SET-listed beverage company Sappe Plc, the manufacturer of drinks under the Sappe brand, plans to spend 1 billion baht during 2022-2026 to expand its beverage production capacity as part of the company's efforts to triple its sales to 10 billion baht.
Piyajit Ruckariyapong, Sappe chief executive, said the firm is conducting a feasibility study to expand its beverage production capacity to support the future growth of the company's business in domestic and international markets.
Of the total investment of 1 billion baht, 600-650 million baht will be used to set up a new production line at the firm's factory in Pathum Thani, while the remaining 350-400 million baht is slated for a new warehouse.
The investment excludes the company's annual capital expenditure of 100 million baht.
Sappe currently has a total production capacity of 140,000 tonnes per year. Further details about its production capacity expansion plans have yet to be disclosed.
According to Ms Piyajit, for overseas operations the company aims to forge joint ventures with foreign partners to expand into new business categories, new distribution channels and innovations.
Ms Piyajit said Sappe plans to increase its sales to 10 billion baht by 2026 through essential business strategies including domestic and international expansion, mergers and acquisitions (M&A), and an aggressive business expansion of its All Coco drink brand.
In terms of international business, Sappe has an average growth target of 15-20%, mainly through the expansion of sales distribution channels to be more comprehensive and cover more areas.
"Our business internationally went well in Europe, Asia, the Middle East and the Americas, but the countries where we have posted exceptional growth were South Korea, France, the Philippines and Indonesia,'' Ms Piyajit said.
Sappe's products are currently exported to 98 countries worldwide. Exports in 2021 accounted for 65% of total revenue and the firm aims to increase this to 70% in 2026.
According to Ms Piyajit, the company is in talks with 2-3 companies for M&A as part of its attempt to increase its new product categories, new sales channels, and innovations.
The company aims to increase sales of its All Coco drink brand to 800 million baht in 2026, from 316 million baht last year. It will open new All Coco cafés in Bali, Indonesia, and increase sales points worldwide.
In the domestic market, Ms Piyajit said the company would this year focus on launching new products, leveraging existing brands to new product categories, expanding e-commerce, and collaborating with partners to grow its domestic sales by 10%.