Thai Union Online Shop Co, the distributor of Qfresh frozen seafood products under Thai Union Group Plc, is closely monitoring reports regarding Japan's release of treated radioactive water from the country's damaged Fukushima power plant into the Pacific Ocean, 12 years after the nuclear plant's meltdown.
The company looks set to switch to alternative sourcing for specific seafood products should an elevated risk be identified, according to Thanachote Boonmechote, managing director of Thai Union Online Shop.
Nevertheless, Mr Thanachote insisted that the recent release of the treated water into the ocean had not adversely affected the company's seafood operations.
He said that as of now, clients' purchase orders remain intact, given that the frozen seafood delivered to them was sourced prior to the release of the radioactive water. The inventory of this particular seafood production batch is sufficient to cater to their clients' needs until the end of this year, he said.
"Our presently available frozen seafood products in the market are safe. Nevertheless, we will remain vigilant in monitoring the situation and are prepared to shift to alternative sources should the risk escalate and our current inventory be depleted," said Mr Thanachote.
Currently, 30% of the frozen seafood products are imported from Japan. The primary items in this category are Hokkaido scallops (Hotate) and Hamaji fish sashimi grade. The remaining frozen seafood comes from diverse sources including the US, Canada, Japan and China.
According to Mr Thanachote, the company has been trying to diversify its product line-up beyond frozen shrimp to mitigate business risks and provide clients with a one-stop shopping service. At present, shrimp-based frozen seafood accounts for 42% of its product portfolio, while the remaining 58% is made up of other offerings such as seabass, seaweed and scallops, among others.
Mr Thanachote said the ready-to-cook and ready-to-eat seafood segment in Thailand has experienced consistent growth due to consumers embracing frozen seafood for its quality, taste and convenience.
Excluding products available at Makro and 7-Eleven stores, the frozen seafood market reached 2 billion baht in 2022, marking a 4-5% increase from 2021. Deep-fried seafood witnessed a 10.2% growth, whereas raw seafood materials and other categories experienced declines of 12.6% and 7.7%, respectively, primarily due to a shift towards dining out.
With the ongoing expansion of the deep-fried product category, the firm has introduced four new Qfresh breaded shrimp items as part of their ready-to-cook and ready-to-eat seafood range. These products are aimed at capturing the interest of younger consumers and are expected to be a significant growth driver in 2024.
To enhance their connection with the target audience, the firm has enlisted Thiti "Bank" Mahayotaruk as its brand ambassador for the new Qfresh breaded shrimp line. Bank Thiti is also featured in the new Qfresh "Magician Man" commercial, set to be aired on digital platforms and out-of-home media, including Major Cineplex and Blu-O Rhythm & Bowl branches.