Tipco seeks place among top-3 brands
SET-listed Tipco Foods Plc, a maker of fruit juice, plans to enter the top-three premium juice brands in Asia over the next 3-5 years.
Nuttanun Luangsangthong, head of export business for drinks at Tipco F&B Co, a subsidiary of Tipco Foods, said the overseas expansion of the premium juice business will continue because of huge market opportunities.
The popularity of Asian fruit juices and Thai brands in particular is rising in the West because Asian brands offer unfamiliar products and tastes. Furthermore, Asians have migrated to other countries, creating new markets.
Ekapol Pongatabhon, managing director of Tipco Foods, said its premium fruit juice is exported to 30 countries, including those in northern Asia and the Middle East and will be shipped to Oceania in the next two months.
The company's premium fruit juice sales last year stood at 3 billion baht, with exports accounting for 18%, a proportion which is expected to rise to 25% over the next 3-5 years. Its overseas business sees 15% growth a year.
"We aim to become the third-largest premium fruit juice brand in 10 strategic markets such as Indonesia, the Philippines, Hong Kong, Singapore, China, Australia and New Zealand within the next 3-5 years," Ms Nuttanun said.
Tipco is among the top-three premium fruit juice brands in South Korea along with Del Monte and Dole, controlling a 40% market share.
To strengthen its business in South Korea, the company started offering its premium fruit juice brand online early this year via the network of Coupang, one of the largest online shopping sites in the country.
Del Monte has distributed Tipco juice in the Philippines for three years. Tipco has a 30% share of the Philippines market. Its fruit juice has been available at local 7-Eleven stores since early this year.
In addition, Tipco will start advertising its fruit juice products at Tsim Sha Tsui metro station in Hong Kong next month. Its fruit juice will soon be sold at Welcome supermarkets in the territory.
The company will launch new fruit juice products in each country and find new channels to distribute them. Its products will be available at Asian grocery stores in New Zealand in the next two months.
TIPCO shares closed yesterday on the Stock Exchange of Thailand at 16.20 baht, down 20 satang, in trade worth 98.3 million baht.