- New initiative offers Thai fans a trip to AVATAR special effects studio in New Zealand or free admission to 3-D IMAX screening from today until 31 December
- Limited-edition cans of Coca-Cola Zero A
VATAR available for keeps
Coca-Cola Zero – a beverage that gives the real taste of Coca-Cola with zero sugar from the Coca-Cola System in Thailand – today announced a partnership between Coca-Cola Zero Black Carpet and AVATAR, this year’s ultimate blockbuster epic film which took 14 years in the making by director
James Cameron of the ‘Titanic’ and ‘Terminator’ fame recognized for his innovative and creative cinematic adventures to entertain his audiences.
The AVATAR epic adventure features new special effects, computer-generated imagery (CGI), 3D and sophisticated film-making technologies that will give audiences a spectacular and exciting viewing experience.
Ms. Chanisa Kaewruen, Marketing Director, Coca-Cola (Thailand) Limited, said, “As a leading partner in this promotional campaign, the Thailand team has organized fun activities for our fans to derive an exclusive and aesthetic experience from this exciting epic film, AVATAR which shares similar aspirations and unconventional values with our brand.”
She added that two initiatives under the Coca-Cola Zero Black Carpet entertainment platform will be implemented to engage Thai consumers who have eagerly looked forward to AVATAR’s nationwide screening on 17 December. Participants in these activities may win a trip to New Zealand to visit WETA Studio that created AVATAR special effects or join 200 lucky winners to watch AVATAR in 3-D IMAX format for free.
“These prizes are valued at over Bht 1 million. We are also airing the unique ‘Coca-Cola Zero AVATAR’ commercial on television and in cinemas along with the use of a comprehensive mix of media. Limited-edition cans of Coca-Cola Zero AVATAR will be made available for sale at hypermarkets, supermarkets, convenience stores, and leading retailers nationwide in the lead-up to the screening of AVATAR in Thailand.”, said Ms. Chanisa.
Enter to win a trip to New Zealand. Mail a Coca-Cola Zero bottle cap together with your name, address, phone number to P.O. Box 49 Phasicharoen, Bangkok 10160 or redeem 7 Coca-Cola Zero bottle caps for 7 coupons whereon to write your name, address, phone number before dropping them in an entry box at any Thai Ticket Major counter, now until 31 December 2009.
Tuesday, December 15, 2009
Saturday, November 21, 2009
Taste of Australia at MGallery International Buffet Dinner VIE Hotel Bangkok
Food devotees will have their pleasure heightened at VIE Hotel Bangkok’s MGallery International Buffet Dinner featuring Australian cuisine and the ‘wine flights’. Moreover, the customers will receive a privilege throughout the month of November 2009.
VIE WINE & GRILL of VIE Hotel Bangkok invites you to experience good food and fine beverage that have become part and parcel of contemporary multicultural Australia. At MGallery International Buffet Dinner will highlight a corner with a wide range of Australian savory. Special for November, the popular ‘wine flights’ provide the opportunity to taste exceptional selection of fine wine from Australia.
Moreover, the customers will receive a choice of privileges either a month complimentary membership at VIE FIT, special discount voucher at VIE SPA and 50 percent discount at Enigma, Paragon Major Cineplex.
MGallery International Buffet Dinner is priced at only Baht 750 Nett (food only) and Baht 1,095 Nett includes 1 set of Australian Wine Flights. Open from 18.30-22.00hrs. on every Thursday, Friday and Saturday at VIE WINE & GRILL, located on the 11th floor of VIE Hotel Bangkok.
VIE WINE & GRILL of VIE Hotel Bangkok invites you to experience good food and fine beverage that have become part and parcel of contemporary multicultural Australia. At MGallery International Buffet Dinner will highlight a corner with a wide range of Australian savory. Special for November, the popular ‘wine flights’ provide the opportunity to taste exceptional selection of fine wine from Australia.
Moreover, the customers will receive a choice of privileges either a month complimentary membership at VIE FIT, special discount voucher at VIE SPA and 50 percent discount at Enigma, Paragon Major Cineplex.
MGallery International Buffet Dinner is priced at only Baht 750 Nett (food only) and Baht 1,095 Nett includes 1 set of Australian Wine Flights. Open from 18.30-22.00hrs. on every Thursday, Friday and Saturday at VIE WINE & GRILL, located on the 11th floor of VIE Hotel Bangkok.
Friday, November 13, 2009
Coke bottlers invest B1.5bn
Thai Namthip and Haad Thip, the local Coca-Cola bottlers, plan to invest 1.5 billion baht in their manufacturing and distribution facilities next year.
The investment will also expand the companies' product lines and distribution fleets. Thai Namthip serves most local markets in 62 provinces and Haad Thip covers 14 southern provinces. Their products include Coca-Cola, Coca-Cola Zero, Coca-Cola Light, Fanta, Sprite,Schweppes, A&W Root Beer, Minute Maid Splash, Minute Maid Pulpy juices and Namthip water.
Pornwut Sarasin, vice-chairman of Thai Namthip, said the beverage industry could grow as Thai per-capita consumption was less than elsewhere in this region.Coca-Cola sales in other countries also regularly register 15-25% growth.
"We continue to lead the nonalcoholic sparkling beverage market in Thailand with a market share of almost 50%," he said.
Col Patchara Rattakul, chief operating officer of Haad Thip, said sales of its products were an important part of the incomes for 300,000 small retailers,100,000 food shops and modern-trade outlets.
"We believe that any investment in our business and growth in our sector can significantly contribute to grassroots income growth. It also supports growth in related industries, such as suppliers of ingredients and raw materials, since 99% of our raw materials are locally sourced," he added.
Despite a challenging two years for the industry, Coca-Cola is committed to Thailand.
"In particular, we are expanding our juice and beverages portfolio through new innovations such as our recently launched Minute Maid Pulpy, a naturally refreshing orange juice with real orange pulp," said Col Patchara.
In only six months, Pulpy has become the best-selling juice in hypermarkets,supermarkets and convenience stores.
The investment will also expand the companies' product lines and distribution fleets. Thai Namthip serves most local markets in 62 provinces and Haad Thip covers 14 southern provinces. Their products include Coca-Cola, Coca-Cola Zero, Coca-Cola Light, Fanta, Sprite,Schweppes, A&W Root Beer, Minute Maid Splash, Minute Maid Pulpy juices and Namthip water.
Pornwut Sarasin, vice-chairman of Thai Namthip, said the beverage industry could grow as Thai per-capita consumption was less than elsewhere in this region.Coca-Cola sales in other countries also regularly register 15-25% growth.
"We continue to lead the nonalcoholic sparkling beverage market in Thailand with a market share of almost 50%," he said.
Col Patchara Rattakul, chief operating officer of Haad Thip, said sales of its products were an important part of the incomes for 300,000 small retailers,100,000 food shops and modern-trade outlets.
"We believe that any investment in our business and growth in our sector can significantly contribute to grassroots income growth. It also supports growth in related industries, such as suppliers of ingredients and raw materials, since 99% of our raw materials are locally sourced," he added.
Despite a challenging two years for the industry, Coca-Cola is committed to Thailand.
"In particular, we are expanding our juice and beverages portfolio through new innovations such as our recently launched Minute Maid Pulpy, a naturally refreshing orange juice with real orange pulp," said Col Patchara.
In only six months, Pulpy has become the best-selling juice in hypermarkets,supermarkets and convenience stores.
Sunday, November 8, 2009
Khao Shong opens first cafe
Khao Shong Industry 1979 Co, the maker of Khao Shong coffee, will open its first outlet in December after suspending the plan for two years.
The firm will spend 2 million baht to open its first Khao Shong coffee outlet on Rama IX Road as a showcase for investors interested in franchises.
The company is in the process of developing new coffee products to widen its customer base.
It wants to be ready to cope with increased competition in the local industry after the Asean Free Trade Area takes effect next year.
Under Afta, the 5% import tariff on instant coffee will be eliminated. This will attract a number of new instant coffee and ready-to-drink canned coffee brands into the Thai market.
Managing director Chana Chiralerspong said the company was confident it could meet the challenge with more marketing activities to be launched in the future.
In the past few months, the company has appointed sales agents to distribute its products upcountry, and refreshed its brand image with more modern packaging and a new logo.
"With our 50 years of experience in Thailand's coffee industry, we are confident we can survive in the market in the long term,"he said.
The firm this week hired "Bie The Star", or Sukrit Wisetkaew, as the brand ambassador for Khao Shong 3-in-1 coffee.
"Bie The Star will help communicate and link our 3-in-1 coffee to younger customer groups faster than in the past,"Mr Chana said.
Thailand's total coffee market is estimated to be worth 20 billion baht, with 3-in-1 coffee making up 8.4 billion baht and the remainder ready-to-drink canned coffee and instant coffee. The market is estimated to grow by 10-15% per year,but with 20% growth for 3-in-1 coffee.
The firm will spend 2 million baht to open its first Khao Shong coffee outlet on Rama IX Road as a showcase for investors interested in franchises.
The company is in the process of developing new coffee products to widen its customer base.
It wants to be ready to cope with increased competition in the local industry after the Asean Free Trade Area takes effect next year.
Under Afta, the 5% import tariff on instant coffee will be eliminated. This will attract a number of new instant coffee and ready-to-drink canned coffee brands into the Thai market.
Managing director Chana Chiralerspong said the company was confident it could meet the challenge with more marketing activities to be launched in the future.
In the past few months, the company has appointed sales agents to distribute its products upcountry, and refreshed its brand image with more modern packaging and a new logo.
"With our 50 years of experience in Thailand's coffee industry, we are confident we can survive in the market in the long term,"he said.
The firm this week hired "Bie The Star", or Sukrit Wisetkaew, as the brand ambassador for Khao Shong 3-in-1 coffee.
"Bie The Star will help communicate and link our 3-in-1 coffee to younger customer groups faster than in the past,"Mr Chana said.
Thailand's total coffee market is estimated to be worth 20 billion baht, with 3-in-1 coffee making up 8.4 billion baht and the remainder ready-to-drink canned coffee and instant coffee. The market is estimated to grow by 10-15% per year,but with 20% growth for 3-in-1 coffee.
Tuesday, October 20, 2009
HUMAN RIGHTS AND THE BATTLE OVER JUNK FOOD
To what extent should a govt interfere in the eating habits of people, even unhealthy ones? The pop beverage and junk food war is simmering in the US as America is caught in the debate on freedom to consume versus responsible eating. Schools are cutting back on campus access to fatty, salty snacks and soft drinks, according to a report released by the US Federal Centre for Disease Control and Prevention early this month. And more measures are being introduced.
USA Today quoted the report on October 6 as saying the states of Mississippi and Tennessee have made the greatest strides. "In Mississippi, the percentage of secondary schools that didn't sell soda or sugary fruit drinks rose from 22 per cent in 2006 to 75 per cent in 2008; in Tennessee, it rose from 27 per cent to 74 per cent".
In New York, billionaire mayor Michael Bloomberg is forcing chain restaurants to post calorie counts. "[Bloomberg's] food issue has become New York City's. Although he has described his battle against unhealthy foods as common-sense public policy that will shed pounds (and save lives), many of his targets overlap with his own cravings," the New York Times said last month, followed by Bloomberg's admission that he likes Big Macs, "like everybody else".
At the national level, President Barack Obama is still toying with the idea of taxing calorie-rich soft drink giants to partly fund his healthcare reform.
The junk food/drink industries are fighting back, however. Coca-Cola ran an advertisement in the New York Times insisting that it's cooperating with schools worried about obesity and will even make the calorie level marking more noticeable for consumers.
A fast food advocate calling itself the Centre for Consumer Freedom also ran a full-page ad in The Times earlier this month, claiming that the government views Americans as being "too stupid … to make good personal decisions about foods and beverages".
It attacks Bloomberg for using tax dollars to launch an advertising campaign "to demonise soda".
In a classic debate between right and responsibility, the ad asks: "Food cops and politicians are attacking food and soda choices they don't like. Have they gone too far? It's your food. It's your drink. It's your freedom".
Increasingly, the junk food/drink industry is feeling as if it's being treated more like a pariah - like the tobacco industry with more and more restrictions being thrown up.
America is unique in the sense that one-third of its population is obese and roughly half is overweight.
While people ought to be able to decide, the American public should bear in mind not just the weighty power of the state but also that of the fast food giants. Having the government unilaterally decide everything cannot be politically healthy in the long run. At the same time, unrestricted, harmful for-profit activities should be reigned in.
