Thai Preserved Food Factory is investing Bt10 million on reinforcing its position as leader in the dehydrated soup market.
The company, manufacturer and distributor of instant and dried noodles under the brand of Wai-Wai and Quick Formula, said yesterday that it wanted to directly focus on its target group.
Managing director Benyapha Prinnarat said the company has been receiving good feedback after it launched dehydrated pork and chicken flavoured soup powder under the "Rod Dee" brand at the beginning of this year.
In response to a higher demand, she said, the firm has added two new flavours - spicy soup with lemon and spicy soup - to its list of dehydrated soup products in the second half of this year.
The company plans to penetrate the low-income market by setting up booths at open markets as well as making its products available at retail and wholesale stores nationwide.
Rod Dee currently holds 62 per cent of the dehydrated soup market, which is known to grow 30 per cent annually. Currently, the total dehydrated soup market accounts for Bt5 billion.
Benyapha said the company expects Rod Dee's market share to be boosted by 5 per cent this year, and by up to 10 per cent next year.
Wednesday, August 26, 2009
MAMA MAKER SEES GREEN SHOOTS OF RECOVERY IN NOODLE SALES
Thai President Foods, the maker of Mama instant noodles, is bullish over the prospects of a recovery in the Thai and global economies after it reported double-digit sales growth for the first six months of the year.
"The economy has [probably] bottomed out, as domestic sales and foreign orders have returned. As well, the latest US economic indicators are not as bad as expected. Still, the recovery may not be V-shaped. That means we need to monitor the situation closely," said president Pipat Paniangvait.
Meanwhile, the University of the Thai Chamber of Commerce's latest survey showed consumer confidence rose in July for the second consecutive month as a result of the government's measures to boost the economy.
Consumers are, however, concerned about the impact of rising oil prices and the type-A (H1N1) flu outbreak, the survey found.
Finance Minister Korn Chatikavanij yesterday said the US Federal Reserve's decision to keep its key lending rate at 0-25 per cent was a further signal of improved global economic conditions.
But he said the situation was remained volatile, as Thailand relied heavily on exports. Economic recovery could lead to higher oil prices and negatively affect operating costs and domestic spending.
Still, he believes the Thai economy will swing back into positive territory in the final quarter of the year, due to the government's stimulus package.
Thai President Foods achieved 13-per-cent annualised sales growth in Mama in the first half, against expectations of 9 per cent, thanks to two new flavours: chicken soup and egg. Launched in March, the new flavours now enjoy a 5-per-cent share of the instant-noodle market.
Pipat said Mama exports also increased, by 21 per cent year-on-year in the first half, against 19 per cent a year ago, as the company had expanded into new markets like Peru and Romania.
The company will increase production capacity of the new flavours. It is in talks with a Japanese manufacturer to buy two machines for Bt160 million that will increase Mama production capacity by 7 million sachets a day next year, from 6.2 million now, he said.
Thai President Foods also plans to increase its exports of cup noodles next year. It is talking to an agent in Hong Kong about distribution, either through the Mama brand or an original-equipment manufacturing deal.
Despite the good first half, Thai President Foods is maintaining its estimate for full-year sales growth for all its products at 12.5 per cent to Bt9 billion, from Bt8 billion last year.
Although instant-noodle sales have grown, its confectionery products suffered a sales drop of 20 per cent in the first half. The overall Thai confectionery market fell 30 per cent in the period.
"The economy has [probably] bottomed out, as domestic sales and foreign orders have returned. As well, the latest US economic indicators are not as bad as expected. Still, the recovery may not be V-shaped. That means we need to monitor the situation closely," said president Pipat Paniangvait.
Meanwhile, the University of the Thai Chamber of Commerce's latest survey showed consumer confidence rose in July for the second consecutive month as a result of the government's measures to boost the economy.
Consumers are, however, concerned about the impact of rising oil prices and the type-A (H1N1) flu outbreak, the survey found.
Finance Minister Korn Chatikavanij yesterday said the US Federal Reserve's decision to keep its key lending rate at 0-25 per cent was a further signal of improved global economic conditions.
But he said the situation was remained volatile, as Thailand relied heavily on exports. Economic recovery could lead to higher oil prices and negatively affect operating costs and domestic spending.
Still, he believes the Thai economy will swing back into positive territory in the final quarter of the year, due to the government's stimulus package.
Thai President Foods achieved 13-per-cent annualised sales growth in Mama in the first half, against expectations of 9 per cent, thanks to two new flavours: chicken soup and egg. Launched in March, the new flavours now enjoy a 5-per-cent share of the instant-noodle market.
