KJ World Foods Co Ltd, the manufacturer and distributor of packaged rice under the Kaijae brand, expects its sales to increase to 3 billion baht amid fierce competition by emphasising quality products.
Teerin Tanyawattanakul, managing director of KJ World Foods, said he is the second generation leader of the company after obtaining a post-graduate degree from the US two decades ago, continuing the family business from his father, who started the production and sales of packaged rice in Chon Buri province.
CREATING A NEST EGG
Inspired by his father's love of raising chickens, the company produced and sold packaged rice in Chon Buri under the Kaijae Rice brand for more than 60 years.
The company previously had a small plant that sold in only three districts in Chon Buri province, but has expanded to offer nationwide sales at present.
Mr Teerin said KJ World Foods was determined to become a leading exporter of high-quality Thai rice to the world market, opening a new facility in 2012 fully equipped with modern machinery and a production capacity of 300,000 tonnes per year.
The company purchases rice from rice mills that are business partners, mostly in the northeastern and northern regions, he said.
The rice trade is highly competitive in Thailand, but the competition is free and fair, said Mr Teerin.
The long-term key to KJ World Foods's success is making quality products, which allows the company to survive amid high price volatility, he said.
PRICE MATTERS
To best supervise the business, it is important to manage stocks and monitor market prices because pricing is an important determinant for consumers, said Mr Teerin.
In the beginning of the year, the price of packaged rice bags increased by 5-10%, but not all product lines increased.
Instead of raising its prices, the company opted to use promotion strategies to deal with increasing costs, which reduced the impact on consumers, he said.
"Price has a significant effect on consumer behaviour, but they also value quality, which is the company's priority," said Mr Teerin.
"Our main market is still within the country, tallying 70%, with the remainder exports to 40-50 countries. Last year the company posted revenue of 2.5 billion baht and we expect to reach 3 billion this year as the economy is recovering compared with 2023."
PRODUCTION STANDARDS
Using modern production technology, all stages of rice production are carefully inspected by specialists, following international standards to ensure all bags meet certified quality standards.
KJ World Foods offers more than 400 products, including 200 rice items such as Thai hom mali (jasmine) rice, glutinous rice, and Japanese sushi rice.
The company provides direct delivery service to restaurants.
Distribution to modern trade outlets includes department stores, supermarkets and convenience stores across the country.
Apart from the Kaijae brand, the company also manufactures packaged rice in bags ranging from 200 grammes to 48 kilogrammes under the Krachao brand, and sweets under the Mae Napa brand including sticky rice with purple potato, sun-dried banana and vermicelli.
Despite the impact of climate change on production and raw material costs, KJ World Foods is confident sales will meet the company's target because of a promotional campaign and omni-distribution channels, helping the brands gain broad market acceptance, he said.
