Kagome Co, a Japanese manufacturer and distributor of tomato-based foods and juices, has chosen Thailand as its springboard to branch out into Southeast Asia.
From left: Osotspa Kagome marketing manager Sureeporn Moeisawat, Kagome president Hidenori Nishi and Osotspa Kagome managing director Kazunari Yamamoto with their newtomato essence. SOMCHAI POOMLARD
It has teamed up with Osotspa Co, Thailand's leading consumer conglomerate, and Japan's Itochu Corporation to set up a joint venture called Osotspa Kagome Co to market Kagome's tomato essence locally.
The new firm has registered capital of 235 million baht.
The Tokyo-based Kagome holds a 43% stake, while Osotspa and Itochu hold 42% and 15%, respectively.
"Osotspa Kagome is our first joint venture in Southeast Asia. We are expanding business here because of the big population and because Thai consumers have busy lifestyles and are concerned about health," said Kagome president Hidenori Nishi on a visit to Thailand yesterday.
Kazunari Yamamoto, managing director of Osotspa Kagome Co, said Thais consume 4.6 kilogrammes of tomatoes per person per year compared with 12.6 kg in Japan and 94 kg in Greece.
That low figure represents huge potential for Kagome essence here, he said.
Kagome essence produced by an original equipment manufacturer in Thailand was introduced to the Thai market last month and has received a good response.
The market for concentrated beverages in Thailand is worth about 18 billion baht and had nearly 20% growth last year.
The tomato juice market is valued at 120 million baht, with big growth of 61% last year.
Mr Nishi said more than 1,000 tomato products are in Kagome's portfolio.
Next year, it will introduce new tomato products to the Thai market and allocate 100 million baht to promote all products.
Osotspa Kagome expects revenue of 120 million baht in its first year of operation.
The company also plans to explore market opportunities in Myanmar, Laos, Cambodia and Vietnam.
Products will be exported from Thailand but will be different depending on market demand in each country.
It will use Osotspa's Asean distribution network.
Kagome tomato products are available in many countries including the US, Italy, Taiwan, Australia, China and India.
Global sales of Kagome products reached US$2 billion last year.