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EN_Tipco_Annual Report 2014

ANNUAL REPORT 2014 Agro-Industrial Business TIPCO Food PCL. Revenues from canned pineapple and concentrate export decreased due to raw material (i.e., fresh pineapple) shortage resulting from the decline in cul-tivation area and drought conditions which triggered steady increase in the domestic price of fresh pineapples throughout the year. As other producing countries did not face higher raw material costs, TIPCO could not adjust FOB prices to fully absorb higher input costs. Last but not least, global and EU economies remained in doldrums despite signs of US recovery while political conflicts in many parts of the world continued to restrain global purchasing power, resulting in lower sales revenues from the Food Business as a whole. TIPCO Biotech Co., Ltd. Brisk revenue growth from sale of fresh fruit in 2014 underscored high market demand for the superior taste and quality of the Homsuwan pineapple strain. As market demand could absorb any amount of output increase, the com-pany was able to expand distribution outlets to include leading supermarkets and distribution agents. Total sales revenues in 2014 increased by 50 percent along with higher gross profit margin as the company was able to adjust the selling price to reflect high product quality and positive consumer response. In 2014, the Plant Extract Business recorded an increase in revenues and profit as the company’s technology was able to produce plant extract to meet customer demand in Japan while prices could be revised upward to yield higher gross profit margin. Consumer Business 1. TIPCO F&B Co., Ltd. Although political conditions affected ready-to-drink business resulting in minimal increase in sales revenues, TIPCO’s sales growth continued to exceed industry average, particularly with in the 100% fruit juice market wherein the company maintained market leadership. At the same time new product de-velopment and on-going focus on creating customer awareness and clearer understanding of TIPCo’s product differentiation helped to further enhance consumer satisfaction with TIPCO brand products. The following product in-novations were launched in 2014. Mixed vegetable and fruit juice under the brand TIPCO Profiber which comes in 2 sizes, namely, 300 ml PET bottle and 1 liter carton. Share, and 2 flavors – Green Apple and Cherry Sherbet. In the category of 100% fruit juice for children, TIPCO’s Superkid brand launched a new flavor, i.e., berry mixed. Newly launched products were well received. Profiber’s unique effectiveness in improving bowel movements helped to expand TIPCO’s market share in mixed vegetable and fruit juice. The company’s successful application of Dis-ney cartoon to educate children at school and entice kids to taste the new product at various points of sales also contributed to higher sales growth. Substantial increase in overseas sales of ready-to-drink beverages was at-


EN_Tipco_Annual Report 2014
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