Yeo Hiap Seng

Yeo Hiap Seng Limited (YHS) is known as a food and beverage manufacturer and distributor. Listed on the Singapore Exchange since 1969, it has grown from being a family-owned and -controlled business to one with an international reach. Its products are distributed in more than 55 countries. YHS has also diversified into property development, building a number of condominiums and landed properties. In the mid-1990s, control of YHS passed from the Yeo family to Ng Teng Fong’s Far East Organization.

History
In 1901, Yeo Keng Lian set up the Hiap Seng (later Yeo Hiap Seng) shop, which made and sold soya sauce in Zhangzhou, Fujian province, China. His eldest son, Yeo Thian In, took over the business before moving to Singapore in 1938 to escape the Sino-Japanese War. He established the Yeo Hiap Seng Sauce Factory, located at the junction of Outram Road and Havelock Road, and opened for business on 18 September 1938.¹ Business was bad due to keen competition. This was exacerbated by the local practice of soya sauce vendors selling Cantonese-style sauce in bulk door-to-door, while Yeo’s bottled Hokkien-style soya sauce was sold in provision shops.² As a result, Thian In asked his brother Thian Kiew to come to Singapore to help with marketing the product.³

Japanese Occupation (1942–45)
The factory sustained bomb damage in January 1942 during World War II. Because of the damage it had suffered, YHS was spared the fate of other soya sauce factories whose stocks were seized by the invading Japanese.⁴ The factory was thus able to maintain production during the Japanese Occupation. The company persisted in sourcing the raw materials, beans, salt, sugar, which were needed to continue operations despite the high black-market prices.⁵

Postwar years
In 1947, after the war, YHS expanded its production by purchasing 8 ac of land in Bukit Timah to set up a new factory.⁶ Yeo quickly expanded his business in the early 1950s to producing canned food and bottled beverages. The company starting with tinned chicken curry in 1953 and Beanvit, a vitamin-fortified soy milk drink, in 1954.⁷ Beanvit was developed by Chen Chee De, the son of Yeo’s eldest sister.⁸ Both products were pioneering products that proved popular.⁹

YHS went into the production of tinned food in 1953, canning curries, pork, pickles, seafood and vegetables.¹⁰ The company expanded its range of sauces, and by 1955 was producing around 224,000 bottles of sauce each month and nearly two million cans of food each year. Roughly two-thirds of the output were for the Singapore and peninsular Malaya markets, while the rest was exported to Borneo, Indonesia and New Guinea.¹¹

Besides soy milk, YHS also started bottling other drinks such as iced tea, sugarcane juice and water chestnut.¹² It has been posited that YHS’s success in the soft-drinks market was because it catered to Chinese tastes, a market segment that the dominant company, Fraser & Neave (F&N), had ignored.¹³

In 1955, the business was incorporated as a private-limited company and renamed Yeo Hiap Seng Canning and Sauce Factory Private Limited as more family members joined the business. On 1 August 1956, an agreement was signed to divide the ownership of the company among Yeo Thian In and four of his brothers – Thian Soo, Thian Kiew, Thian Seng and Tian Hwa, as well as two of Yeo Keng Lian’s grandsons, Chee Ming and Chee Kiat.¹⁴ The five brothers played different management roles, complementing each other, while Chee Kiat was acknowledged as the technical expert in running the factory and coming up with new products.¹⁵ Chee Ming received a share because he was the eldest grandson.¹⁶

Expansion
By 1957, YHS was producing 12,000 bottles of sauce and 20,000 cans of food per day.¹⁷ During the next decade, the company’s markets grew to include all of Malaysia, Hong Kong and Australia.¹⁸ In 1967, the company also became the first food manufacturer in the region to package soft drinks in rectangular Tetra Brik cartons rather than the traditional bottle.¹⁹

The company became publicly listed in Singapore in March 1969, changing its name to Yeo Hiap Seng Limited and increasing its authorised capital from S$2 million to S$10 million.²⁰ To ensure that the Yeo family remained in control over the company, Yeo Hiap Seng Holdings was set up to hold a 49-percent stake in the company.²¹

YHS subsequently secured an agreement to bottle and mark the Canada Dry line of drinks, placing it in direct competition with F&N.²² YHS-produced Canada Dry entered the market in 1971.²³ Only few years later in 1974, YHS secured the rights for Pepsi Cola after the local Pepsi distributor, Union, had closed down due to trade union problems.²⁴