Youths deserve special attention and protection, however. And how events unfold in the United States may set a precedent for many other parts of the world as the export of American junk food culture has pervaded nations near and far - even those once remote.
USA Today quoted the report on October 6 as saying the states of Mississippi and Tennessee have made the greatest strides. "In Mississippi, the percentage of secondary schools that didn't sell soda or sugary fruit drinks rose from 22 per cent in 2006 to 75 per cent in 2008; in Tennessee, it rose from 27 per cent to 74 per cent".
In New York, billionaire mayor Michael Bloomberg is forcing chain restaurants to post calorie counts. "[Bloomberg's] food issue has become New York City's. Although he has described his battle against unhealthy foods as common-sense public policy that will shed pounds (and save lives), many of his targets overlap with his own cravings," the New York Times said last month, followed by Bloomberg's admission that he likes Big Macs, "like everybody else".
At the national level, President Barack Obama is still toying with the idea of taxing calorie-rich soft drink giants to partly fund his healthcare reform.
The junk food/drink industries are fighting back, however. Coca-Cola ran an advertisement in the New York Times insisting that it's cooperating with schools worried about obesity and will even make the calorie level marking more noticeable for consumers.
A fast food advocate calling itself the Centre for Consumer Freedom also ran a full-page ad in The Times earlier this month, claiming that the government views Americans as being "too stupid … to make good personal decisions about foods and beverages".
It attacks Bloomberg for using tax dollars to launch an advertising campaign "to demonise soda".
In a classic debate between right and responsibility, the ad asks: "Food cops and politicians are attacking food and soda choices they don't like. Have they gone too far? It's your food. It's your drink. It's your freedom".
Increasingly, the junk food/drink industry is feeling as if it's being treated more like a pariah - like the tobacco industry with more and more restrictions being thrown up.
America is unique in the sense that one-third of its population is obese and roughly half is overweight.
While people ought to be able to decide, the American public should bear in mind not just the weighty power of the state but also that of the fast food giants. Having the government unilaterally decide everything cannot be politically healthy in the long run. At the same time, unrestricted, harmful for-profit activities should be reigned in.
Youths deserve special attention and protection, however. And how events unfold in the United States may set a precedent for many other parts of the world as the export of American junk food culture has pervaded nations near and far - even those once remote.
Saturday, October 17, 2009
Coke rolls out "mini-cans" in calorie war
Coca-Cola Co said on Wednesday it would launch 90-calorie mini cans of soda to help consumers manage their calorie intake.
The world's largest soft-drink maker said the smaller packages would be available for the Coca-Cola, Sprite, Fanta Orange, Cherry Coca-Cola and Barq's Root Beer brands. The cans will be sold in packages of eight.
The mini cans will debut in New York and Washington D.C. in December. Their nationwide roll-out should be "well under way" by March, the company said.
The Atlanta-based company said last month it would include calorie infor-mation on the front of nearly all its packages as it intensifies efforts to raise consumer awareness about nutrition and a healthy lifestyle. The moves come in the wake of increasingly vocal calls in Washington for taxes on sugary drinks and junk food to help fight the problem of obesity in the United States.
The world's largest soft-drink maker said the smaller packages would be available for the Coca-Cola, Sprite, Fanta Orange, Cherry Coca-Cola and Barq's Root Beer brands. The cans will be sold in packages of eight.
The mini cans will debut in New York and Washington D.C. in December. Their nationwide roll-out should be "well under way" by March, the company said.
The Atlanta-based company said last month it would include calorie infor-mation on the front of nearly all its packages as it intensifies efforts to raise consumer awareness about nutrition and a healthy lifestyle. The moves come in the wake of increasingly vocal calls in Washington for taxes on sugary drinks and junk food to help fight the problem of obesity in the United States.
Tuesday, October 13, 2009
READY-TO-DRINK SEGMENT RECORDS 20% GROWTH
The fruit-juice market grew by 7 per cent to Bt8.2 billion over the last 12 months, thanks to brisk sales of mass market products.
"We have seen growth at about 10 per cent each in both the medium and economy ready-to-drink fruit juice segments, worth Bt600 million and Bt2.7 billion respectively," Pathumrat Pianchorb, the director in charge of branded business for the country's leading fruit juice company, Malee Sampran, said yesterday.
"However, the Bt1.4-billion super economy ready-to-drink fruit juice segment has enjoyed trementdous growth of almost 20 per cent over the past 12 months," she said.
With the rebound in the economy and consumers' purchasing power, the company has witnessed signs of recovery in the fruit juice market over the last two months, she said.
Only the premium ready-to-drink 100-per cent fruit juice segment worth Bt2.8 billion was expected to decline 3 per cent in the period, caused by a fall in pasteurised fruit juice as consumers opted for cheaper products, such as economy and super economy fruit juices.
The market for pasteurised ready-to-drink fruit juice peroducts, which is worth about Bt300 million, dropped sharply by 20 per cent year over the past 12 months as consumers shifted to products with lower prices and longer shelf lives.
There are also many new players competing in the economy product segment.
Malee Sampran expects its sales to increase 5-10 per cent this year to Bt1.8 billion-bt2 billion, of which about 55 per cent is fruit juice and 45 per cent non-fruit juice.
"We are looking to develop and launch non-juice products as well as below 100-per-cent fruit juices next year to balance our product portfolio," she said.
Malee Sampran has budgeted Bt5 million to promote Malee i-Corn, a 100-per-cent corn milk beverage, during the 10 days of the Chinese Gin Je Festival starting on Saturday.
During this period, Chinese like eating vegetarian food.
"It is a great opportunity for us to boost the penetration of our Malee i-Corn corn milk beverage, particularly among the Chinese, who avoid drink dairy beverages during the Gin Je festival," she said.
The company expects Bt200 million in sales of Malee i-Corn during the festival.
Malee i-Corn now leads the Bt120-million UHT corn milk beverage market with a 30-per-cent share.
The market is projected to expand by about 5 per cent this year.
The company aims to increase Malee i-Corn's share to 35-40 per cent by next year.
"We have seen growth at about 10 per cent each in both the medium and economy ready-to-drink fruit juice segments, worth Bt600 million and Bt2.7 billion respectively," Pathumrat Pianchorb, the director in charge of branded business for the country's leading fruit juice company, Malee Sampran, said yesterday.
"However, the Bt1.4-billion super economy ready-to-drink fruit juice segment has enjoyed trementdous growth of almost 20 per cent over the past 12 months," she said.
With the rebound in the economy and consumers' purchasing power, the company has witnessed signs of recovery in the fruit juice market over the last two months, she said.
Only the premium ready-to-drink 100-per cent fruit juice segment worth Bt2.8 billion was expected to decline 3 per cent in the period, caused by a fall in pasteurised fruit juice as consumers opted for cheaper products, such as economy and super economy fruit juices.
The market for pasteurised ready-to-drink fruit juice peroducts, which is worth about Bt300 million, dropped sharply by 20 per cent year over the past 12 months as consumers shifted to products with lower prices and longer shelf lives.
There are also many new players competing in the economy product segment.
Malee Sampran expects its sales to increase 5-10 per cent this year to Bt1.8 billion-bt2 billion, of which about 55 per cent is fruit juice and 45 per cent non-fruit juice.
"We are looking to develop and launch non-juice products as well as below 100-per-cent fruit juices next year to balance our product portfolio," she said.
Malee Sampran has budgeted Bt5 million to promote Malee i-Corn, a 100-per-cent corn milk beverage, during the 10 days of the Chinese Gin Je Festival starting on Saturday.
During this period, Chinese like eating vegetarian food.
"It is a great opportunity for us to boost the penetration of our Malee i-Corn corn milk beverage, particularly among the Chinese, who avoid drink dairy beverages during the Gin Je festival," she said.
The company expects Bt200 million in sales of Malee i-Corn during the festival.
Malee i-Corn now leads the Bt120-million UHT corn milk beverage market with a 30-per-cent share.
The market is projected to expand by about 5 per cent this year.
The company aims to increase Malee i-Corn's share to 35-40 per cent by next year.
Friday, October 2, 2009
Coke makes calorie info more prominent
Coca-Cola Co will change the packaging on almost all its products to more prominently display certain nutritional facts amid increasing pressure on lawmakers to consider taxes on sugary sodas, which some health experts blame for rising obesity rates
The effort, announced on Wednesday,will place calories-per-serving and servings-per-container details on the side of almost all of the soft drink maker's products sold in more than 200 countries.Only fountain drinks, water and beverages sold in reusable bottles will be exempted from the switch.
The company said it "hopes the broken-out details - displayed in black text set in a white oblong box - will be more convenient for customers who want quick nutritional information at a glance."
"Nowmore than ever, people expect facts about the products they consume to be both readily available and visible,"chairman and CEOMuhtar Kent said in a statement.
But some critics see the change as little more than an effort aimed at fending off a possible tax on its products, in-cluding a levy being promoted in a September issue of the New England Journal of Medicine ."One might perceive this move as the companies trying to make an appearance of good-faith efforts to improve nutrition, where their real motive might be too fight off government regulation,"said Kelly Brownell, director of Yale University's Rudd Centre for Food Policy and Obesity, who proposed the tax in the medical journal.
Taxes on soft drinks aren't new. But of the nearly three dozen states that charge sales tax on the beverages, most levies are typically small - averaging about 5%. On a $1 can of soda, that translates to about five cents.
The proposal offered by group of nutrition and economics experts in the medical journal calls for a one-centper-ounce sales tax on the sometimescaloric and sugary drinks, an amount more than double the average state tax.It would increase the levy on that 12 oz.soda can to 12 cents.
Coke, which opposes a potential soda tax, says its beefed up labeling isn't about fending off extra taxes, but is about promoting better health among its customers."There's no silver bullet," spokeswoman Allyson Park said.
"Our company is committed to helping address obesity by encouraging active,healthy living through our products, programs and policies."
Coke said it's already changed packaging on products in Europe and Australia and is in the process of changing labels in the US and Mexico.
Bottles and cans will continue to have regular nutritional labels with more detailed information on the back.
The company expects to complete the switch by the end of 2011, but sooner in the US and Canada where the labels will be added by the end of 2010.
John Sicher, editor and publisher of the trade publication Beverage Digest ,said other competitors could take similar steps in the future."I think we're going to see all the major beverage companies take more initiatives to both increase the health and wellness aspects of their portfolios and to communicate their sense of responsibility to their consumers," he said.
The effort, announced on Wednesday,will place calories-per-serving and servings-per-container details on the side of almost all of the soft drink maker's products sold in more than 200 countries.Only fountain drinks, water and beverages sold in reusable bottles will be exempted from the switch.
The company said it "hopes the broken-out details - displayed in black text set in a white oblong box - will be more convenient for customers who want quick nutritional information at a glance."
"Nowmore than ever, people expect facts about the products they consume to be both readily available and visible,"chairman and CEOMuhtar Kent said in a statement.
But some critics see the change as little more than an effort aimed at fending off a possible tax on its products, in-cluding a levy being promoted in a September issue of the New England Journal of Medicine ."One might perceive this move as the companies trying to make an appearance of good-faith efforts to improve nutrition, where their real motive might be too fight off government regulation,"said Kelly Brownell, director of Yale University's Rudd Centre for Food Policy and Obesity, who proposed the tax in the medical journal.
Taxes on soft drinks aren't new. But of the nearly three dozen states that charge sales tax on the beverages, most levies are typically small - averaging about 5%. On a $1 can of soda, that translates to about five cents.
The proposal offered by group of nutrition and economics experts in the medical journal calls for a one-centper-ounce sales tax on the sometimescaloric and sugary drinks, an amount more than double the average state tax.It would increase the levy on that 12 oz.soda can to 12 cents.
Coke, which opposes a potential soda tax, says its beefed up labeling isn't about fending off extra taxes, but is about promoting better health among its customers."There's no silver bullet," spokeswoman Allyson Park said.
"Our company is committed to helping address obesity by encouraging active,healthy living through our products, programs and policies."
Coke said it's already changed packaging on products in Europe and Australia and is in the process of changing labels in the US and Mexico.
Bottles and cans will continue to have regular nutritional labels with more detailed information on the back.
The company expects to complete the switch by the end of 2011, but sooner in the US and Canada where the labels will be added by the end of 2010.
John Sicher, editor and publisher of the trade publication Beverage Digest ,said other competitors could take similar steps in the future."I think we're going to see all the major beverage companies take more initiatives to both increase the health and wellness aspects of their portfolios and to communicate their sense of responsibility to their consumers," he said.