Pipat said Mama exports also increased, by 21 per cent year-on-year in the first half, against 19 per cent a year ago, as the company had expanded into new markets like Peru and Romania.
The company will increase production capacity of the new flavours. It is in talks with a Japanese manufacturer to buy two machines for Bt160 million that will increase Mama production capacity by 7 million sachets a day next year, from 6.2 million now, he said.
Thai President Foods also plans to increase its exports of cup noodles next year. It is talking to an agent in Hong Kong about distribution, either through the Mama brand or an original-equipment manufacturing deal.
Despite the good first half, Thai President Foods is maintaining its estimate for full-year sales growth for all its products at 12.5 per cent to Bt9 billion, from Bt8 billion last year.
Although instant-noodle sales have grown, its confectionery products suffered a sales drop of 20 per cent in the first half. The overall Thai confectionery market fell 30 per cent in the period.
New flavours help Mama first-half sales surge 13%
Thai President Foods Plc, the manufacturer of Mama instant noodles, saw its first-half sales rise by 13% from the same period last year.
The Saha Group's SET-listed affiliate posted double-digit growth for the first time in a decade and outpaced the 3%growth posted for the overall instant noodle industry.
The sharp growth was driven mainly by the launch of two new flavours in the first quarter - chicken soup and egg protein - priced at 5 baht per pack, one baht cheaper than its regular products.Sales of instant noodles typically increase in times of economic weakness as consumers cut back on restaurant spending.
TF president Pipat Paniengvate said the budget instant noodles had helped boost Mama's overall market share every month since April.
Its market share rose to 53.9% in July up from 53.4% in the previous month.
Sales of TF's snack products dropped by 20% in the first half while the industry declined by 40%.
Due to the better-than-expected response to its new flavours, TF will introduce them in a cup format for 10 baht,compared to the normal 13 baht. Mr Pipat expects to gain about a 5% share from the new cup noodles, with sales of 40,000 to 60,000 cases per month. The new cup noodles should help expand Mama's this year by 10%, compared to the industry projection of 3-5% growth in a market worth 11 billion baht.
Mr Pipat believes the economy has hit bottom now as unemployment in the US is declining.
"We are receiving new orders from our partners overseas," he said.
The company's exports of instant noodles rose 25% in the first half.
TF plans to aggressively move into international markets in the second half to create new demand.
It currently sells Mama in five zones overseas now and wants to open at least one new market in each trade zone every year.
Because of local and overseas demand,the company will spend 160 million baht to install two new machines at its Si Racha factory in the second half. Overall capacity will increase by 10% to 7 million packages per day.
Mr Pipat expects the company's total sales - instant noodles, biscuits and snacks - to grow by 10% to at least 8 billion baht by the end of 2009.
TF shares closed yesterday on the Stock Exchange of Thailand at 510 baht,up six baht, in trade worth 765,000 baht.
The Saha Group's SET-listed affiliate posted double-digit growth for the first time in a decade and outpaced the 3%growth posted for the overall instant noodle industry.
The sharp growth was driven mainly by the launch of two new flavours in the first quarter - chicken soup and egg protein - priced at 5 baht per pack, one baht cheaper than its regular products.Sales of instant noodles typically increase in times of economic weakness as consumers cut back on restaurant spending.
TF president Pipat Paniengvate said the budget instant noodles had helped boost Mama's overall market share every month since April.
Its market share rose to 53.9% in July up from 53.4% in the previous month.
Sales of TF's snack products dropped by 20% in the first half while the industry declined by 40%.
Due to the better-than-expected response to its new flavours, TF will introduce them in a cup format for 10 baht,compared to the normal 13 baht. Mr Pipat expects to gain about a 5% share from the new cup noodles, with sales of 40,000 to 60,000 cases per month. The new cup noodles should help expand Mama's this year by 10%, compared to the industry projection of 3-5% growth in a market worth 11 billion baht.
Mr Pipat believes the economy has hit bottom now as unemployment in the US is declining.
"We are receiving new orders from our partners overseas," he said.
The company's exports of instant noodles rose 25% in the first half.
TF plans to aggressively move into international markets in the second half to create new demand.
It currently sells Mama in five zones overseas now and wants to open at least one new market in each trade zone every year.
Because of local and overseas demand,the company will spend 160 million baht to install two new machines at its Si Racha factory in the second half. Overall capacity will increase by 10% to 7 million packages per day.
Mr Pipat expects the company's total sales - instant noodles, biscuits and snacks - to grow by 10% to at least 8 billion baht by the end of 2009.
TF shares closed yesterday on the Stock Exchange of Thailand at 510 baht,up six baht, in trade worth 765,000 baht.
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