In 1975, YHS’s subsidiary, Yeo Hiap Seng (Malaysia), was listed on the Kuala Lumpur Stock Exchange.²⁵ By the 1980s, YHS had become the second-biggest drinks manufacturer in Singapore and Malaysia after F&N.²⁶ During the ’80s, YHS further expanded its manufacturing and distribution networks overseas, including the 1989 joint YHS–Temasek Holdings acquisition of Chun King, an American food manufacturer.²⁷ The US$52 million venture suffered large losses, however, and became a catalyst for a significant turning point in the company’s history.²⁸ The year 1985 also saw the passing of Thian In soon after he had handed the reins of the company to his son, Alan Yeo Chee Yeow.²⁹

Yeo family feud
During the early 1990s, a number of Yeo family members with stakes in YHS Holdings came into dispute with YHS chairman and chief executive Alan over his management style, direction of the company, and investment losses from the Chun King venture.³⁰ By late 1991, decisions within the Yeo family had begun to be made by majority vote.³¹ Management changes from 1992 onwards led to some Yeo family members being sidelined while new staff were brought in.³²

Alan’s nephew, Charles, joined the faction of shareholders seeking to oust Alan as chairman in June 1993.³³ In May 1994, the group blocked Wing Tai Holdings’ bid to acquire up to a 40-percent stake in the company.³⁴ Wing Tai, along with other local property developers, were looking to acquire underdeveloped Singapore land after depleting their own land banks in the 1980s.³⁵ YHS, with its 4.4 ha of land in Bukit Timah which the government had recently rezoned for residential use, was therefore an attractive target.³⁶ Wing Tai’s bid was supported by Alan, who hoped to utilise Wing Tai’s connections in China and its expertise to develop YHS’s Bukit Timah property.³⁷ After the Wing Tai deal failed, Alan went to court in May 1994 to petition to dissolve the family holding company.³⁸ This resulted in the division of the Yeo family’s collective 38.5-percent stake in the company being split up.³⁹

Meanwhile, one of Singapore’s biggest property developers, Ng Teng Fong, had been quietly buying YHS shares on the open market through one of his companies, Orchard Parade Holdings. After Yeo Hiap Seng Holdings had disposed of its YHS shares, Orchard Parade Holdings became the largest single shareholder of YHS with 21 percent of the shares in July 1994.⁴⁰ When Malaysian property magnate Quek Leng Chan started buying YHS shares in 1995, a takeover battle ensued between him and Ng.⁴¹ Although Quek bought up Alan’s shares and Charles allied himself with Quek, Ng won the takeover battle with a public offer of S$5.35 per share, acquiring majority control with three-quarters of YHS shares.⁴² The last member of the Yeo family in a senior management role at YHS was Yeo Chee Yan, a managing director of YHS Malaysia who retired in 1999.⁴³

Properties
With Ng in control, YHS moved quickly into real estate, vacating its Bukit Timah land in 1998 and moving its Singapore factory to Senoko.⁴⁴ YHS’s first property project was Tivoli Gardens in 1997, followed by more private housing projects. The properties developed on YHS’s Bukit Timah site between 1997 and 2012 are The Sterling, GardenVista and Jardin.⁴⁵