DANONE SETTLES WITH WAHAHA, SELLS FULL JV STAKE
Food giant Danone and China's largest soft drink maker Wahaha put an amicable end to their long-standing feud yesterday, with the French firm selling its full 51-per-cent stake in their joint ventures.
The deal between the companies, which together ran 39 joint ventures, is still subject to the approval of Chinese authorities but has the "support" of the governments in Paris and Beijing, the firms said in a statement.
"The completion of this settlement will put an end to all legal proceedings related to the disputes between the two parties," they said.
The statement did not give any financial details of the deal, and Wahaha spokesman Shan Qining delcined to release any figures.
The feud began when Danone said it had discovered that Wahaha chairman Zong Qinghou had set up an entire production and distribution network in parallel to the French firm's joint ventures with Wahaha.
In mid-2007 the French firm sought an arbitration ruling, accusing the Chinese beverage gaint of breach of agreement by selling Wahaha-branded drinks without its permission.
"The collaboration between Danone and Wahaha helped to build a strong and respected leader in the Chinese beverage industry," Danone chairman and chief executive Franck Riboud said in the statement.
"We are confident that Wahaha will continue to be highly successful under its future management."
Danone remains committed to China, Riboud said, adding the company was "keen to accelerate the success of our Chinese activities".
The dispute had sparked a series of retaliatory moves in China and abroad, including in the United States and Sweden.
The deal between the companies, which together ran 39 joint ventures, is still subject to the approval of Chinese authorities but has the "support" of the governments in Paris and Beijing, the firms said in a statement.
"The completion of this settlement will put an end to all legal proceedings related to the disputes between the two parties," they said.
The statement did not give any financial details of the deal, and Wahaha spokesman Shan Qining delcined to release any figures.
The feud began when Danone said it had discovered that Wahaha chairman Zong Qinghou had set up an entire production and distribution network in parallel to the French firm's joint ventures with Wahaha.
In mid-2007 the French firm sought an arbitration ruling, accusing the Chinese beverage gaint of breach of agreement by selling Wahaha-branded drinks without its permission.
"The collaboration between Danone and Wahaha helped to build a strong and respected leader in the Chinese beverage industry," Danone chairman and chief executive Franck Riboud said in the statement.
"We are confident that Wahaha will continue to be highly successful under its future management."
Danone remains committed to China, Riboud said, adding the company was "keen to accelerate the success of our Chinese activities".
The dispute had sparked a series of retaliatory moves in China and abroad, including in the United States and Sweden.
Danone settles with Wahaha, sells venture stake
The French food giant Group Danone SA said yesterday it had ended its longstanding feud with Wahaha, China's largest soft-drink maker,by agreeing to sell its 51% stake in their joint ventures.
"The amicable settlement between the companies, which together ran 39 joint ventures, is subject to Chinese regulatory approval but has the support of Paris and Beijing," the companies said in a joint statement.
"The completion of this settlement will put an end to all legal proceedings related to the disputes between the two parties," they said.
The statement did not give any financial details of the deal, and Wahaha spokesman Shan Qining declined to release any figures.
The feud began when Danone said it had discovered that Wahaha chairman Zong Qinghou had set up an entire production and distribution network in parallel to the French firm's joint ventures with Wahaha.
In mid-2007 the French firm sought an arbitration ruling, accusing the Chinese beverage giant of breach of agreement by selling Wahaha-branded drinks without its permission.
"The collaboration between Danone and Wahaha helped to build a strong and respected leader in the Chinese beverage industry," Danone chairman and chief executive Franck Riboud said in the statement."We are confident that Wahaha will continue to be highly successful under its future management."
"Danone remains committed to China," Riboud said, adding the company was keen to accelerate the success of our Chinese activities.
The dispute had sparked a series of retaliatory moves in China and abroad,including in the United States and Sweden.
A Chinese court ruled last year that Wahaha owned the trademark, which was valued by the state-controlled China Daily newspaper at $2.4 billion.
The feud between the two companies was at turns bitter and personal, with Danone trying to install a French executive to replace Zong as chairman in mid-2007. Zong fought off the move,declaring it illegal.
The dispute also struck a nationalist chord, with Zong accusing his French partners of trying to steal a Chinese brand.
But the Wahaha chairman on yesterday adopted a more friendly tone.
"China is an open country. Chinese people are broad-minded people.Chinese companies are willing to cooperate and grow with the world's leading peers on the basis of equality and reciprocal benefit," Zong said in the statement.
Zong founded Wahaha in 1987 selling milk products in a school store.
Danone and Wahaha formed their joint venture in 1996, and the Chinese drink maker credits the foreign investment and technology it gained through that partnership with helping to transform it into a national brand.
Lao Bing, a Shanghai-based food and beverage analyst, however said Chinese companies might see the case as a cautionary tale about the risks of relying on foreign partners.
"They should learn to think twice about the power of capital and that they may no longer have full control over the situation," Lao said."They must not just sign agreements to attract capital,because clauses could jeopardise their development in the future."
"The amicable settlement between the companies, which together ran 39 joint ventures, is subject to Chinese regulatory approval but has the support of Paris and Beijing," the companies said in a joint statement.
"The completion of this settlement will put an end to all legal proceedings related to the disputes between the two parties," they said.
The statement did not give any financial details of the deal, and Wahaha spokesman Shan Qining declined to release any figures.
The feud began when Danone said it had discovered that Wahaha chairman Zong Qinghou had set up an entire production and distribution network in parallel to the French firm's joint ventures with Wahaha.
In mid-2007 the French firm sought an arbitration ruling, accusing the Chinese beverage giant of breach of agreement by selling Wahaha-branded drinks without its permission.
"The collaboration between Danone and Wahaha helped to build a strong and respected leader in the Chinese beverage industry," Danone chairman and chief executive Franck Riboud said in the statement."We are confident that Wahaha will continue to be highly successful under its future management."
"Danone remains committed to China," Riboud said, adding the company was keen to accelerate the success of our Chinese activities.
The dispute had sparked a series of retaliatory moves in China and abroad,including in the United States and Sweden.
A Chinese court ruled last year that Wahaha owned the trademark, which was valued by the state-controlled China Daily newspaper at $2.4 billion.
The feud between the two companies was at turns bitter and personal, with Danone trying to install a French executive to replace Zong as chairman in mid-2007. Zong fought off the move,declaring it illegal.
The dispute also struck a nationalist chord, with Zong accusing his French partners of trying to steal a Chinese brand.
But the Wahaha chairman on yesterday adopted a more friendly tone.
"China is an open country. Chinese people are broad-minded people.Chinese companies are willing to cooperate and grow with the world's leading peers on the basis of equality and reciprocal benefit," Zong said in the statement.
Zong founded Wahaha in 1987 selling milk products in a school store.
Danone and Wahaha formed their joint venture in 1996, and the Chinese drink maker credits the foreign investment and technology it gained through that partnership with helping to transform it into a national brand.
Lao Bing, a Shanghai-based food and beverage analyst, however said Chinese companies might see the case as a cautionary tale about the risks of relying on foreign partners.
"They should learn to think twice about the power of capital and that they may no longer have full control over the situation," Lao said."They must not just sign agreements to attract capital,because clauses could jeopardise their development in the future."
Starbucks coffee brewed in an instant
Chief executive Howard Schultz called "Via Ready Brew"perhaps the biggest opportunity in Starbucks Corp's history as he prepared for the instant coffee product's North American roll-out.
With Via, the coffee chain that introduced espresso drinks to the masses,hopes to steal a big slice of the $21 billion global instant coffee market from established players like Nestle SA's Nescafe and Kraft Foods Inc's Sanka.
"This is the biggest investment we've made in a national launch," said Schultz,who is navigating a turnaround at Starbucks while looking for new products to drive profits.
Starbucks will trumpet Via's debut in the United States and Canada with a week-long advertising campaign that will highlight in-store taste tests pitting Via against Starbucks brewed coffee.
Some analysts have questioned whether American coffee drinkers will flock to Via, particularly since it will compete with familiar and far less expensive products.
Schultz said that due to the higher quality of Via, it would not compete with existing instant coffee products.He added that Via did not cannibalise Starbucks main business in markets where it was tested.
"This is not your grandmother's instant coffee," Schultz said."The quality of Starbucks Via is a mirror image of the quality and taste of Starbucks brewed coffee."
While the CEO said that Via exceeded expectations when it was tested in Seattle,Chicago and London, he declined to reveal expectations for Via profits, the cost of the advertising campaign or the timing of Via's launch in other parts of the world.
A trio of single-serve Via packets will sell for $2.95 in the United States and 12 packets will sell for $9.95. Those prices are significantly higher than Nescafe's Taster's Choice single-serve packets that sell in Los Angeles for roughly $1.50 for six and around $4 for 20.
"Starbucks aficionados won't baulk at the price of Via if they believe it delivers on taste," said Bill Smead, portfolio manager of the Smead Value Fund in Seattle.
William Blair & Co analyst Sharon Zackfia said Via's greatest potential "lies in overseas markets where instant coffee still dominates."
Still, she does believe that Via has added some US coffee drinkers to the ranks of instant coffee users.
"I think (Starbucks) can get a slice of the pie," she said."In Seattle and Chicago,I think they've grown the pie."
Analysts say that grocery stores will be key to Via's success.
Schultz said Starbucks does not yet have a partner to sell Via in supermarkets,but he promises that such a deal will be announced in 2010.
Meanwhile, Schultz said, shoppers can find Via at Starbucks cafes, on United Airlines flights and in Target, Costco,REI, Office Depot and Barnes & Noble stores.
"We think (Via) will have similar results to Starbucks frappuccino and ice cream products sold in grocery stores," portfolio manager Smead said.
Starbucks partners with PepsiCo on bottled frappuccino and with Unilever on ice cream.
"I don't think it will be the core of the business, but it will be a very profitable line," Smead said of Via.
Zackfia said it has been hard for analysts to predict what Via's impact would be, so they have taken a very conservative approach with regard to its impact on Starbucks profits."It could be a potentially positive wild card."
With Via, the coffee chain that introduced espresso drinks to the masses,hopes to steal a big slice of the $21 billion global instant coffee market from established players like Nestle SA's Nescafe and Kraft Foods Inc's Sanka.
"This is the biggest investment we've made in a national launch," said Schultz,who is navigating a turnaround at Starbucks while looking for new products to drive profits.
Starbucks will trumpet Via's debut in the United States and Canada with a week-long advertising campaign that will highlight in-store taste tests pitting Via against Starbucks brewed coffee.
Some analysts have questioned whether American coffee drinkers will flock to Via, particularly since it will compete with familiar and far less expensive products.
Schultz said that due to the higher quality of Via, it would not compete with existing instant coffee products.He added that Via did not cannibalise Starbucks main business in markets where it was tested.
"This is not your grandmother's instant coffee," Schultz said."The quality of Starbucks Via is a mirror image of the quality and taste of Starbucks brewed coffee."
While the CEO said that Via exceeded expectations when it was tested in Seattle,Chicago and London, he declined to reveal expectations for Via profits, the cost of the advertising campaign or the timing of Via's launch in other parts of the world.
A trio of single-serve Via packets will sell for $2.95 in the United States and 12 packets will sell for $9.95. Those prices are significantly higher than Nescafe's Taster's Choice single-serve packets that sell in Los Angeles for roughly $1.50 for six and around $4 for 20.
"Starbucks aficionados won't baulk at the price of Via if they believe it delivers on taste," said Bill Smead, portfolio manager of the Smead Value Fund in Seattle.
William Blair & Co analyst Sharon Zackfia said Via's greatest potential "lies in overseas markets where instant coffee still dominates."
Still, she does believe that Via has added some US coffee drinkers to the ranks of instant coffee users.
"I think (Starbucks) can get a slice of the pie," she said."In Seattle and Chicago,I think they've grown the pie."
Analysts say that grocery stores will be key to Via's success.
Schultz said Starbucks does not yet have a partner to sell Via in supermarkets,but he promises that such a deal will be announced in 2010.
Meanwhile, Schultz said, shoppers can find Via at Starbucks cafes, on United Airlines flights and in Target, Costco,REI, Office Depot and Barnes & Noble stores.
"We think (Via) will have similar results to Starbucks frappuccino and ice cream products sold in grocery stores," portfolio manager Smead said.
