The Charoen Pokphand Group is seeking to partner with two foreign suppliers as part of its ambitious plan to tap into the US market

Wednesday August 29, 2007
Charoen Pokphand to tap the US market
PHUSADEE ARUNMAS

The Charoen Pokphand Group, Thailand's largest agriculture-based
conglomerate, is seeking to partner with two foreign suppliers as part
of its ambitious plan to tap into the US market. According to
executive vice-president Sarasin Viraphol, the group is negotiating
with Japanese suppliers of Ito-Yokado Co, one of Japan's leading
retailers, to jointly develop food supplies for 7-Eleven convenience
stores in the United States.


Formerly a holding company for businesses that included banks,
convenience stores, and restaurants, Ito-Yokado is now a subsidiary
and the core operating company of Japan's largest retail conglomerate,
Seven & I Holdings, which owns the 7-Eleven chain.


According to Mr Sarasin, CP is also negotiating with an unnamed US
sauce producer to expand its food sales in the US market.


CP is preparing to invest at least 300 million baht this year in its
local units, executives of its various divisions said at a briefing


Sukhawat Dansermsuk, president of Global Kitchen Co Ltd, the local
operator of the Chester's Grill restaurant chain, said the company
would invest 200 million baht to expand its chain to 150 outlets this
year from existing the current 135. Chester's Grill is expected to
generate sales of 1.5 billion baht, up from 1.2 billion in 2006.


Although Chester's does not have concrete plans to expand outside of
Thailand, there has been heavy interest from foreign investors
particularly from India, Vietnam and Cambodia, who want to invest in
company franchises, said Mr Sukhawat.


According to Mr Sukhawat, also in his capacity as president of
International Pet Food Co, the manufacturer and distributor of JerHigh
pet food, the company is preparing to invest 120 million baht to
triple the production capacity of its Saraburi plant to 300 tonnes per
month next year.


The pet food business is expected to grow to 200 million baht this
year, a rise of 10-15%. Boosted by positive growth of its pet food
business, the company also plans this month to add chicken essence
beverages for pets.


Paisal Chongbanyatcharoen, the president of the dairy affiliate CP-
Meiji Co, said the company planned to invest 20 million baht to set up
a factory in Saraburi province to produce premium yoghurt.The higher-
priced premium yoghurt products are expected to hit the market by
mid-2008 and would cater mainly to health-conscious consumers.


CP-Meiji expects sales to top three billion baht this year, up to two
billion baht of which would be from pasteurised milk, 300 million baht
from exports and the remainder from drinking yoghurt and soft
yoghurt.


Mr Sukhawat said CP's sausage business, which operates under four
brands including CP, Mister Sausage, and the CP-Yonekyu was also in
good shape despite Thailand's economic difficulties. It expects sales
to grow by 10% this year.

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