(Member)

·         SYARIAH PANEL

-          Datuk Abu Hasan Din Al Hafiz (Chairman)

-          Dato’ Hj Kamaruddin bin Hj Zakaria (Member)

-          Associate Prof. Dr Siti Salwani binti Razali (Member)

-          Dato’ Seri Talaat bin Husain  (Member)

·         COMPANY SECRETARY

-          Tan Fong Shian @ Lim Fong Shian

3.5 Location and Subsidiaries

Silver Bird Group Berhad is a Malaysia-based investment holding company. The Company has 13 subsidiaries, including Stanson Bakeries Sdn. Bhd., which is engaged in the manufacture of bread; Standard Confectionery Sdn. Bhd., which is engaged in the manufacture of frozen and daily fresh/shelf-stable bakery goods; Stanson Marketing Sdn. Bhd., which is engaged in the sales and distribution of bakery goods and telecommunication products; Silver Bird Foods (S) Pte. Ltd., which is engaged in the sales and distribution of bakery goods and Silver Bird International Sdn. Bhd.

Location

       Head Office

·         Silver Bird Group Berhad

Lot 72, Persiaran Jubli Perak,

Seksyen 21, 40000 Shah Alam,

Selangor Darul Ehsan, Malaysia.

Tel : 03-5192 2888 (16 lines) Fax : 03-5192 2266

www.silverbird.com.my

Subsidiaries

·         High 5 Bread Town Office

Stanson Marketing Sdn Bhd

Lot 72, Persiaran Jubli Perak,

Seksyen 21, 40000 Shah Alam,

Selangor Darul Ehsan, Malaysia.

Tel : 03-5192 2888 (16 lines) Fax : 03-5192 2266

Email: enquiry@high5breadtown.com

http://www.high5breadtown.com

·         Stanson Marketing Sdn Bhd

B-48, Jalan IM 3/11,

 Bim Point, Indera Mahkota,

 25200 Kuantan.

Tel: 09-572 1161  Fax: 09-573 2273

·         Stanson Marketing Sdn Bhd

1085-B, Tingkat Satu,

 Jalan Sultan Sulaiman,

 20000 Kuala Terengganu

Tel: 09-631 5122

·         Stanson Bakery Sdn Bhd

Lot 5729 Mukim Sentul Kawasan Perindustrian Nilai,

Nilai, Negeri Sembilan,

71800, Malaysia

Tel: 606-799 4291

Fax: 606-799 4289

·         Stanson Group Sdn Bhd

Lot 72, Persiaran Jubli Perak,

Seksyen 21, 40000 Shah Alam,

Selangor Darul Ehsan, Malaysia.

Tel : 03-5192 2888  Fax : 03-5192 2266

·         Standard Confectionery sdn bhd

Lot 20, Jalan E1/4,

 Taman Eshan Industrial Estate,

 52100 Kepong, Selangor.

Tel: 03-6271 7711 Fax: 03-6274 7755

Lot 72, Persiaran Jubli Perak,

Seksyen 21, 40000 Shah Alam,

Selangor Darul Ehsan, Malaysia.

Tel : 03-5192 2888 (16 lines) Fax : 03-5192 2266

·         Silver bird foods pte ltd

7 Gul Circle #02-07 Singapore(629563)

Tel : 6863277  Fax: 65587949

3.6 Brands, Major Products and Services

Silver Bird Group Berhad is a Malaysia-based investment holding company. The Company operates in two segments: manufacturing and distribution of consumer food and distribution of telecommunication products.

Consumer Food

Products	White Breads, Buns, Cream Roll, Swiss Roll, Fruit Roll, Sausage Roll, Roti Kok, Frozen Tartlets, Pies, Sandwiches, Cookies and Muffins
Beverages	Energy Drinks
Services	Manufacturing and Distribution Services
Brand	Silver Bird and High 5

Telecommunication Products

The MultiCom Division deals in the sales and distribution of telecommunication products ranging from mobile pre paid cards, STD/IDD calling cards; call shop services, cellular phones and consumer airtime reload solutions. The business is divided into two distinct channels:

·         Traditional Handphone Outlets (THO)

·         Non Traditional Outlet (NTO)

Products	Basic Sim Pack, Extra Sim Pack, Youth Club Sim Pack, Top Up Ticket RM10, Top Up Ticket RM30, Top Up Ticket RM60, Top Up Ticket RM100
Services	Sales Services and Distribution Services
Brand	Hotlink

3.6.1 Organization

3.7 Corporate Vision

To be the leading home-grown consumer food and distribution group providing healthy and nutritious food to everyone.

3.8 Corporate Mission

To exceed the benchmarks of the market leaders of the industry segments of their core products.

3.9 Company’s Current Promotional Strategy

In brief, most of the promotional strategies that organized by Silver Bird are in the form of contests which allow consumers to participate and stand a chance to walk away with grand prizes. Other than just wining the prizes, but the contests literally educate the consumers with useful knowledge such as maintaining balance diets and understand the nutrition that human needs.

2011

·         “Bake us a LOVE Story” contest, by “like” the High 5 Facebook page and “like” the High 5’s Facebook note, and write your comment on the Facebook wall.  Each “love story” must be accompanied by an attachment of the participating product; High 5 Nutriwhite or High 5 Wholemeal only. Contest period from 1 February 2011 till 28 February 2011.

·      High 5 “Best Profile Picture” Contest, Snap a picture of enjoying any High 5 Bread ranges. Contest period from 6 December 2010 till 2 January 2011.

·         “I LOVE Fudgeez” Contest. Snap a photo of enjoying any flavor of Fudgeez and describing Fudgee-licious moment in 25 words or less, and upload to Facebook Fan Page. The top 2 “most likes” will win the grand prize.  Contest Period, 6 January 2011 till 14 January 2011.

·         “What’s Your Fudgeez Love Moment?” Contest. “Like” the Fudgeez Facebook page and “Like” this Note. Choose any 1 of Fudgeez’s awesome flavors (or you can choose all!) and share with us your own Fudgeez Love Moment, in no less than 20 words! Write your comment on our Facebook Wall. You may add a picture if it is relevant to your comment. Contest Period, 1 February till 28 February 2011.

3.10 Product Sales’ History

·         Cash Flow

·         Balance Sheet

·       Financial Statement

3.11 Current Marketing Objective

The High 5 market still has plenty of rooms for growth. Its market presence is still smaller compared to the largest competitor and Silver Bird is strategizing the followings to boost market penetration:

Short Term

·           Capture shelf space in 11,000 -12,000 retail outlets.

·           To boost sales per outlet comparable to the dominant competitor.

·           To gain customers’ loyalty by giving them a high quality products.

Long Term

·           Continuing re-investment in core business - this on-going effort provides financial support for capital projects with the aim of improving productivity and efficiency, which in turn will reduce cost and improve profits.

·           Investing in people - we believe that in order to recruit and retain the best people who are dedicated and committed, the company has to provide all the necessary resources, training and incentives to enable them to best utilize their skills.

·         Emphasizing on product & process R&D - for a company which prides itself for its high technology and innovative operations, Silver Bird invests heavily on R&D to enhance its technology base and product development. This will result in products which are higher in quality and have a distinct competitive edge.

·           Increasing focus on marketing and selling - it is the company's mission to increase sales through enhanced value of brands and unbeatable service to customers.

3.12 Media Expenditure

Silver Bird Group Berhad had invested RM30 million in Commercial since 2005. The RAM ratings reaffirms Silver Bird Group Berhad’s market position as the second-largest player in domestic premium-bread market, stable demand for its products, its extensive distribution network,  improved financial profile and large scale of promotional activities.