Tipco in a jam: Canned pineapple production goes pear-shaped

In a move that’s left pineapple fans in a bit of a jam, Tipco Foods announced it’s putting the brakes on its canned pineapple production and sales. Thanks to wildly fluctuating pineapple supply and prices, the company has decided to shelve its tinned treats, despite this impacting up to 22% of Tipco’s total food business sales.

But don’t go bananas just yet – Tipco Pineapple Company isn’t completely peeling out. The company clarified that it’s not closing the entire operation, just pausing the canned pineapple escapade.

Yesterday, September 29, Tipco Foods addressed the public through its Tipco Health Society Facebook page, responding to recent reports about the company’s subsidiary, Tipco Pineapple Limited.

The announcement detailed that operations related to canned pineapple production and sales would cease, effective immediately. However, Tipco Pineapple Limited’s other operations will continue as usual.

The primary reason for this move stems from persistent volatility in the supply and pricing of pineapples, a common issue for commodity products. The canned pineapple segment, which Tipco produces under client brands exclusively for export, has become less viable due to these fluctuations.

This segment accounts for 22% of Tipco’s total food business sales.

Tipco Foods plans to introduce new products to utilise other machinery at the factory, unrelated to canned pineapple production, to compensate for the lost revenue.

Other products within the Tipco food business, including Tipco-branded fruit juices, Hom Suwan pineapples, Aura mineral water, and various extract-based products, will continue to be produced and sold without interruption.

Tipco is committed to handling this transition in compliance with legal requirements and fairness towards all stakeholders, including partners, employees, and other interested parties. The company will provide severance pay and other benefits to affected employees in accordance with labour protection laws.

Additionally, some employees may be reassigned to other departments or subsidiaries within the company.

Tipco Foods reassured that this change is part of their ongoing strategy to adapt to market conditions and maintain the overall health of their business portfolio. The company remains focused on its diverse range of products and continues to innovate and expand its offerings to meet consumer demands.

The message concluded with the company emphasising their dedication to operating transparently and responsibly, ensuring minimal disruption to their workforce and maintaining the trust of their clients and consumers, reported KhaoSod.