In a ground-breaking move from the food and beverage world, Singapore-listed ThaiBev has shared their ambitious investment plan, involving an impressive 7 billion baht aimed at augmenting their presence domestically and globally. Thapana Sirivadhanabhakdi, the dynamic CEO, informed that a hefty 4 billion baht has been set aside for erecting a new beverage plant in Cambodia, while the remaining 3 billion will fuel logistics facilities, a 21st-century biogas factory, and other strategic maneuvers.
Aligning with the rebound in tourism and the invigoration of the food and beverage sector, ThaiBev is fortifying their brand’s robustness and polishing their competitive edge. Their expansion strategy is hinged on achieving sustainable growth resting on the triumvirate of growth, sustainability, and enablement, which includes market diversification, product portfolio enhancement, and catering to the ever-shifting consumer demands.
Head of ThaiBev’s beer product group, Michael Chye Hin Fah, has disclosed an exciting venture. The company is constructing their inaugural beer production plant in Cambodia. This facility, slated for completion within two short years, boasts an impressive production capacity of 50 million hectoliters yearly, marking ThaiBev’s entry into Cambodian brewing territory.
Fah also drew attention to the recovery in ThaiBev’s beer business in Thailand, sparked by the revival of economic activity and the return of the global travel and tourism industry. On the flip side, their Vietnam operations face a challenging landscape, marred by weak consumption in the face of macroeconomic challenges.
Executive Vice-President of ThaiBev, Prapakon Thongtheppairot, revealed an exciting development. The company is rapidly expanding its footprint in the international premium spirit market, thereby enriching their portfolio of top-tier spirits and enhancing its distribution capabilities through acquisitions like Larsen Cognac and the Cardrona Distillery, reported Bangkok Post.
ThaiBev is also investing significantly in their booming food business. Nongnuch Buranasetkul, their Senior Vice-President, detailed an allocation of 800 million to 1 billion baht to bolster their food business in this fiscal year, with a sharp focus on renowned names like KFC and Oishi. The company has blueprints for launching 50 to 60 brand-new restaurants this fiscal year.
During the first nine months of this fiscal year, ThaiBev added 43 restaurants, propelling the total count of outlets to an impressive 771 as of June this year. Despite escalating costs associated with raw materials, utilities, labor, and pre-opening expenses for new ventures, the company’s food service division posted 19.2% year-on-year growth and a revenue of 14.3 billion baht in the first nine months, concluding on June 30 this year.
In terms of overall performance, by the end of June this year, ThaiBev had garnered revenues of 216 billion baht, marking a substantial 3.8% growth year by year. Much of this credit goes to sales revenue donations from all their business segments, accelerated by the revival of Thailand’s tourism industry and a vibrant economic sphere. For more such interesting stories, The Thaiger’s Facebook page is your go-to source.