Starbucks partners with PepsiCo on bottled frappuccino and with Unilever on ice cream.
"I don't think it will be the core of the business, but it will be a very profitable line," Smead said of Via.
Zackfia said it has been hard for analysts to predict what Via's impact would be, so they have taken a very conservative approach with regard to its impact on Starbucks profits."It could be a potentially positive wild card."
Foreign orders add weight to recovery
Prospects have improved for the local paper industry due to a revival in overseas demand and prices, says Siam Cement Group.
Thailand's top industrial conglomerate said the demand for paper fell by almost 20% in the first half when compared with the same period in 2008 due to the sluggish economy. But the figure has improved in the second half due to larger exports, Chaovalit Ekabut, the president of SCG Paper, said yesterday.
Orders rose in the second quarter over the first three months while third quarter orders remain steady."The overall consumption of paper this year will be lower from last year but it should not be a double-digit decline," he said.
Paper prices, which fell 15% to 20%in the first half year-on-year, have started rising. The prices are now lower than last year's peak by 10% to 15%, Mr Chaovalit added.
The company is focusing on high value-added products to increase their contribution to its overall portfolio to 25% in 2010, up from 20% this year, to enjoy higher profit margins.
SCG Paper, Thailand's largest paper manufacturer, yesterday launched a coffee-cup sleeve produced from recycled paper that comes with a "Thermozense"heat indicator which will be available at True Coffee cafes.
Mr Chaovalit said the new product has been developed under SCG's principle of "green inspiration", which promotes environmental responsibility among consumers. An initial run of 100,000 heat indicators has been produced. The colour of the sticker changes from red to white as the coffee cools.
"True is aiming for technology that enables us to have a better experience in our daily lives and SCG has helped us by creating the innovation that we have been searching for for a long time," said Papon Ratanachaikanont, assistant to the president of True Corp.
"In the past, we depended on foreignmade products by using coffee sleeves imported from China. Now that there are new sleeves from SCG, it will lower our cost by 30%," he said.
Shares of Siam Cement (SCC) closed yesterday on the Stock Exchange of Thailand at 224 baht, down 5 baht, in trade worth 356 million baht.
Thailand's top industrial conglomerate said the demand for paper fell by almost 20% in the first half when compared with the same period in 2008 due to the sluggish economy. But the figure has improved in the second half due to larger exports, Chaovalit Ekabut, the president of SCG Paper, said yesterday.
Orders rose in the second quarter over the first three months while third quarter orders remain steady."The overall consumption of paper this year will be lower from last year but it should not be a double-digit decline," he said.
Paper prices, which fell 15% to 20%in the first half year-on-year, have started rising. The prices are now lower than last year's peak by 10% to 15%, Mr Chaovalit added.
The company is focusing on high value-added products to increase their contribution to its overall portfolio to 25% in 2010, up from 20% this year, to enjoy higher profit margins.
SCG Paper, Thailand's largest paper manufacturer, yesterday launched a coffee-cup sleeve produced from recycled paper that comes with a "Thermozense"heat indicator which will be available at True Coffee cafes.
Mr Chaovalit said the new product has been developed under SCG's principle of "green inspiration", which promotes environmental responsibility among consumers. An initial run of 100,000 heat indicators has been produced. The colour of the sticker changes from red to white as the coffee cools.
"True is aiming for technology that enables us to have a better experience in our daily lives and SCG has helped us by creating the innovation that we have been searching for for a long time," said Papon Ratanachaikanont, assistant to the president of True Corp.
"In the past, we depended on foreignmade products by using coffee sleeves imported from China. Now that there are new sleeves from SCG, it will lower our cost by 30%," he said.
Shares of Siam Cement (SCC) closed yesterday on the Stock Exchange of Thailand at 224 baht, down 5 baht, in trade worth 356 million baht.
THAIBEV TO USE SPORT IN WIDENING NON-ALCOHOLIC DRINKS PORTFOLIO
Thai Beverage is entering the sports or electrolyte drink market through the launch of Power Plus jproducts to help balance out its alcoholic beverage business.
"The company will focus on penetrating the non-alcoholic beverae market, as the revenue from this segment is only 1 per cent of the total. The portion is too small given the company's mission to be an integrated beverage company," Marut Buranasetkul, deputy managing director of Thai Beverage Marketing, said yesterday.
ThaiBev has already taken over energy-drink maker Wrangyer, as its first step in diversifying away from the alcohol business.
ThaiBev's sales in the first half of this year were up only 0.9 per cent on year to Bt54 billion, while net profit rose 9.7 per cent to Bt5.8 billion on improved margins.
ThaiBev wil keep launching three to four products a year, both through its own innovation and through part nership with other companies.
To boost its nonkk-alcoholic bever age business, the company next year would embark on an image-building campaing. Its non-alcolic portfolio now covers sodas,bottled water, coffee and energy drinks.
Power Plus is targeted to be the No by 2012, which requires sales growth of over 15 per cent per year, Marut said. Sponsor controls 60 per cent of the market, follwed by M Sport with 25-30 per cent and Gatorade with 5-10 per cent.
The company has set aside a Bt70 million marketing budget for the new products, targeting health-conscious people as well as sportsmen, to achieve the first-year sales target of Bt300 million or 10 per cent of the market.
At the end of next month, Power Plus will be available in modern trade channels, with sales outlets to be expanded later.
"We haven't invested hugely in the product,as it is made by the Wrangyer factory and wil be supported by Thai Beverage's strong distribution network," he said.
To penetrate the export market,ThaiBev yesterday signed on as an official sponsor for the 25th SEA Games in Vientiane, with Power Plus as its main sponsorship product.
Power Plus is targeted to be No2 player in the sports drink segment by 2012-an annual growth of 15 per cent.
Power Plus joins fray: Thai Beverage is entering the sports or electrolyte drink market through the launch of Power Plus products to help balance out its alcoholic beverage business.
"The company will focus on penetrating the non-alcoholic beverae market, as the revenue from this segment is only 1 per cent of the total. The portion is too small given the company's mission to be an integrated beverage company," Marut Buranasetkul, deputy managing director of Thai Beverage Marketing, said yesterday.
ThaiBev has already taken over energy-drink maker Wrangyer, as its first step in diversifying away from the alcohol business.
ThaiBev's sales in the first half of this year were up only 0.9 per cent on year to Bt54 billion, while net profit rose 9.7 per cent to Bt5.8 billion on improved margins.
ThaiBev wil keep launching three to four products a year, both through its own innovation and through part nership with other companies.
To boost its nonkk-alcoholic bever age business, the company next year would embark on an image-building campaing. Its non-alcolic portfolio now covers sodas,bottled water, coffee and energy drinks.
Power Plus is targeted to be the No by 2012, which requires sales growth of over 15 per cent per year, Marut said. Sponsor controls 60 per cent of the market, follwed by M Sport with 25-30 per cent and Gatorade with 5-10 per cent.
The company has set aside a Bt70 million marketing budget for the new products, targeting health-conscious people as well as sportsmen, to achieve the first-year sales target of Bt300 million or 10 per cent of the market.
At the end of next month, Power Plus will be available in modern trade channels, with sales outlets to be expanded later.
"We haven't invested hugely in the product,as it is made by the Wrangyer factory and wil be supported by Thai Beverage's strong distribution network," he said.
To penetrate the export market,ThaiBev yesterday signed on as an official sponsor for the 25th SEA Games in Vientiane, with Power Plus as its main sponsorship product.
Power Plus is targeted to be No2 player in the sports drink segment by 2012-an annual growth of 15 per cent.
Power Plus joins fray: Thai Beverage is entering the sports or electrolyte drink market through the launch of Power Plus products to help balance out its alcoholic beverage business.
TREND RISKS REDUCED BY HIGH VALUE-ADDED
SCG Paper, a business unit of the Siam Cement Group, plans to boost its proportion of revenue from high value-added paper to 25 per cent by next year.
The move will be aimed at diver-sifying risks arising from general paper consumption, which usually follows economic trends.
President Chaovalit Ekabut yesterday said sales revenue form high value-added paper had showed a slight year-on-year increase so far, while revenue from other products had fallen, due to the economic slowdown.
The proportion of company revenue generated by high value-added paper is about 20 per cent this year, and that is set to increase.
SCG Paper generated revenue fo Bt47.11 bilion last year.
"Paper consumption, both domestically and in export markets, is in line with the world economic situation. If we focus more on innovative products, we have a greater chance of expanding our client base and our markets. At present, SCG Paper manufactures high valueadded products made from paper for several clients," he said.
Chaovlit said total paper consumption in the first half of the year fell 20 per cent year on year in volume, while paper prices fell 15-20 percent. SCG Paper's first-half sales volume declined at a double-kigit rate from a year earlier, but its figures are still better than those of the overall market.
paper-consumption trends and paper prices have been improving in the second half, thanks to the econow 10-15 per ecnt lower than at this time last year.
If Thailand's exports recover in the fourth quarter and early next year, then demand for paper should also improve, he said.
SCG Paper recently began manufacturing coffee sleeves made from recycled paper. The sleeves come with ThermoXense, a heat-indicator sticker that is produced exclusively for True Coffee. If the beverage in the sleeve is hot, the heat indicatkor turns from a red colour to white. SCG Paper has produced 100,000 ThermoZense sleeves for True Coffee and may produce more in the future.
Papon Ratanachaikanont, assistant to True Corp's president, said True Coffee had cancelled the importation of coffee sleeves from China and switched to ordering them from SCG Paper, a Thai manufacturer.
He said True Coffee would raise its full-year revenue target after achieving its earlier target of Bt140 million in only the first half.
The move will be aimed at diver-sifying risks arising from general paper consumption, which usually follows economic trends.
President Chaovalit Ekabut yesterday said sales revenue form high value-added paper had showed a slight year-on-year increase so far, while revenue from other products had fallen, due to the economic slowdown.
The proportion of company revenue generated by high value-added paper is about 20 per cent this year, and that is set to increase.
SCG Paper generated revenue fo Bt47.11 bilion last year.
"Paper consumption, both domestically and in export markets, is in line with the world economic situation. If we focus more on innovative products, we have a greater chance of expanding our client base and our markets. At present, SCG Paper manufactures high valueadded products made from paper for several clients," he said.
Chaovlit said total paper consumption in the first half of the year fell 20 per cent year on year in volume, while paper prices fell 15-20 percent. SCG Paper's first-half sales volume declined at a double-kigit rate from a year earlier, but its figures are still better than those of the overall market.
paper-consumption trends and paper prices have been improving in the second half, thanks to the econow 10-15 per ecnt lower than at this time last year.
If Thailand's exports recover in the fourth quarter and early next year, then demand for paper should also improve, he said.
SCG Paper recently began manufacturing coffee sleeves made from recycled paper. The sleeves come with ThermoXense, a heat-indicator sticker that is produced exclusively for True Coffee. If the beverage in the sleeve is hot, the heat indicatkor turns from a red colour to white. SCG Paper has produced 100,000 ThermoZense sleeves for True Coffee and may produce more in the future.
Papon Ratanachaikanont, assistant to True Corp's president, said True Coffee had cancelled the importation of coffee sleeves from China and switched to ordering them from SCG Paper, a Thai manufacturer.
He said True Coffee would raise its full-year revenue target after achieving its earlier target of Bt140 million in only the first half.
Friday, September 25, 2009
PEPSICO NAMED ON CHINESE BLACKLIST
Many foreign companies, including PepsiCo and Mead Johnson, from 25 countries have been blacklisted by a monthly report from the State Council watchdog in charge of product quality.
Among the firms blacklisted, the most prominent was PepsiCo, which has its international branch based in New York. Nearly 38 tonnes of frozen concentrated orange juice that the firm allegedly imported from Louis Dreyfus Citrus Trading in Brazil in July were found with excessive years, according to the website of the General Administration of Quality Supervision, Inspection and Quarantine. Excessive yeast causes foods to spoil faster.
The watchdog issues its report monthly and names unqualified imported goods. Though the listing has no economic impact on the firms listed, the banned products are either return-ed or destroyed.
Mead Johnson, the plarmaceutical manufacturer based in Illinois, allegedly imported 300 kilograms of baby formula in July with substandard protein.
Some 150 other batches of food, beverages and dosmetics from more than 20 countries were also deemed unqualified in July. A quarter of the substandard products came from the US.
