SET-listed Thai Union Group, a global seafood company, yesterday announced a 10% strategic investment, valued at about 3 billion baht, in R&B Food Supply Plc (RBF), Thailand's leading food ingredients company specialising in flavours, colours and coatings.
This investment follows a multi-year relationship between Thai Union and RBF, in which RBF has been supplying food ingredients for use in Thai Union's products.
The companies said the strategic partnership is expected to help drive and accelerate business growth opportunities in the adjacent food ingredients industry, particularly to serve the increasing sophistication of Asean consumers.
RBF said its innovative ingredients, such as natural flavours and hemp extracts, can enhance both Thai Union's core offerings and newer products, including alternative protein and pet care.
For RBF, the partnership will enhance its ability to integrate vertically into Thai Union's supply chain, and leverage Thai Union's global footprint for its own international expansion.
With a shared vision for innovative food solutions, both companies said they would leverage their respective capabilities to generate additional value for customers and stakeholders.
"One of Thai Union's strategic priorities is to expand our portfolio into new, growing and higher-margin areas, and this investment is fully aligned with that," said Thiraphong Chansiri, chief executive of Thai Union.
"For over three decades, RBF has stood out as a leading ingredients supplier to the food and beverage industry in Thailand, and we are excited to be a part of their journey."
Somchai Ratanapoompinyo, chief executive of RBF, said the partnership was seen as helping leverage and strengthen both firms' competitive advantages.
He said RBF's expertise and 35 years of experience in the food ingredients business will enhance Thai Union's product offerings.
In return, Thai Union's global presence and reputation will help unlock RBF's potential and accelerate the firm's transition from a regional to a global player in the food ingredients business, said Mr Somchai.