Author
Yulia Hartono



References
1. Lee Tee Jong and F. T. Liu, The Soy Sauce Towkay: The Story of Yeo Thian In, Founder of Yeo Hiap Seng Sauce Factory in Singapore (Singapore: Campus Crusade Asia Limited, 2010), 7, 9, 19–22, 25–26. (Call no. RSING 338.766458092 LEE)
2. Yeo Thian Seng, oral history interview by Tan Beng Luan, 23 September 1983, transcript and MP3 audio 27:50, Reel/Disc 4 of 19, National Archives of Singapore (accession no. 000298), 28.
3. Lee and Liu, The Soy Sauce Towkay, 26.
4. Yeo Thian Seng, interview, 23 September 1983, Reel/Disc 4 of 19, 30–31.
5. Lee and Liu, The Soy Sauce Towkay, 28–29.
6. “Five Brothers Outgrow a Factory,” Straits Times, 5 October 1947, 3. (From NewspaperSG)
7. “Yeo Hiap Seng’s Modern Sauce and Canning Factory,” Singapore Free Press, 29 October 1955, 33; “Striking Growth of Food Factory Over 20 Years,” Singapore Free Press, 3 June 1960, 18. (From NewspaperSG)
8. “Five Brothers Run Flourishing Sauce Factory and Cannery,” Singapore Free Press, 7 October 1955, 8 (From NewspaperSG); Jean Lee and Hong Li, “Yeo Hiap Seng: A Typical Case Study of a Family Enterprise,” in Wealth Doesn’t Last Three Generations: How Family Businesses Can Maintain Prosperity (Singapore: World Scientific, 2009), 23. (Call no. RSING 658.0450951 LEE)
9. Lee and Liu, The Soy Sauce Towkay, 46.
10. “Striking Growth of Food Factory Over 20 Years”; “Five Brothers Run Flourishing Sauce Factory and Cannery.”
11. “Five Brothers Run Flourishing Sauce Factory and Cannery.”
12. Lee and Liu, The Soy Sauce Towkay, 46.
13. “Introduction: Chinese Business Research in Southeast Asia,” in Chinese Business in Southeast Asia: Contesting Cultural Explanations, Researching Entrepreneurship, ed. Terence Gomez, Hsin-Huang Michael Hsiao (Richmond, Surrey: Curzon Press, 2001), 22. (Call no. RSING 338.040959 CHI)
14. Lee and Hong, “Yeo Hiap Seng: A Typical Case Study of a Family Enterprise,” 4, 24–26.
15. Lee and Liu, The Soy Sauce Towkay, 33–35; Chan Kwok Bun and Claire Chiang See Ngoh, Stepping Out: The Making of Chinese Entrepreneurs (Singapore: Centre for Advanced Studies, National University of Singapore, 1994), 282–83. (Call no. RSING 338.04089951 CHA)
16. Lee and Hong, “Yeo Hiap Seng: A Typical Case Study of a Family Enterprise,” 4, 25.
17. “‘Trade Outlook Not Bright’,” Straits Times, 8 January 1957, 12. (From NewspaperSG)
18. Lee and Liu, The Soy Sauce Towkay, 43, 52.
19. “Tetra Pak Package Deal for Yeo Hiap Seng,” Singapore Monitor, 2 September 1983, 15. (From NewspaperSG)
20. “Yeo Hiap Seng Limited,” Straits Times, 24 March 1969, 5; “Blue Chip Firmness Is Mart Feature,”  Straits Times, 29 March 1969, 19. (From NewspaperSG)
21. Lee and Liu, The Soy Sauce Towkay, 56; Gerry de Silva and Chan Sue Meng, “Alan Yeo Files Court Petition To Dissolve Holding Company,” Straits Times, 18 May 1994, 40. (From NewspaperSG)
22. Lee and Liu, The Soy Sauce Towkay, 46.
23. Croesus, “City Talk,” Straits Times, 26 July 1971, 15. (From NewspaperSG)
24. “Demands by Union Force Company To Close Down,” Straits Times, 27 October 1974, 4. (From NewspaperSG)
25. “Other Announcements,” Straits Times, 25 February 1975, 9; Lee Yew Meng, “Profits Take a Beating,” New Nation, 1 July 1975, 15. (From NewspaperSG)
26. Hock Lock Siew, “Battle for Lion’s Share of Drinks Market,” Business Times, 30 April 1980, 11. (From NewspaperSG)
27. Chuang Peck Ming, “Getting Singapore Into US Supermarkets,” Business Times, 21 July 1989, 10. (From NewspaperSG)
28. Amy Balan, “YHS Swallows Bitter Pill With $45M Write-Off on Chun King,” Business Times, 29 August 1994, 1; Richard Lim, “Yeo’s: So What Will Happen to the Natural Choice?” Straits Times, 17 July 1994, 4. (From NewspaperSG)