Among the firms blacklisted, the most prominent was PepsiCo, which has its international branch based in New York. Nearly 38 tonnes of frozen concentrated orange juice that the firm allegedly imported from Louis Dreyfus Citrus Trading in Brazil in July were found with excessive years, according to the website of the General Administration of Quality Supervision, Inspection and Quarantine. Excessive yeast causes foods to spoil faster.
The watchdog issues its report monthly and names unqualified imported goods. Though the listing has no economic impact on the firms listed, the banned products are either return-ed or destroyed.
Mead Johnson, the plarmaceutical manufacturer based in Illinois, allegedly imported 300 kilograms of baby formula in July with substandard protein.
Some 150 other batches of food, beverages and dosmetics from more than 20 countries were also deemed unqualified in July. A quarter of the substandard products came from the US.
Tuesday, September 22, 2009
OISHI MD TAN MAKES A SPLASH IN REAL ESTATE
Tan Passakornnatee, Oishi Group managing director, plans several major investments in property and hospitality projects in the coming year.
A condominium projects on Sukhumvit Road worth Bt2.5 billion will be his first investment next year, following an investment of Bt450 million to develop a luxury hotel, Villa Maroc, in Pranburi district of Prachuab Khiri Khan province three years ago. Villa Maroc will have its grand opening on Jan 1.
Tan said he began investing his own money in property three years ago, spending between Bt2 billion and Bt3 billion to collect undeveloped land in Bangkok, Chiang Mai, Lopburi land Pranburi district.
He said that after collecting more land, he plans to developed residences and hospitality projects from next year until 2012.
The first project will be a condominium block worth Bt2.5 billion. Tan is in negotiations with strategic partners to develop this project.
He has also joined with Siam Future Development to develop unused land in Chang Mai as a community mall. Investment will begin next year. Among other plans are the development of land in Lopburi province as a weekend market.
Meanwhile, land owned by Tan on Ploenchit Road, which currently houses a Caltex petrol station, will be developed into a hotel when the petrol station's lease expires in three or four years.
Tan also has 12 rai of land on Soi Thong Lor. Currently it is being used as a soccer field but Tan thinks it has potential for development.
"When we decided to invest in the property business, we saw a business opportunity that was different from the kind that lures others investors, who are often drawn to in stocks or gold, or deposit their money in the bank," he said. While the returns on bank deposits are currently lower than inflation, he said, investment in land makems sense in the long term.
"We aren't concerned solely about high return on investment. Our priorities are that our investments," he said.
When he started to develop Villa Maroc in Pranburi, Tan spent Bt450 million on just 15 rooms. That is not a recipe for a high return on investment. But he believed in taking the long-term view that the more important goal was creating an attractive tourist destination in Pranburi district. "When tourists visit Pranburi, they have to visit Villa Maroc," was the goal.
For his condominium project on Sukhumvit, Than is nekgotiating with a strategic partner.
His future projects will also find require strategic partners, due to Tan's philosophyj that when it comes to business, he does not know everything.
Tan built the Oishi Group, which manages Japanese restaurants and produces and distributes green tea under the Oishi brand, then sold a stake to beverage tycoon Charoen Siriwattanabhakdi. He still holds a stake in Oishi and remains its managing director.
A condominium projects on Sukhumvit Road worth Bt2.5 billion will be his first investment next year, following an investment of Bt450 million to develop a luxury hotel, Villa Maroc, in Pranburi district of Prachuab Khiri Khan province three years ago. Villa Maroc will have its grand opening on Jan 1.
Tan said he began investing his own money in property three years ago, spending between Bt2 billion and Bt3 billion to collect undeveloped land in Bangkok, Chiang Mai, Lopburi land Pranburi district.
He said that after collecting more land, he plans to developed residences and hospitality projects from next year until 2012.
The first project will be a condominium block worth Bt2.5 billion. Tan is in negotiations with strategic partners to develop this project.
He has also joined with Siam Future Development to develop unused land in Chang Mai as a community mall. Investment will begin next year. Among other plans are the development of land in Lopburi province as a weekend market.
Meanwhile, land owned by Tan on Ploenchit Road, which currently houses a Caltex petrol station, will be developed into a hotel when the petrol station's lease expires in three or four years.
Tan also has 12 rai of land on Soi Thong Lor. Currently it is being used as a soccer field but Tan thinks it has potential for development.
"When we decided to invest in the property business, we saw a business opportunity that was different from the kind that lures others investors, who are often drawn to in stocks or gold, or deposit their money in the bank," he said. While the returns on bank deposits are currently lower than inflation, he said, investment in land makems sense in the long term.
"We aren't concerned solely about high return on investment. Our priorities are that our investments," he said.
When he started to develop Villa Maroc in Pranburi, Tan spent Bt450 million on just 15 rooms. That is not a recipe for a high return on investment. But he believed in taking the long-term view that the more important goal was creating an attractive tourist destination in Pranburi district. "When tourists visit Pranburi, they have to visit Villa Maroc," was the goal.
For his condominium project on Sukhumvit, Than is nekgotiating with a strategic partner.
His future projects will also find require strategic partners, due to Tan's philosophyj that when it comes to business, he does not know everything.
Tan built the Oishi Group, which manages Japanese restaurants and produces and distributes green tea under the Oishi brand, then sold a stake to beverage tycoon Charoen Siriwattanabhakdi. He still holds a stake in Oishi and remains its managing director.
Sunday, September 20, 2009
Coca-Cola still world's most valuable brand
Consumers lost trust in brands this year as the recession deepened, according to an industry report released on Thursday, although longtime staples CocaCola and IBM retained their spots as the world's two most valuable brands.
This is the first time the combined value of the world's top 100 brands as ranked by Interbrand, a branding agency,has fallen in the 10 years Interbrand has assessed them. The list's total value,including brands like Google Inc, Nintendo and Sony, fell 4.6% to $1.15 trillion,Interbrand estimates.
"That says something about the environment that we're in, especially when you consider that brands are by nature less volatile than business valuations,"said Interbrand CEO Jez Frampton, who called a company's brand its most valuable asset.
The environment a recession the likes of which the world hasn't seen for decades has eaten away at people's trust in specific brands, starting with financial companies, he said. Consumers even started to question retail brands as stores slashed prices to get sales, leading consumers to wonder about pricing, and why they had to pay so much before.
"All of these things lead you to reevaluate the nature of the relationships that we have with brands and indeed how confident we feel in brands to live up to the promises they make," he said."Brands are promises which we value and are prepared to pay for and if we feel those promises have been broken we're less likely to trust."
Brands are more than just names,colours or logos think Coca-Cola's red or McDonald's golden arches. A brand includes all the elements of a product or service from its design, ingredients and manufacture to its marketing, advertising and logo.
"A well-honed brand evokes in consumers an emotion and a promise of what it will deliver, without the consumer having to do much if any research,"said Allen Adamson, managing director at branding firm Landor Associates.
"Brands are important for all businesses, and critical in categories that have direct consumer contact, like autos,"he said."In a cluttered world where people are time-compressed, brands are short cuts to help them make decisions."
Each year, Interbrand ranks companies by the amount of their revenue that is attributable to their brands, using a formula that takes into account the brand's future strength and its role in creating demand, whether among consumers or business customers or both.
The firm assigns a monetary value to each brand and measures annual growth,in this case from July 1,2008, to June 30,2009.
Given the recession, it was not surprising to see financial companies posting the steepest decline in their brands'values this year, with drops by American Express (now number 22, down from 15) HSBC (now 32, down from 27), Citi (now 36, down from 19), and UBS (now 72, down from 41). Merrill Lynch and AIG both dropped off the list.
Automakers also dropped in the rankings as their sector's sales slumped in the recession. In addition, major US automakers General Motors Corp and Chrysler Group LLC received government aid to stay afloat, which generated negative feelings among consumers. Neither of those brands made the top 100 Interbrand list.
Even Toyota's brand top-ranked among auto companies at number eight,down from 6 in 2008 suffered, while BMW went from 13 to 15, and Ford was unchanged at 49. Honda edged up two slots to 18.
Despite the economic uncertainty,the top 10 brands this year stayed relatively stable, with Coca-Cola Co in the first slot, a place it has held since the rankings started in 2000.
"The soft-drink maker retains its recognition around the world," Frampton said, and it has been releasing new products as it hopes to woo consumers shifting to healthier juices and teas.
Coca-Cola's brand value rose 3% in 2009 to $68.73 billion, while IBM's gained 2% to $60.21 billion.
The technology giant, often known as "Big Blue," also rolled out new products that increased the value of its brand in 2009, according to the report.
The company which sells computer servers, software and technical services to businesses received more than 4,000 US patents during the period, marking the 16th straight year it has received the most.
"Rolling out new products keeps customers interested and spending, even in a recession," Frampton said."Companies can't be idle when times are tough.
"Innovation is the bedrock of any successful company in the future," he said."Nobody can stand still nowadays."
The remaining brands in the top five all lost value but retained their ranks from last year. Microsoft's brand value fell 4% to $56.64 billion to take third,while General Electric's value fell 10%to $47.77 billion for fourth. Nokia lost 3% to place fifth at $34.86 billion.
The value of online giant Google's brand grew the fastest in the world again,rising 25% to $31.98 billion to place seventh, up from 10th place last year and 20th the year before.
Frampton said the company's brand growth "is miraculous," though the report notes that as it gets bigger,"it has to deal with the inevitable mistrust and ugliness ascribed to being a very large,diversified and very profitable company."
But Deborah Mitchell, executive fellow at the Centre for Brand and Product Management at Wisconsin School of Business, thinks Google already has found balance by earning consumers' trust even as it becomes nearly omnipresent in their lives."That's partly due to Google's value statement 'Do no evil' which resonates with consumers, especially in a downturn," she said.
Mitchell said consumers "are increasingly focusing on a company's values and don't want to associate with businesses whose values they question.
"There's been a shift in the focus on values and not just economics to consumers," she said."They're looking more closely at who is selling them what."
This is the first time the combined value of the world's top 100 brands as ranked by Interbrand, a branding agency,has fallen in the 10 years Interbrand has assessed them. The list's total value,including brands like Google Inc, Nintendo and Sony, fell 4.6% to $1.15 trillion,Interbrand estimates.
"That says something about the environment that we're in, especially when you consider that brands are by nature less volatile than business valuations,"said Interbrand CEO Jez Frampton, who called a company's brand its most valuable asset.
The environment a recession the likes of which the world hasn't seen for decades has eaten away at people's trust in specific brands, starting with financial companies, he said. Consumers even started to question retail brands as stores slashed prices to get sales, leading consumers to wonder about pricing, and why they had to pay so much before.
"All of these things lead you to reevaluate the nature of the relationships that we have with brands and indeed how confident we feel in brands to live up to the promises they make," he said."Brands are promises which we value and are prepared to pay for and if we feel those promises have been broken we're less likely to trust."
Brands are more than just names,colours or logos think Coca-Cola's red or McDonald's golden arches. A brand includes all the elements of a product or service from its design, ingredients and manufacture to its marketing, advertising and logo.
"A well-honed brand evokes in consumers an emotion and a promise of what it will deliver, without the consumer having to do much if any research,"said Allen Adamson, managing director at branding firm Landor Associates.
"Brands are important for all businesses, and critical in categories that have direct consumer contact, like autos,"he said."In a cluttered world where people are time-compressed, brands are short cuts to help them make decisions."
Each year, Interbrand ranks companies by the amount of their revenue that is attributable to their brands, using a formula that takes into account the brand's future strength and its role in creating demand, whether among consumers or business customers or both.
The firm assigns a monetary value to each brand and measures annual growth,in this case from July 1,2008, to June 30,2009.
Given the recession, it was not surprising to see financial companies posting the steepest decline in their brands'values this year, with drops by American Express (now number 22, down from 15) HSBC (now 32, down from 27), Citi (now 36, down from 19), and UBS (now 72, down from 41). Merrill Lynch and AIG both dropped off the list.
Automakers also dropped in the rankings as their sector's sales slumped in the recession. In addition, major US automakers General Motors Corp and Chrysler Group LLC received government aid to stay afloat, which generated negative feelings among consumers. Neither of those brands made the top 100 Interbrand list.
Even Toyota's brand top-ranked among auto companies at number eight,down from 6 in 2008 suffered, while BMW went from 13 to 15, and Ford was unchanged at 49. Honda edged up two slots to 18.
Despite the economic uncertainty,the top 10 brands this year stayed relatively stable, with Coca-Cola Co in the first slot, a place it has held since the rankings started in 2000.
