Sappe Plc invests 1 billion baht in warehouse automation amidst wage hike

SAPPE launches "SAPPE Inyang X Hua Chiew", in collaboration with Huachiew Chalermprakiet University, Image via Facebook, The Bangkok Journal

Sappe Plc, a leading beverage manufacturer, unveiled plans to construct an automated warehouse, establish a new production line, and implement a cost reduction scheme in response to the government’s commitment to increase the daily minimum wage.

Piyajit Ruckariyapong, the company’s CEO, disclosed that the project is expected to cost around 1 billion baht between 2023 and 2024.

Out of the total expenditure, 300 million baht will be allocated for constructing a new automated warehouse in Pathum Thani province, with operations anticipated to commence by the end of this year. The remaining budget will be directed towards setting up a new production line, supporting a cost reduction scheme, and installing new machines in 2023 to facilitate future growth. Piyajit said…

“We don’t have a policy to reduce our workforce because we keep on investing to drive our sales to reach 10 billion baht by 2026. We have already begun outsourcing certain products to original equipment manufacturers.

“Fortunately, our business has not been significantly affected by the delay in forming a government, as 85% of our revenue is derived from international markets. While we do have a cannabidiol [CBD] beverage in our portfolio, its sales contribution remains below 1%. We are closely monitoring the policies surrounding this product category before making further decisions.”

The company plans to continue partnering with other organisations to develop innovative products and establish its new S-curve products. Yesterday, Sappe announced a collaboration with Huachiew Chalermprakiet University to launch two new Chinese herb-based dietary supplements under the “Sappe Inyang X Hua Chiew” brand. These supplements cater to the “silver age” group and address the needs of individuals who work late nights, have little rest, and struggle with sleep.

Piyajit explained that the dietary supplement products were developed in response to the growing global demand for such products and vitamins due to the pandemic, which has led people to prioritise their health. Additionally, Thailand’s shift towards an ageing society has resulted in consumers focusing more on their immune systems. The increasing worldwide demand for natural ingredients and herbal-based products has driven the use of herbs in various forms, including food, beverages, medicines, and dietary supplements.

Initially introduced online this month, the Sappe Inyang X Hua Chiew products will be extended to offline channels next month. Given the broad acceptance of Chinese medicine in many countries, the company aims to export these new dietary supplements internationally.

According to Piyajit, the Sappe Inyang X Hua Chiew brand will play a crucial role in driving sales of Sappe’s supplement product portfolio to reach 500 million baht in five years, or 5% of total revenue.

Weerachai Suthithanthawat, a lecturer at Huachiew Chalermprakiet University’s Faculty of Traditional Chinese Medicine, said the collaboration allows the university to hold a licence for the herbs used in the formulas, while Sappe owns the patent for the product formulations, reported Bangkok Post.

Business News

Join the conversation and have your say on Thailand news published on The Thaiger.

Thaiger Talk is our new Thaiger Community where you can join the discussion on everything happening in Thailand right now.

Please note that articles are not posted to the forum instantly and can take up to 20 min before being visible. Click for more information and the Thaiger Talk Guidelines.

Alex Morgan

Alex is a 42-year-old former corporate executive and business consultant with a degree in business administration. Boasting over 15 years of experience working in various industries, including technology, finance, and marketing, Alex has acquired in-depth knowledge about business strategies, management principles, and market trends. In recent years, Alex has transitioned into writing business articles and providing expert commentary on business-related issues. Fluent in English and proficient in data analysis, Alex strives to deliver well-researched and insightful content to readers, combining practical experience with a keen analytical eye to offer valuable perspectives on the ever-evolving business landscape.