29. “Notice,” Straits Times, 28 August 1985, 38; “Obituaries,” Straits Times, 8 January 1985, 33; “Yeo Hiap Seng MD Is Also Chairman,” Straits Times, 19 August 1985, 20. (From NewspaperSG)
30. Gerry De Silva and Chan Sue Meng, “‘Model’ Family-Controlled Group Torn Asunder by Kin Rivalry,” Straits Times, 30 April 1994, 44. (From NewspaperSG)
31. Jennifer Tan, “Blood or Business Ties?” New Paper, 16 July 1994, 2. (From NewspaperSG)
32. De Silva and Chan, “‘Model’ Family-Controlled Group Torn Asunder by Kin Rivalry.”
33. Lim, “Yeo’s: So What Will Happen to the Natural Choice?”
34. Lee Han Shih, “Alan Yeo Loses Battle To Sell YHS To Wing Tai,” Business Times, 7 May 1994, 1. (From NewspaperSG)
35. Doreen Siow, “Rushing To Build Up Land Banks,” Straits Times, 16 May 1993, 4; Gerry de Silva and Chan Sue Meng, “Wing Tai Planning To Make Takeover Bid for Yeo Hiap Seng,” Straits Times, 23 April 1994, 48. (From NewspaperSG)
36. Lee Han Shih, “YHS Could Land a Small Fortune,” Business Times, 18 December 1993, 6. (From NewspaperSG)
37. Joyce Quek, “Alan Yeo Tells Employees Why He Backed Wing Tai,” Business Times, 17 May 1994, 17; Lee Han Shih, “Alan Yeo: I’ll Dissolve Holding Company Rather Than Sell Out,” Business Times, 6 May 1994, 1. (From NewspaperSG)
38. Joyce Quek, “Alan Yeo Petitions Court To Dissolve YHS Holdings,” Business Times, 18 May 1994, 1. (From NewspaperSG)
39. Genevieve Cua, “Alan Yeo Wins Court Battle To Wind Up YHS Holdings,” Business Times, 2 July 1994, 1 (From NewspaperSG); Quek, “Alan Yeo Petitions Court To Dissolve YHS Holdings.” 
40. “What Happened,” New Paper, 16 July 1994, 6. (From NewspaperSG)
41. Genevieve Cua, “Ng Teng Fong To Launch Takeover of Yeo Hiap Seng,” Business Times, 22 March 1995, 1. (From NewspaperSG)
42. Lee Han Shih, “YHS Battle Hots Up as FCC Moves To Boost Stake Further,” Business Times, 28 March 1995, 1; Goh So May, “Charles Yeo Joins Forces With Quek Leng Chan-Led Consortium,” Straits Times, 31 July 1995, 32; Genevieve Cua, “Teng Fong Wins YHS Fight, Quek Leng Chan Accepts Offer,” Business Times, 13 September 1995, 1. (From NewspaperSG)
43. AFX-Asia, “YHS(M) Managing Director To Retire,” Business Times, 20 August 1999, 16. (From NewspaperSG)
44. “YHS Will Shift Production Lines to New Senoko Factory,” Straits Times, 8 May 1997, 39; Lilian Ang, “Ex-Pepsi Man Joins YHS as Chief Operating Officer,” Business Times, 2 May 1998, 6. (From NewspaperSG)
45. Abdul Hadhi, “YHS To Sell Sterling Units at $1,100 Psf,” Business Times, 9 May 1997, 17; Vince Chong, “Over 150 New Homes To Be Released,” Business Times, 23 May 2003, 7; Jonathan Kwok, “Yeo’s Tops List of Best Performing Food Firms,” Straits Times, 1 December 2012, 7. (From NewspaperSG)



Further resources
Carol Eng, “Yeo Hiap Seng Positions Itself for the New Millennium,” Business Times, 16 August 1999, 2. (From NewspaperSG)

Chan Sue Meng, “Major Shareholders Withdraw Motion To Kick Out Alan Yeo,” Straits Times, 6 July 1994, 40. (From NewspaperSG)

“Charles’ Uncle,” Straits Times, 18 June 1994, 2. (From NewspaperSG)

Peter Hill, “Sauce for the Tables of Malaysia,” Singapore Free Press, 31 May 1950, 4. (From NewspaperSG)

“Yeo Family Rejects Wing Tai Takeover Offer,” Reuters, 5 May 1994. (From Factiva via NLB’s eResources website)

 

The information in this article is valid as at 2012 and correct as far as we are able to ascertain from out sources. It is not intended to be an exhaustive or complete history of the subject. Please contact the Library for further reading materials on the topic.