Hup Seng, the history of a M’sian biscuits and crackers company

Rising up, I’ve all the time had a pack of Hup Seng biscuits in my home. My household would dip it in Milo for a straightforward breakfast, or dunk it in a cup of tea over a gathering. 

And I’m positive that almost all Malaysian households would most likely have related tales.

However I’d wager that you just wouldn’t guess that it started in a small city in Johor and it began earlier than Malaysia was even, nicely, Malaysia.

Right here’s the near-century-old story of Hup Seng.

A modest household begin

In 1950, the 4 Kerk brothers from Batu Pahat, Johor began an F&B enterprise. Not one thing fancy like a restaurant or a restaurant, however a extra humble pursuit that’s nearer to the on a regular basis man’s residence. 

Underneath the Hup Seng model, they bought crackers, cookies, and biscuits round numerous cities within the space by van. 

As a substitute of the standard lorries, they opted to go along with a extra retro-looking car. The sort that’s synonymous with that point interval, as per the image under.

Having launched the enterprise within the Malay village of Parit Linau Kecil, the brothers confirmed that they understood the need of manufacturing halal merchandise and the extensive marketplace for it, and did simply that.

Eight years later, the family-owned enterprise started R&D to whip up “one of the best biscuit one can style”. That was the 12 months they launched the “Ping-Pong” crackers.

In line with Hup Seng’s web site, the identify “Ping Pong” got here from China’s win within the World Desk Tennis Championship that 12 months. You possibly can say it’s a silent nod to the founders’ ancestry.

It was in that very same 12 months that Hup Seng’s merchandise have been exported throughout Southeast Asia.

That mentioned, you could be stunned to know that the corporate solely expanded its manufacturing capability three years later to satisfy buyer calls for.

A rising empire produced from biscuits

The model grew regionally as nicely by retailing in grocery shops, procuring malls, and neighbourhood marts. This was how their merchandise made their approach to most households.

Half a decade after the model first started, Hup Seng Group was formally listed as Hup Seng Industries Berhad in KLSE (AKA Bursa Malaysia).

In 2005, the group acquired the newer native beverage firm referred to as In-Comix. Contemplating that the corporate produces instantaneous espresso combine and instantaneous tea, it served as pairing to Hup Seng’s biscuits.

In any case, most Malaysians want to have Hup Seng’s Ping Pong cream crackers by dipping them in a scorching drink, if not slathered with jam.

The corporate’s late chairman, Datuk Kerk Chu Koh, labored to acquire the Hazard Evaluation Important Management Level (HACCP) and British Retail Consortium (BRC) certifications for Hup Seng Industries (M) Sdn Bhd in 2008. 

And later in 2012, they obtained the ISO 22000:2005 certification, all to make sure that their merchandise’ security and high quality have been in step with international requirements.

Enterprise-wise, the model finally ceased using department warehouses in favour of a central warehouse. This helped to cut back its losses within the type of broken items that got here from a number of actions of inventory. 

The change additionally helped keep the freshness of Hup Seng’s merchandise and decreased transportation prices.

You possibly can even hypothesise that the model’s success is partly because of the steady pricing of Hup Seng’s merchandise’ major supplies—flour, sugar, and palm oil. 

The corporate is at present within the fingers of the second technology. Kuo Choo Music’s (one of many co-founders) nephews, Kerk Kar Han is Government Director whereas Teo Lee Teck is the chairman of In-Comix Meals Industries Sdn Bhd.

Then again, Kuo’s niece, Kerk Chian Tung, is the Government Director of the corporate. They’ve been within the household enterprise for many years. The third technology of the household is progressively becoming a member of the enterprise too.

In line with The Star, the corporate contributes to the livelihoods of virtually half of Batu Pahat’s townsfolk. It’s estimated that 2,000 of them are employed by Hup Seng Industries. 

The model’s crackers are additionally loved internationally in over 60 nations, with branches throughout Malaysia. 

With such a legacy, it’s onerous to think about this established nationwide enterprise can be below the scrutiny of netizens and accused of promoting cancerous meals. 

However that’s precisely what occurred a couple of years in the past.

Crumbs of a scandal from overseas

In October 2021, the Hong Kong Client Council introduced that 60 samples of pre-packed biscuits and crackers it examined contained cancer-inducing parts comparable to glycidol or acrylamide.

This included Hup Seng’s cream crackers. 

The model refuted the claims and reminded the media and customers alike that its cream crackers, produced and marketed in Malaysia, are protected for consumption and in step with native laws on high quality requirements and meals security.

Malaysia’s Ministry of Well being (MoH) got here to the protection of Hup Seng, in addition to a number of different native biscuit producers implicated within the report.

Then-Director Normal of Well being, Tan Sri Dr Noor Hisham Abdullah, mentioned the typical stage of acrylamide content material in biscuits and crackers discovered regionally is under the benchmark set by European Fee Rules.

Unsurprisingly, although, Hup Seng’s status suffered a burn as its share costs dropped 7% over a span of 5 buying and selling days, following the warmth of the information.

However Malaysians are usually each forgiving and forgetful.

As soon as the controversy died down, Hup Seng’s enterprise picked up its tempo once more. Malaysians continued shopping for their beloved biscuits and their commerce progressively recovered.

Nonetheless a lot to get cracking about

About two months in the past in February 2023, it was reported that Hup Seng Industries will as soon as once more be having a difficult 12 months. 

It’s because the working setting stays extremely aggressive, particularly after the pandemic. However the group reassured that they are going to be cautious and keep vigilant.

In a submitting with Bursa Malaysia, the corporate acknowledged, “The group will proceed to carefully monitor the motion of commodity costs, consider and regulate the pricing methods and/or re-size main merchandise when the necessity arises.”

Final 12 months, the group’s internet revenue for its final quarter rose to RM12.44 million from RM9.71 million, primarily resulting from improved gross sales.

So it looks like one of many nation’s favorite native biscuit manufacturers can be staying for fairly a while.

Study extra about Hup Seng right here.
Learn different articles we’ve written about Malaysian startups right here.

Featured Picture Credit score: Hup Seng