"The soft-drink maker retains its recognition around the world," Frampton said, and it has been releasing new products as it hopes to woo consumers shifting to healthier juices and teas.
Coca-Cola's brand value rose 3% in 2009 to $68.73 billion, while IBM's gained 2% to $60.21 billion.
The technology giant, often known as "Big Blue," also rolled out new products that increased the value of its brand in 2009, according to the report.
The company which sells computer servers, software and technical services to businesses received more than 4,000 US patents during the period, marking the 16th straight year it has received the most.
"Rolling out new products keeps customers interested and spending, even in a recession," Frampton said."Companies can't be idle when times are tough.
"Innovation is the bedrock of any successful company in the future," he said."Nobody can stand still nowadays."
The remaining brands in the top five all lost value but retained their ranks from last year. Microsoft's brand value fell 4% to $56.64 billion to take third,while General Electric's value fell 10%to $47.77 billion for fourth. Nokia lost 3% to place fifth at $34.86 billion.
The value of online giant Google's brand grew the fastest in the world again,rising 25% to $31.98 billion to place seventh, up from 10th place last year and 20th the year before.
Frampton said the company's brand growth "is miraculous," though the report notes that as it gets bigger,"it has to deal with the inevitable mistrust and ugliness ascribed to being a very large,diversified and very profitable company."
But Deborah Mitchell, executive fellow at the Centre for Brand and Product Management at Wisconsin School of Business, thinks Google already has found balance by earning consumers' trust even as it becomes nearly omnipresent in their lives."That's partly due to Google's value statement 'Do no evil' which resonates with consumers, especially in a downturn," she said.
Mitchell said consumers "are increasingly focusing on a company's values and don't want to associate with businesses whose values they question.
"There's been a shift in the focus on values and not just economics to consumers," she said."They're looking more closely at who is selling them what."
Wednesday, September 16, 2009
Pepsi campaign
Serm Suk, the local producer and distributor of Pepsi, has earmarked Bt50 million for its latest musical campaign, the Pepsi Asian Music Battle.
To reach new-generation consumers through every channel, the campaign includes a new television commercial starring seven of the hottest K-pop idols and four Chinese superstars, a special trip to South Korea, Pepsi-music gold pendats and other premiums.
Marketing and sales director Parinya Permpanich said Serm suk had been active in all channels since eraly this year.
The company has a 63.2-per-cent market share, up 3 per-centage points from this time lasy year.
To reach new-generation consumers through every channel, the campaign includes a new television commercial starring seven of the hottest K-pop idols and four Chinese superstars, a special trip to South Korea, Pepsi-music gold pendats and other premiums.
Marketing and sales director Parinya Permpanich said Serm suk had been active in all channels since eraly this year.
The company has a 63.2-per-cent market share, up 3 per-centage points from this time lasy year.
A world of difference
In the age of culinary specialisation,the idea sounds preposterous: A restaurant featuring a menu that covers the cuisines of the world OK, not the whole world, but at least French, American, Vietnamese, Mexican,Lebanese, Senegalese, Moroccan, Norwegian, Australian and Caribbean (that's not a country though) as well as Thai.Each country is represented by two or three dishes, except Thailand, which gets about 10. Why these particular nations are covered and others aren't - why Norway and not, say, Denmark?- is hinted at in the owner's background,though the real answer may simply be the vagaries of whim.
Eat's My World is a restaurant on the 7th floor of CentralWorld, tucked away in a rather obscure corner of the complex's food floor near Zen. The owner is Mr Bilal, a Franco-Vietnamese Muslim from Paris. Thus Eat's My World is a halal restaurant supervised by a coterie of Muslim ladies in veils, with the clientele ranging from Thai, Japanese and Chinese to African and Western - in short, a vibrant cosmopolitan clutch of Ratchadamri shoppers.
Our verdict: despite the odd-sounding concept, Eat's My World has enough culinary know-how to endow its diverse dishes with individual integrity. More than anything perhaps, what it tries to do stands out from the tasty yet formulaic franchises of chic restaurants that inhabit most of CentralWorld.
Once seated, a waitress brought us a small cup of dates, an Islamic tradition especially during this fasting month.Scanning the menu, we encountered a number of unfamiliar dishes from farflung countries: Senegalese eggplant cake (99 baht) and chicken yassa (189 baht);kefta from Lebanon (189 baht); chicken creole from the Caribbean (189 baht),Vietnamese beef loc lac (179 baht), Moroccan tagine (189 baht).There are also cheeseburger, representing the US (189 baht), a gratin dish and grilled duck from France (189 and 289 baht), as well as salmon steak, representing Norway (269 baht), though I doubt if any of the ingredients actually come from Scandinavia.
Never mind. We were pleased with what we sampled. Leading the charge would be the tagine . This very Moroccan dish is basically a chicken stew, with Arabic and North African influences,and at Eat's My World, it came in a traditional cone-shaped earthenware pot - like what you'd have in Casablanca - and a serving of sliced baguette.
The broth was aromatic, with a mix of potatoes and eggplant, and was very tasty eaten with the crispy French bread.The chicken meat is tender, but not melting from being soaked too long in the soup. In short, a recommendable tagine , considering there are not that many places in all of Bangkok that serve this Maghrebian dish.
Still in Africa, we proceeded to chicken yassa , reportedly from Senegal. Forgive our ignorance, but we have no way of knowing how authentic this Senegalese dish served at Eat's My World is, but it tasted good anyway.Yassa is a marinated piece of chicken leg topped with a yellowish puddle that reminded us of a mild version of sauerkraut, and served with white rice. The whole thing tasted foreign, if not slightly exotic, with the sour and sweet notes of the sauce kicking in from the first bite.
We moved on to a French item- the owner is from France - and we picked crepe bolo (129 baht). The white, soft crepe wrapped a stuffing of minced meat coated with slightly sweet sauce. It was a light dish that can be shared among a few people, or as a sort of heavy snack in the afternoon. And again, though it's not spectacular it's rather impressive.
Lastly, we tried Lebanese kefta . The dish came with three balls of meat served with French fries and two dippings. At first glance the meat looked just like rotund burgers (without the bread), but the first bite revealed the mysterious aroma of Oriental spices, resembling those used in Indian kebab . I'm sure the Lebanese places around Nana or Suk-humvit can offer a more traditional version of kefta , but the flavourful one we had showed that Eat's My World knows what it's doing.
The final impression as we came out was that this was a restaurant that tries to offer a difference without resorting to hollow gimmicks. It's a mall restaurant that put effort in the cooking.
Eat's My World, I believe, will have to work hard to attract shoppers away from the familiarity of the Japanese joints and fast food chains, and after a satisfying meal last week we wish them all the success.
Eat's My World CentralWorld,7th floor Ratchaprasong intersection Tel 02-251-4299 Open: Daily 10am-10pm
Eat's My World is a restaurant on the 7th floor of CentralWorld, tucked away in a rather obscure corner of the complex's food floor near Zen. The owner is Mr Bilal, a Franco-Vietnamese Muslim from Paris. Thus Eat's My World is a halal restaurant supervised by a coterie of Muslim ladies in veils, with the clientele ranging from Thai, Japanese and Chinese to African and Western - in short, a vibrant cosmopolitan clutch of Ratchadamri shoppers.
Our verdict: despite the odd-sounding concept, Eat's My World has enough culinary know-how to endow its diverse dishes with individual integrity. More than anything perhaps, what it tries to do stands out from the tasty yet formulaic franchises of chic restaurants that inhabit most of CentralWorld.
Once seated, a waitress brought us a small cup of dates, an Islamic tradition especially during this fasting month.Scanning the menu, we encountered a number of unfamiliar dishes from farflung countries: Senegalese eggplant cake (99 baht) and chicken yassa (189 baht);kefta from Lebanon (189 baht); chicken creole from the Caribbean (189 baht),Vietnamese beef loc lac (179 baht), Moroccan tagine (189 baht).There are also cheeseburger, representing the US (189 baht), a gratin dish and grilled duck from France (189 and 289 baht), as well as salmon steak, representing Norway (269 baht), though I doubt if any of the ingredients actually come from Scandinavia.
Never mind. We were pleased with what we sampled. Leading the charge would be the tagine . This very Moroccan dish is basically a chicken stew, with Arabic and North African influences,and at Eat's My World, it came in a traditional cone-shaped earthenware pot - like what you'd have in Casablanca - and a serving of sliced baguette.
The broth was aromatic, with a mix of potatoes and eggplant, and was very tasty eaten with the crispy French bread.The chicken meat is tender, but not melting from being soaked too long in the soup. In short, a recommendable tagine , considering there are not that many places in all of Bangkok that serve this Maghrebian dish.
Still in Africa, we proceeded to chicken yassa , reportedly from Senegal. Forgive our ignorance, but we have no way of knowing how authentic this Senegalese dish served at Eat's My World is, but it tasted good anyway.Yassa is a marinated piece of chicken leg topped with a yellowish puddle that reminded us of a mild version of sauerkraut, and served with white rice. The whole thing tasted foreign, if not slightly exotic, with the sour and sweet notes of the sauce kicking in from the first bite.
We moved on to a French item- the owner is from France - and we picked crepe bolo (129 baht). The white, soft crepe wrapped a stuffing of minced meat coated with slightly sweet sauce. It was a light dish that can be shared among a few people, or as a sort of heavy snack in the afternoon. And again, though it's not spectacular it's rather impressive.
Lastly, we tried Lebanese kefta . The dish came with three balls of meat served with French fries and two dippings. At first glance the meat looked just like rotund burgers (without the bread), but the first bite revealed the mysterious aroma of Oriental spices, resembling those used in Indian kebab . I'm sure the Lebanese places around Nana or Suk-humvit can offer a more traditional version of kefta , but the flavourful one we had showed that Eat's My World knows what it's doing.
The final impression as we came out was that this was a restaurant that tries to offer a difference without resorting to hollow gimmicks. It's a mall restaurant that put effort in the cooking.
Eat's My World, I believe, will have to work hard to attract shoppers away from the familiarity of the Japanese joints and fast food chains, and after a satisfying meal last week we wish them all the success.
Eat's My World CentralWorld,7th floor Ratchaprasong intersection Tel 02-251-4299 Open: Daily 10am-10pm
Tuesday, September 15, 2009
Communicating effectively
Murray Darling, managing director of Starbucks Coffee (Thailand) offers his advice to expatriates running their businesses in Thailand on how to get past the language barrier to communicate effectively and to make sure their plans are rightly executed.Darling: "First of all, language is a small piece of understanding things. Visual, body language tells you more than language.
"Starbucks is all about human connections and human connections [are] way beyond words. I actually find it almost easier to understand our partners [Starbucks staff] here [than] were I to do in other countries where I do speak [their] languages. Because you can tell from the moment you come to the store and see staff smile or you can also tell when things are not right by the body language.
"In two months, I have been to two-thirds of our stores already. So, spending time with the people in the frontlines and just asking questions.
"As a farang, we like to move fast and come to decisions quickly. I would say: take more time and listen to everybody's advice.
"Don't just listen to people who speak good English. Don't be afraid to let the team talk in Thai and discuss in Thai.
"Use an interpreter when needed. And start to learn some Thai and culture even if that's hard."
"Starbucks is all about human connections and human connections [are] way beyond words. I actually find it almost easier to understand our partners [Starbucks staff] here [than] were I to do in other countries where I do speak [their] languages. Because you can tell from the moment you come to the store and see staff smile or you can also tell when things are not right by the body language.
"In two months, I have been to two-thirds of our stores already. So, spending time with the people in the frontlines and just asking questions.
"As a farang, we like to move fast and come to decisions quickly. I would say: take more time and listen to everybody's advice.
"Don't just listen to people who speak good English. Don't be afraid to let the team talk in Thai and discuss in Thai.
"Use an interpreter when needed. And start to learn some Thai and culture even if that's hard."
Monday, September 14, 2009
Drink-up and feel good about it
Starbucks' Thai stores on Saturday officially began serving the chain's 100-per-cent responsibly grown, ethically traded espresso coffee.As part of Starbucks' "Shared Planet" scheme - the company's global commitment to doing business responsibly - the espresso is purchased from farmers and suppliers who follow the company's exacting sourcing standards and guidelines for social, economic and environmental responsibility developed in partnership with the environmental non-profit organisation Conservation International. Murray Darling, managing director of Starbucks Coffee Thailand, said that since its founding, Starbucks has worked to positively impact the lives of farmers and their communities. The responsibly grown espresso is an example of the chain's commitment to doing business the right way, he said.
