ThaiBev expansion: 7 billion baht investment includes new Cambodia factory
ThaiBev, the Singapore-listed food and beverage company, announced an investment plan of 7 billion baht for the expansion of its operations both domestically and internationally. The company’s CEO, Thapana Sirivadhanabhakdi, revealed that 4 billion baht will be used to construct a new beverage factory in Cambodia, while 3 billion has been set aside for logistics facilities, a biogas factory, and other strategic initiatives.
Acknowledging the revival of tourism and the food and beverage industries, Thapana stated that the company is taking steps to strengthen its brand and improve its competitive position.
ThaiBev expansion aims to achieve sustainable growth through three strategic pillars: growth, sustainability, and enablement. This includes diversification of market presence, expanding the product portfolio, and meeting evolving consumer demands.
Michael Chye Hin Fah, head of ThaiBev’s beer product group, disclosed that the company is building its first beer production plant in Cambodia, scheduled for completion within two years. This new facility, capable of producing 50 million hectolitres per year, signifies ThaiBev’s first brewery factory in Cambodia.
ThaiBev’s beer business in Thailand has seen recovery due to rebounding economic activities and returning tourists. However, the company’s business in Vietnam is facing challenges due to weak consumption amid macroeconomic headwinds, Fah noted.
Prapakon Thongtheppairot, executive vice-president, group chief financial officer, and head of the spirit product group, stated that the company aims to expand its presence in the international premium spirit market. ThaiBev has significantly expanded its international portfolio of branded premium spirits and strengthened its distribution networks through the acquisition of Larsen Cognac and the Cardrona Distillery, reported Bangkok Post.
Investment in Food Business
Nongnuch Buranasetkul, senior vice-president and chief of food business in Thailand, said ThaiBev aims to invest 800 million to 1 billion baht to expand its food business in the current fiscal year, focusing on KFC and Oishi. The company plans to open 50 to 60 new restaurants this fiscal year.
In the first nine months of the company’s year fiscal, ThaiBev launched 43 restaurants, bringing the total number of outlets to 771 as of June this year. Despite rising costs related to raw materials, utilities, labour and pre-opening expenses for new stores, the company’s food business posted year-on-year growth of 19.2% and 14.3 billion baht in revenue for the first nine months, ending on June 30 this year.
In the first nine months of this year, ending June 30, ThaiBev reported revenues of 216 billion baht, a 3.8% increase year on year.
The higher revenues were credited to improved sales revenue contributions from all its business segments, driven by increased economic activities and the recovery of Thailand’s tourism industry.
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