PAGE 036 / 037 TIPCO FOODS PUBLIC COMPANY LIMITED INDUSTRY TRENDS AND COMPETITION Agro-industrial Business TIPCO Foods. PCL. In 2014 Thailand’s canned pineapple export totaled Baht 16,052million, lower than the previous year by about Baht 940 million, due partly to lower fresh pineapple output estimated at 1.9million tons. Raw ma-terial shortage is expected to recur in 2015 due to drought conditions. As total fresh pineapple production will be close to the previous year’s level, raw material costs will remain relatively high but selling prices may be adjusted to absorb higher costs, assuming that markets and selling prices in Asia, the Middle East and Thailand continue to enjoy stable growth while market demand in the USA and Europe show signs of recovery. TIPCO Foods PCL. Continues to focus on maintaining markets wherein it has built up strong customer base, trade partnerships and long-standing business alliances. At the same time, the company will expand markets in Asia, the Middle East, and the domestic front, where consumption demand and prices remain buoyant. New products in the category of canned fruit, fruits in plastic cup and various other forms of products processed from tropical fruits such as coconut, papaya, mango, Aloe Vera, will also be developed to expand sales opportunity and turnover in line with management objectives. TIPCO Biotech Co., Ltd. As consumer preferences place higher priority on health benefits and beauty factor, the domestic market for healthcare products and services and cosmetics have expanded rapidly in the past few years, opening up new opportunities for TIPCO Biotech Co., Ltd. to achieve high sales growth in the market segment for various kinds of plant extracts and herbs which are used as raw materials for domestic production of food items, beverages, food supplement, cosmetics and medicine. The company also aims to foster alliances and trade partnerships with overseas producers who require raw materials extracted from plants and herbs which only grow in specific areas or have a competitive edge in terms of lower produc-tion cost. Consumer Business TIPCO F&B Co., Ltd. In2014, the market for 100% fruit juice is projected to grow by approximately 4% per annum, mineral water 10%, bottled tea no change, subject to variable impact from domestic factors, particularly local politics. Al-though the market for ready-to-drink beverages remain highly competitive, TIPCO F&B Co., Ltd. should be able to maintain market leadership in the 100% fruit juice segment by creating brand value based on highly selective raw ma-terial quality and production processes that directly benefit the consumer’s health. New product development and launching will aim at expanding customer base and securing target customers. The company has also taken steps to expand customer base for fruit and vegetable juice in various Asian countries, namely, South Korea, Indonesia and the Philippines. Last year the company also expanded production capacity and the marketing campaign for Aura mineral water to accommodate higher market demand. Aura mineral water is drawn directly from a natural cold spring located in one of Thailand’s best preserved natural environments. In 2014, the company maintained marketing activities for bottled Oolong Tea OTPP under the brand name Suntory Tea Plus which emphasizes health ben-efit, unique taste, and the refreshing quality of tea.
EN_Tipco_Annual Report 2014
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