"It is our assurance to customers that they are making a difference every time they enjoy their favourite espresso-based drink in their local Starbucks," he said.
Starbucks has set itself the goal of purchasing all of its coffee from sources that meet the "responsibly grown and ethically traded" standard by 2015. Last year, 77 per cent of its coffee met the standard. Thai farms are among those the firm is helping to comply with the new requirements, Darling said.
The "Shared Planet" campaign also includes targets on community involvement and environmental stewardship, such as using 100-per cent reusable or recycleable cups by 2015, and for all new company-owned stores to be certified "green" by 2010. This condition is particularly relevant here, as Starbucks Coffee Thailand is one of only about 10 wholly-owned Starbucks subsidiaries in the world.
In Thailand, Starbucks has since last year offered a 10-per-cent discount on all beverages to customers who bring in their own reusable mugs. Marketing and communications director Sumonpin Jotikabukkana said customers are currently bringing in about 32,000 reusable mugs per month, up 50 per cent from last year, reflecting a growing environmental awareness in the Kingdom.
Unlike in the US, where many Starbucks customers order their beverages to go, more Thai customers sit and drink in the stores, which helps the environment because they are served with reusable ceramic mugs.
Already, more than half of the mugs used in Starbucks stores here are reusable and recyclable, Sumonpin said.
"It is our assurance to customers that they are making a difference every time they enjoy their favourite espresso-based drink in their local Starbucks," he said.
Starbucks has set itself the goal of purchasing all of its coffee from sources that meet the "responsibly grown and ethically traded" standard by 2015. Last year, 77 per cent of its coffee met the standard. Thai farms are among those the firm is helping to comply with the new requirements, Darling said.
The "Shared Planet" campaign also includes targets on community involvement and environmental stewardship, such as using 100-per cent reusable or recycleable cups by 2015, and for all new company-owned stores to be certified "green" by 2010. This condition is particularly relevant here, as Starbucks Coffee Thailand is one of only about 10 wholly-owned Starbucks subsidiaries in the world.
In Thailand, Starbucks has since last year offered a 10-per-cent discount on all beverages to customers who bring in their own reusable mugs. Marketing and communications director Sumonpin Jotikabukkana said customers are currently bringing in about 32,000 reusable mugs per month, up 50 per cent from last year, reflecting a growing environmental awareness in the Kingdom.
Unlike in the US, where many Starbucks customers order their beverages to go, more Thai customers sit and drink in the stores, which helps the environment because they are served with reusable ceramic mugs.
Already, more than half of the mugs used in Starbucks stores here are reusable and recyclable, Sumonpin said.
Saturday, September 12, 2009
THE CHEF A LA MODE
Torsit Sarisdiwongse is the man behind the mouthwatering menu at trendy Greyhound Cafe (www.greyhoundcafe.co.th).The executive chef's main duties entail menu design,budgeting, training staff and ensuring the tasteful quality of eight establishments around town.
WHEN DID YOU GET INVOLVED WITH GREYHOUND CAFE? I've been the executive chef since the start - around 12 years now. The first branch is at The Emporium. WAS IT DIFFICULT TO COME UP WITH THE MENU? Most of the dishes were inspired by food that Greyhound Cafe's partners like. Food that they experienced on their travels or their friends' home cooking. We adapted these dishes or re-created them with our own recipes. WHAT WAS THE FIRST GREYHOUND CAFE DISH? Spaghetti with Thai anchovy. At the time I found it quite unusual and didn't think spaghetti and Thai anchovy could go well together. The dish came about when one of Greyhound Cafe's founders, Khun Bhanu Inkawat, went to Milan and tried Italian-style spaghetti with anchovies. He told me briefly about the ingredients, the taste and the presentation of the dish. So I recreated the menu with Thai anchovy and added some local ingredients like dried chilli, peppercorns and sweet basil. I experimented with about 10 recipes until we got Greyhound Cafe's own signature.
HOW LONG DID THE TASTING TAKE WHEN YOU DESIGNED THE MENU? Before we got each dish, we had to try about 10 recipes.When the restaurant first opened, we had around 60 dishes. So we'd tried hundreds of dishes [smiles]. It took about a month for the tasting at first. DOES MENU DESIGN ALSO INVOLVE MARKETING? The marketing department gives me a promotional plan such as the current "Italian Feast". For this promotion I came up with new dishes using Italian sausage. Because most Thais might not be familiar with Italian sausage, I needed to come up with dishes that sell, that suit Thai and foreign palates. DO YOU ALSO HAVE TO TRAIN EVERY SINGLE CHEF? Yes, because each one has a different background. New chefs need one month of training. I train the head chef of each branch as well as the assistants. So that's around 200 people. WHAT'S YOUR FAVOURITE DISH AT THE CAFE? I like pasta dishes. I like Spaghetti with bacon and Spaghetti with Thai anchovy, mainly. HOW DO YOU SPEND YOUR LEISURE TIME? Reading. I look for references or inspiration for new special dishes. YOU READ ABOUT FOOD IN YOUR FREE TIME? Sometimes, because we normally have a marketing plan for the year and I have to come up with special or seasonal dishes, so I need to study. DO YOU COOK AT HOME? Not really [smiles]. I normally buy from outside. But I cook sometimes when there's a weekend gathering with friends at home.GTo see an extended interview with Chef Torsit, visit gurubangkok.com
WHEN DID YOU GET INVOLVED WITH GREYHOUND CAFE? I've been the executive chef since the start - around 12 years now. The first branch is at The Emporium. WAS IT DIFFICULT TO COME UP WITH THE MENU? Most of the dishes were inspired by food that Greyhound Cafe's partners like. Food that they experienced on their travels or their friends' home cooking. We adapted these dishes or re-created them with our own recipes. WHAT WAS THE FIRST GREYHOUND CAFE DISH? Spaghetti with Thai anchovy. At the time I found it quite unusual and didn't think spaghetti and Thai anchovy could go well together. The dish came about when one of Greyhound Cafe's founders, Khun Bhanu Inkawat, went to Milan and tried Italian-style spaghetti with anchovies. He told me briefly about the ingredients, the taste and the presentation of the dish. So I recreated the menu with Thai anchovy and added some local ingredients like dried chilli, peppercorns and sweet basil. I experimented with about 10 recipes until we got Greyhound Cafe's own signature.
HOW LONG DID THE TASTING TAKE WHEN YOU DESIGNED THE MENU? Before we got each dish, we had to try about 10 recipes.When the restaurant first opened, we had around 60 dishes. So we'd tried hundreds of dishes [smiles]. It took about a month for the tasting at first. DOES MENU DESIGN ALSO INVOLVE MARKETING? The marketing department gives me a promotional plan such as the current "Italian Feast". For this promotion I came up with new dishes using Italian sausage. Because most Thais might not be familiar with Italian sausage, I needed to come up with dishes that sell, that suit Thai and foreign palates. DO YOU ALSO HAVE TO TRAIN EVERY SINGLE CHEF? Yes, because each one has a different background. New chefs need one month of training. I train the head chef of each branch as well as the assistants. So that's around 200 people. WHAT'S YOUR FAVOURITE DISH AT THE CAFE? I like pasta dishes. I like Spaghetti with bacon and Spaghetti with Thai anchovy, mainly. HOW DO YOU SPEND YOUR LEISURE TIME? Reading. I look for references or inspiration for new special dishes. YOU READ ABOUT FOOD IN YOUR FREE TIME? Sometimes, because we normally have a marketing plan for the year and I have to come up with special or seasonal dishes, so I need to study. DO YOU COOK AT HOME? Not really [smiles]. I normally buy from outside. But I cook sometimes when there's a weekend gathering with friends at home.GTo see an extended interview with Chef Torsit, visit gurubangkok.com
Monday, September 7, 2009
NESTLE TO PROFIT FROM CHINA MILK SCANDAL
Nestle, the world's largest food company, says sales growth in China may double to 20 per cent this year as it takes market share from rivals affected by last year's tainted - milk scandal.
"We have gained market share, all our businesses, our branding is stronger and we had greater market recognition," Patrice Bula, chairman and chief executive officer of Nestle (China), said in an interview in Shanghai. "In the milk crisis, we were not part of it, we're not directly affected by it because all our products are safe."
Milk tainted with melamine caused the deaths of at least six babies and sickened almost 300,000 other children in China last year. Government tests found the toxic chemical, used in making plastics, in the products of 22 companies including China Mengniu Dairy, the nation's biggest liquid-milk producer.
"The made - in - China label is really damaging and a lot of Chinese consumers don't like it," Shaun Rein, managing director of China Market Research Group in Shanghai, said yesterday. "Nestle has the ability to increase market share, partly because everybody's fleeing the domestic producers."
Mengniu posted a 949-million yuan (Bt4.87 billion) net loss last year as a result of the scandal. Company profit rose 29 per cent to 936 million yuan the previous year.
Government support has helped the Chinese dairy industry increase consumption and industry sales are now equal to about 90 per cent of the level before the scandal, Bula said.
Switzerland-based Nestle operates 21 factories in China and sells products including Nescafe instant coffee and Kit Kat chocolate wafer bars. Sales in China, Hong Kong and Taiwan rose 10 per cent last year to 2.23 billion Swiss francs (Bt72 billion), 2 per cent of global revenue, according to the company's website.
The food and beverage maker aims to introduces" to accelerate sales growth in the fourth quarter, Bula said. Nestle's coffee, bouillon, milk and ice cream are among its best-selling products in China, Bula added.
"The industry is at a stage of restructuring, where we are beginning to see which are the good companies that produce good quality products," said Rong Yaozhong, general manager of Shanghai Totle Food, Nestle's venture partner for Chicken bouillon.
"A lot of companies will imp rive the quality of their products while those that fail to meet set standards will be shut."
"We have gained market share, all our businesses, our branding is stronger and we had greater market recognition," Patrice Bula, chairman and chief executive officer of Nestle (China), said in an interview in Shanghai. "In the milk crisis, we were not part of it, we're not directly affected by it because all our products are safe."
Milk tainted with melamine caused the deaths of at least six babies and sickened almost 300,000 other children in China last year. Government tests found the toxic chemical, used in making plastics, in the products of 22 companies including China Mengniu Dairy, the nation's biggest liquid-milk producer.
"The made - in - China label is really damaging and a lot of Chinese consumers don't like it," Shaun Rein, managing director of China Market Research Group in Shanghai, said yesterday. "Nestle has the ability to increase market share, partly because everybody's fleeing the domestic producers."
Mengniu posted a 949-million yuan (Bt4.87 billion) net loss last year as a result of the scandal. Company profit rose 29 per cent to 936 million yuan the previous year.
Government support has helped the Chinese dairy industry increase consumption and industry sales are now equal to about 90 per cent of the level before the scandal, Bula said.
Switzerland-based Nestle operates 21 factories in China and sells products including Nescafe instant coffee and Kit Kat chocolate wafer bars. Sales in China, Hong Kong and Taiwan rose 10 per cent last year to 2.23 billion Swiss francs (Bt72 billion), 2 per cent of global revenue, according to the company's website.
The food and beverage maker aims to introduces" to accelerate sales growth in the fourth quarter, Bula said. Nestle's coffee, bouillon, milk and ice cream are among its best-selling products in China, Bula added.
"The industry is at a stage of restructuring, where we are beginning to see which are the good companies that produce good quality products," said Rong Yaozhong, general manager of Shanghai Totle Food, Nestle's venture partner for Chicken bouillon.
"A lot of companies will imp rive the quality of their products while those that fail to meet set standards will be shut."
Sunday, September 6, 2009
COCA-COLA CEO POPS INTO THAILAND TO DISCUSS GROWTH STRATEGY
Coca-Cola USA chairman and CEO Muhtar Kent yesterday met with local bottling partners to map growth strategy.
He expressed optimism about the Thai market, saying the company's business in the Kingdom had the potential to double in size.
Kent was on a two-day visit to Thailand, during which he met with the leadership of the company's local bottling partners - Thai Namthip and Haad Thip - to discuss growth strategies for the local beverage market.
The visit was timed to coincide with celebrations for the 50th anniversary of the establishment of Coca-Cola bottling partner Thai Namthip.
Kent, who lived in Thailand as a child, said: "The purpose of my visit is to affirm to the team in Thailand our commitment to Thailand, our confidence in the future of the Thai economy and our belief in the considerable potential of the Thai market. We have enjoyed a strong partnership over many years with our local Thai bottlers and know that the key to further success in this market lies in understanding and best serving the rapidly evolving needs of Thai consumers, customers and the communities in which we operate."
