Sugar maker Wangkanai seeks to grow organically

Sugar maker Wangkanai seeks to grow organically

Wangkanai Sugar Group has increased its organic sugar capacity as part of a greater focus on the organic segment domestically and overseas.

Tanyaruk: Expanding the customer base

With a total capacity of 700,000 tonnes a year, Wangkanai now produces 9,000-10,000 tonnes of organic sugar a year, up from 2,000-3,000 tonnes four years ago.

Of the current production, 3,000 tonnes is sold domestically through modern trade channels and 7,000 tonnes is exported, mainly to Europe.

The company plans to further increase its organic sugar production capacity, said public relations director Tanyaruk Na Wangkanai.

Wangkanai's plantation area spans 650,000 rai, of which 15,000 rai is for organic sugar. The company expects organic sugar to make up 30% of plantation area within the next three years and reach 50% of all production within a decade.

"We hope to have a sufficient volume of organic sugar at lower production cost, so today we are ready to expand our customer base for organic sugar to the mass market," Ms Tanyaruk said.

Organic sugar generates 7% of the company's revenue at a price of 65 baht for a half-kilogramme package.

"90% of sugar consumers still choose lower-priced sugar," said sales director Grissana Chungsiriwat, "as the price of white sugar in the market stands between 22.50 and 35 baht."

To draw consumers to its organic sugar, Wangkanai will cut the price of a half-kg package to 25 baht next month. It will also introduce a one-kg package for 42 baht.

The two sizes will have new packaging featuring the smiling faces of sugar-cane farmers to stress the benefits of organic production.

"This is our marketing plan for 2014, to focus on strengthening our brand image of 'not all sugar is the same' through new packaging designs," Ms Tanyaruk said.

Beyond that, the company is not stressing marketing promotions. The marketing budget two years ago stood at 1 million baht; this year's is half that.

"Now we are ready to present the new way of sugar consumption, and waiting for the reaction from customers who are more conscious of their health than the price," Mr Grissana said.

"We are confident that the reduced prices of organic sugar will receive a warm welcome from consumers and let all target groups enjoy the consumption of chemical-free products at an affordable cost."

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