Phuket business: Local suppliers to extend reach

PHUKET: Red Bull’s national distribution arm is looking to capitalize on local supply markets, a strategy which could extend the reach of Phuket-sourced products into greater national, regional and global markets.

Durbell, a key logistics affiliate of the Red Bull Beverage Company (the producers of Krating Daeng) aims to diversify its offerings and keep ahead in the expanding wholesale and retail business.

A report in The Nation recently revealed that the company is investing 500 million baht in domestic expansion projects, which include the purchase of 300 new transport trucks, as well as new warehouses in Chanthaburi and Phuket.

Confirming that report, a spokesperson from Durbell told the Phuket Gazette, “We are prepared to invest in a new warehouse in Phuket to keep up with increasing demand.”

“Phuket’s current warehouse is at capacity and its location [next to the Metropole Hotel in Phuket Town] is inconvenient for our transport needs.

“We’re looking for about 4 to 5 rai (6400 to 8000 square meters) somewhere outside of town and expect the construction budget to be up to 50 million baht,” he said.

Speaking on condition of anonymity, the spokesperson confirmed that Durbell is shifting its marketing strategy to be more decentralized and regionally integrated.

“One competitive advantage local supply markets have is lower production costs. What we can offer to local producers and suppliers is experienced logistics to move the product swiftly and efficiently,” the spokesperson said.

Indeed, the regional wholesale and resale market is expanding, and Durbell’s current business strategy reflects this remarkable trend.

Currently, 90 per cent of Durbell’s national distribution lines are supplied with Red Bull Beverage products, while 10 per cent of their products come from non-Red Bull suppliers.

The company’s target for 2012 is to double the proportion of non-network suppliers to supply 20% of its distributions, with the other 80% of products continuing to come from within the Red Bull supply network.

At the end of five years, the company aims to source half of its supplies from its mother company, and half from local supply markets.

Durbell’s main Southern region warehouse and office are located in Surat Thani – one of 13 regional offices nationwide – with regional sub-warehouses located in Phuket, Krabi, Phang Nga, Ranong, Chumphon, Nakhon Sri Thammarat and Prachuap Khiri Khan.

— Steven Layne