PFG diversifies into non-canned foods
published : 4 May 2023 at 06:03
newspaper section: Business
writer: Pitsinee Jitpleecheep
Pataya Food Group (PFG), the producer of Nautilus canned seafood, has diversified into non-canned foods such as fruit and vegetables in an effort to balance risk and sustain long-term growth.
According to chief executive Wichai Karanapakorn, the company established the Mont Shamau organic farm on a 70-rai plot in Rayong province where it has planted a variety of fruit including durian and mangosteen as well as salad vegetables which it has been supplying to restaurants, hotels and supermarkets locally, mainly through business-to-business (B2B) channels, for several years.
Following the successful B2B sales, PFG now sells its fruit and vegetables at outlets of Gourmet Market in Bangkok.
PFG also opened "Mont Shamau" health food grab & go outlets at the Siam Scape building opposite MBK mall and at Terminal 21 by the Asok intersection.
The firm plans to open a third Mont Shamau grab & go branch in Bangkok this year.
"Mont Shamau has received a warm response from health-conscious customers," said Mr Wichai.
In addition to its organic farming of vegetables and fruit, the company has expanded into organic chicken breeding. Mr Wichai expects the company's organic eggs to be available at supermarket chains soon.
"After more than four decades of doing business in Thailand, we have faced various obstacles, such as fluctuations in the economy, changes in the competitive environment, and the pandemic," said Mr Wichai.
"The canned seafood market is very competitive, and the availability and prices of raw materials, such as tuna, are uncertain. We must diversify our business into non-canned food, which provides good profits, balances risk and attracts new customer groups."
PFG has operating in the country now for 44 years.
The company owns extensive businesses ranging from canned seafood to health food, snacks, pet food, fruit and vegetables as well as chicken farming. Food for human consumption accounts for 75% of the company's production, with pet food for original equipment manufacturer (OEM) brands and its own brands accounting for 25% of its output.
The company plans to invest 500 million baht this year to support its future growth, he said.
Of the total, 200 million baht would be used to improve the facilities at PFG's factory in Samut Sakhon, while the other 300 million would be used to expand its production capacity, R&D and new product development, said Mr Wichai.
The firm plans to team up with partners to co-develop new products, aiming to launch at the Thaifex-Anuge Asia event to be held on May 23 at Muang Thong Thani.
The firm changed the packaging of its Nautilus tuna spread with crackers from plastic to paper to be more environmentally friendly.
Sales of PFG tallied 8.2 billion baht in 2022 and the firm expects to grow its sales by 8% to 8.85 billion this year.
Of the firm's total sales in 2022, tuna products accounted for 32%, pet food products 25%, mackerel products 18%, salmon products 14%, with the remaining 11% other products.
- Pataya Food Group