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Published by: Business Monitor International
Published: May. 1, 2008 - 78 Pages
Table of Contents
- Executive Summary
- Business Environment
- Regional Food & Drink Business Environment Ratings
- Table: Asia Pacific Food & Drink Ratings - Q208
- Thailand’s Food and Drink Business Environment Rating
- Table: Thailand’s Global Business Environment Ratings Peer Group
- SWOT Analysis
- Mass Grocery Retail
- Thailand Mass Grocery Retail Industry SWOT
- Food And Drink
- Thailand Food And Drink Industry SWOT
- Macroeconomic Outlook
- Table: Economic Activity
- Retail
- Industry Forecast Scenario
- Table: Thailand MGR Sales Value By Format (US$bn) - Historical Data & Forecasts
- Table: Grocery Retail Sales By Format - Historical Data & Forecasts
- Industry Developments
- Market Overview
- Table: Structure Of Thailand’s Mass Grocery Retail Market By Estimated Number Of Outlets
- Table: Structure Of Thailand’s Mass Grocery Retail Market, Sales Value By Format (US$bn)
- Table: Average Sales Per Outlet By Format (US$mn)
- Food And Drink
- Regional Overview: Confectionery in the Asia Pacific region
- Table: Leading Global Chocolate Manufacturers
- Table: Leading Confectionery Companies In The Asia Pacific Region
- Industry Forecast Scenario
- Food
- Table: Food Consumption Indicators - Historical Data & Forecasts
- Table: Food Category Sales Indicators - Historical Data & Forecasts
- Table: Food, Drink & Tobacco Sectoral Trade Indicators (US$mn) - Historical Data & Forecasts
- Drink
- Table: Thailand Beverage Sub-Sectors - Value Sales Historical Data & Forecasts
- Industry Developments
- Food
- Drink
- Market Overview
- Agriculture
- Table: Thailand Agricultural Sub-Sector Production Data (‘000 tonnes)
- Table: Thailand Dairy Industry Data (‘000 tonnes)
- Table: Thailand Organic Agricultural Data
- Food
- Drink
- Tobacco
- Industry Forecast Scenario
- Table: Cigarette Value/Volume Sales - Historical Data & Forecasts
- Industry Developments
- Market Overview
- Competitive Landscape
- Key Players
- Mass Grocery Retail
- Key Players In Thailand’s Mass Grocery Retail Sector, 2
- Food and Drink
- Key Players in Thailand's Food & Drink Sector, 2007
- Regional Company Case Studies
- Food: Unilever In The Asia Pacific Region
- Table: Per Capita Food Consumption In Selected Asia Pacific Markets (US$)
- Drink: San Miguel Corporation In The Asia Pacific Region
- Table: San Miguel Corporation In The Asia Pacific Region
- Table: San Miguel Corporation Revenue And Earnings Growth By Operating Division, Q107 (%)
- Table: San Miguel Corporation - Sales By Market (US$mn)
- Table: San Miguel Corporation - Key Historical Data
- Company Analysis
- Mass Grocery Retail
- CP All Ltd
- Carrefour
- Siam FamilyMart
- Tesco Lotus
- Central Food Retail Company Ltd (CFR)
- Food
- Chokchai
- Charoen Pokphand Foods (CPF)
- Thai President Foods
- Thai Advanced Food (TAF)
- Drink
- Thai Beverages Plc (ThaiBev)
- Thai Asia Pacific Brewery (Thai APB)
- Singha Corporation
- Tobacco
- Thailand Tobacco Monopoly (TTM)
- Food & Drink Ratings Appendix
- Introduction: Revised Methodology
- Ratings Overview
- Ratings System
- Indicators
- Table: Limits Of Potential Returns
- Table: Risks To Realisation Of Returns
- Weighting
- Table: Weighting
- BMI Forecast Modelling
- How We Generate Our Industry Forecasts
- Retail Industry
- Sources
AbstractThailand represents one of the most attractive food and drink markets in the Asia Pacific region. Thecountry, ranked joint fourth alongside a more mature, but also more challenging Japanese market, offers anumber of opportunities to foreign players. However, the new government is likely to continue tolegislate against easy mass grocery retail (MGR) expansion in a bid to protect the independent sector,although the investor confidence has been boosted by the election of the new administration. Thegovernment is expecting private investment to grow by 5-6% in the course of the current year, dwarfingthe 0.5% figure achieved in 2007.
To this end, French Carrefour’s Thai operations announced a THB3bn (US$92.3mn) investment, whichis to be used to open six or seven more hypermarkets in the country. The company quoted its confidencein the new government as the key reason for the tripled investment budget, with its local operationCenCar also planning a US$7.3mn investment in the renovation of its 24 stores into ‘premiumhypermarkets’ and the addition of beauty products and other non-food items. Moreover, CenCar hassigned a memorandum of understanding with the Commerce Ministry to export local products thoughCarrefour’s global network, with a view to regaining some of the shares taken by the Philippines,Vietnam and Indonesia in recent years, due to high prices of Thai exports. UK-based Tesco is pursuing asimilar strategy though its Tesco Lotus local subsidiary, which is to work with local fruit and vegetablegrowers with a view to exporting THB1.6bn (US$49.5mn)-worth of produce to its international markets.However, local fruit and vegetable growers are increasingly finding themselves with surplus stock, withthis oversupply resulting in falling prices and decreased revenues for the growing agricultural sector. Partof the problem is the quality of Thai produce, which is considered inadequate for European and the USmarkets, although the industry and the government are working on rectifying the situation.
Nevertheless, both MGR and food and drink industries continue to show a fair amount of dynamism. Anoverwhelming trend is that of investment in expansion of production and penetration of the local market.To this end, in March 2008, leading spirits and beer producer Thai Beverage (ThaiBev) revealed itsintention to tap the opportunities within the non-alcoholic beverages sector by using its extensive existingdistribution network across the country. The company is planning to boost its product portfolio withenergy drinks and coffee brands as part of its diversification strategy and in response to the high percapita consumption of energy drinks in particular. Similarly, in February 2008, Thai agro-industrial groupChokchai announced plans to invest THB100mn (US$3.18mn) in turning its existing dairy productionfacility into a fully integrated dairy farm. The move will allow the company to boost dairy sales and lowercosts, with the strategy also supported by the expansion of its increasingly popular premium fast-foodbusiness, which is already a target of other companies in the country.
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