The Coca-Cola system in the Kingdom consists of Coca-Cola (Thailand), Thai Namthip and Haad Thip. Haad Thip serves the 14 southern provinces, while Thai Namthip serves the rest of Thailand.
During his visit, Kent paid a courtesy call on Prime Minister Abhisit Vejjajiva at Government House and met with the leadership of one of the Coca-Cola Foundation Thailand's main corporate-social-responsibility partners.
He also visited stores and markets in the greater Bangkok area and held discussions with a group of the Coca-Cola system's Thai female business leaders. The latter activity was part of Coca-Cola's global initiative, led by Kent, to accelerate the recruitment, development and advancement of female talent in Coca-Cola offices around the world.
Coca-Cola USA recently announced it had achieved growth in volume and value share worldwide in non-alcoholic ready-to-drink beverages for the eighth consecutive quarter. The Pacific region, including Thailand, showed particularly strong growth.
He expressed optimism about the Thai market, saying the company's business in the Kingdom had the potential to double in size.
Kent was on a two-day visit to Thailand, during which he met with the leadership of the company's local bottling partners - Thai Namthip and Haad Thip - to discuss growth strategies for the local beverage market.
The visit was timed to coincide with celebrations for the 50th anniversary of the establishment of Coca-Cola bottling partner Thai Namthip.
Kent, who lived in Thailand as a child, said: "The purpose of my visit is to affirm to the team in Thailand our commitment to Thailand, our confidence in the future of the Thai economy and our belief in the considerable potential of the Thai market. We have enjoyed a strong partnership over many years with our local Thai bottlers and know that the key to further success in this market lies in understanding and best serving the rapidly evolving needs of Thai consumers, customers and the communities in which we operate."
The Coca-Cola system in the Kingdom consists of Coca-Cola (Thailand), Thai Namthip and Haad Thip. Haad Thip serves the 14 southern provinces, while Thai Namthip serves the rest of Thailand.
During his visit, Kent paid a courtesy call on Prime Minister Abhisit Vejjajiva at Government House and met with the leadership of one of the Coca-Cola Foundation Thailand's main corporate-social-responsibility partners.
He also visited stores and markets in the greater Bangkok area and held discussions with a group of the Coca-Cola system's Thai female business leaders. The latter activity was part of Coca-Cola's global initiative, led by Kent, to accelerate the recruitment, development and advancement of female talent in Coca-Cola offices around the world.
Coca-Cola USA recently announced it had achieved growth in volume and value share worldwide in non-alcoholic ready-to-drink beverages for the eighth consecutive quarter. The Pacific region, including Thailand, showed particularly strong growth.
Thursday, September 3, 2009
Coke to ramp up investment if taxes ease
The US soft-drink giant Coca-Cola Co has pledged to increase its local investments if taxes on the sector are eased.
Coca-Cola is set to ramp up annual investment from about one billion baht should the government revise its tax and price control structures, said Kiat Sittheeamorn, head of the Thailand Trade Representative office, quoting Coca-Cola chairman and CEO Muhtar Kent.
Mr Kent met Prime Minister Abhisit Vejjajiva yesterday.
The carbonated soft drink industry in Thailand is currently subject to a relatively tough regulatory system, as it encounters both excise tax and the Commerce Ministry's price watch list.
Soft drinks are categorised as a luxury product by the Finance Ministry, which subjects them to excise tax as high as 21%. The Commerce Ministry must also be informed before any price increase.
Mr Kiat said the American company saw existing measures as an unfair practice and a key obstacle for its investment expansion in Thailand.
Price controls on soft drinks are only enforced in some Asean countries including Cambodia, Vietnam, Laos and Thailand, said Mr Kent.
The premier yesterday promised to consider Coca-Cola's request and directed the TTR to study how to address the complaint.
Coca-Cola is set to ramp up annual investment from about one billion baht should the government revise its tax and price control structures, said Kiat Sittheeamorn, head of the Thailand Trade Representative office, quoting Coca-Cola chairman and CEO Muhtar Kent.
Mr Kent met Prime Minister Abhisit Vejjajiva yesterday.
The carbonated soft drink industry in Thailand is currently subject to a relatively tough regulatory system, as it encounters both excise tax and the Commerce Ministry's price watch list.
Soft drinks are categorised as a luxury product by the Finance Ministry, which subjects them to excise tax as high as 21%. The Commerce Ministry must also be informed before any price increase.
Mr Kiat said the American company saw existing measures as an unfair practice and a key obstacle for its investment expansion in Thailand.
Price controls on soft drinks are only enforced in some Asean countries including Cambodia, Vietnam, Laos and Thailand, said Mr Kent.
The premier yesterday promised to consider Coca-Cola's request and directed the TTR to study how to address the complaint.
Coca-Cola adds fizz to coconut water
The soft-drink giant Coca-Cola Co has taken a minority stake in a coconut water company, continuing its move into juices and teas as consumers spurn soft drinks for health and cost reasons.
The Atlanta-based maker of Coke and Sprite and Zico Beverages LLC announced the investment on Tuesday.Coca-Cola declined to say howmuch its investment was worth, other than to say it was a stake of less than 20% in the company.
Hermosa Beach, California-based Zico said in a statement that it has received a $15 million investment from partners including Coca-Cola, beverage entrepreneurs, distributors, celebrities and others. So Coca-Cola's stake was worth less than that.
The move means another major drink maker is eyeing coconut water as it looks to boost sales.
Last month PepsiCo Inc announced it was buying Brazil's biggest coconut water company, Amacoco Nordeste Ltda and Amacoco Sudeste Ltda. Terms of the deal were not disclosed.
Sales of soft drinks have been falling in recent years as consumers seek out healthier juices and teas and limit their purchases to save money.
Coconut water -the fat-free,potassium-rich liquid inside young, green coconuts - is popular in other countries and just starting to catch on in the US According to a report from Merrill Lynch,sales in Brazil are worth more than $300 million a year, while sales in the US are about one-tenth of that.
Coconut water is not to be confused with coconut milk, the liquid that comes from pressed coconut meat.
"The product has long-term potential in the US because it has several attributes many consumers are looking for now in beverages," said John Sicher, editor of the trade publication Beverage Digest ."The drink is relatively low in calories,natural, new and functional - meaning it provides a purpose to consumers," he said.
In this case, some consumers consider it a natural sports drink. Given the potential for the product, Sicher said it "makes sense for the big soft drink makers to invest in the category.
"The beverage companies need to innovate and have new kinds of products and the products need to appeal to what consumers want today," he said."I think that coconut water, it's too early to tell,but it does have some potential."
In April, Coca-Cola said it would buy a stake of less than 20% in British fruit and smoothie drinks maker Innocent Drinks worth ฃ30 million, or about $44 million at the time the deal was announced.
This winter, the company saw a setback from the Chinese government's blocking of its proposed $2.5 billion purchase of Huiyuan Juice Group Ltd because of monopoly concerns.
Now the company wants to get into the coconut water business.
"It's an exciting new category and an exciting new brand in the category,"said Coca-Cola spokesman Scott Williamson.
Zico, a privately held company, was founded in 2004. The company did not immediately return a request for sales figures.
The line of Zico Pure Premium Coconut Water, including flavours like mango and passion fruit, is sold in gourmet grocers, natural food stores, yoga studios and other locations.
The Atlanta-based maker of Coke and Sprite and Zico Beverages LLC announced the investment on Tuesday.Coca-Cola declined to say howmuch its investment was worth, other than to say it was a stake of less than 20% in the company.
Hermosa Beach, California-based Zico said in a statement that it has received a $15 million investment from partners including Coca-Cola, beverage entrepreneurs, distributors, celebrities and others. So Coca-Cola's stake was worth less than that.
The move means another major drink maker is eyeing coconut water as it looks to boost sales.
Last month PepsiCo Inc announced it was buying Brazil's biggest coconut water company, Amacoco Nordeste Ltda and Amacoco Sudeste Ltda. Terms of the deal were not disclosed.
Sales of soft drinks have been falling in recent years as consumers seek out healthier juices and teas and limit their purchases to save money.
Coconut water -the fat-free,potassium-rich liquid inside young, green coconuts - is popular in other countries and just starting to catch on in the US According to a report from Merrill Lynch,sales in Brazil are worth more than $300 million a year, while sales in the US are about one-tenth of that.
Coconut water is not to be confused with coconut milk, the liquid that comes from pressed coconut meat.
"The product has long-term potential in the US because it has several attributes many consumers are looking for now in beverages," said John Sicher, editor of the trade publication Beverage Digest ."The drink is relatively low in calories,natural, new and functional - meaning it provides a purpose to consumers," he said.
In this case, some consumers consider it a natural sports drink. Given the potential for the product, Sicher said it "makes sense for the big soft drink makers to invest in the category.
"The beverage companies need to innovate and have new kinds of products and the products need to appeal to what consumers want today," he said."I think that coconut water, it's too early to tell,but it does have some potential."
In April, Coca-Cola said it would buy a stake of less than 20% in British fruit and smoothie drinks maker Innocent Drinks worth ฃ30 million, or about $44 million at the time the deal was announced.
This winter, the company saw a setback from the Chinese government's blocking of its proposed $2.5 billion purchase of Huiyuan Juice Group Ltd because of monopoly concerns.
Now the company wants to get into the coconut water business.
"It's an exciting new category and an exciting new brand in the category,"said Coca-Cola spokesman Scott Williamson.
Zico, a privately held company, was founded in 2004. The company did not immediately return a request for sales figures.
The line of Zico Pure Premium Coconut Water, including flavours like mango and passion fruit, is sold in gourmet grocers, natural food stores, yoga studios and other locations.
Thursday, August 27, 2009
HARD TECHNOLOGY NEEDS SOFT TOUCH
Papon Ratanachaikanont, deputy group chief commercial officer at True, explains the "retailisation" movement being championed at Thailand's only fully integrated telecommunitations and media company to The Nation's Pichaya Changsorn.
About three years ago, when Papon Ratanachaikanont proposed to True's board of directors that the company set up coffee outlets, he was stunned by a question from one board member who asked bluntly: "Who are you?"
Having just left the local unit of auto-maker Mazda to joining the telecom conglomerate, Papon had yet to prove himself.
However, after some intense debate, the board approved Papon's plan, which he now admits was intended to be no more than a "marketing gimmick."
"That's how savvy our board was. They approved a budget of more than Bt100 million and ordered me to return the money within three years," he said.
The entrepreneurial task was a big challenge. Papon himself had not expected True to pursue the business. "We first approached Starbucks for a partnership, but they said they did not know us," he said.
Today, True Coffee has paid back the original investment and is a profitable enterprise, Papon said.
As a vote of confidence and part of the group's "convergence" business policy, the parent company in March assigned Papon to take care of all of the group's retailing units and customer service points, totalling nearly 400 outlets, and unit them. These include True Shops, handling fixed-line telephone and Internet business, the outlets of cellular-phone business True Move, customer-service points for cable-TV unit True Vision, True Coffee and 167 new iPhone kiosks established over the past 45 days under Papon's direction in big discount stores and retail complexes, such as Tesco Lotus.
The physical merger of True'e retail outlets is now complete, but there remains a lot of back-office work to be done, and one of the most challenging areas is people management. Papon, who was earlier responsible for True Coffee, with fewer than 40 outlets and a combined staff of 160, is now managing nearly 400 group outlets employing 2,500 people.
But why did he go for coffee in the first place?
Papon said he believed in the "retailisation" trend now seen around the world. Technology is a "hard side" of the business. People are unable actually to feel and touch it, so it needs an "aesthetic" feature like coffee to merge into it.
"I began with a stark contrast - coffee and technology - but people liked it. A 'soft touch' is important, because it gives an aesthetic dimension to people's communications with True," he said.
"In the previous environment, customers felt like they owed us, because they came in with the sole purpose of paying telecom bills. There was no way to improve customer touch points."
In terms of the company's bottom line, True shops are now no longer a pure cost, accepted in the interests of earining income. Coffee and bakery sales have softened this status.
A new True shop recently opened in Central Chon Buri, the first outlet to merge coffee and other services from day one. Up to 100 True shops will soon incorporate a full coffee-store format, while the rest might have self-service coffee sales or other 'soft-side' features, Papon said.
"It's a reverse psychology. Consumers would not be able to find us if we 'converged' without all of the physical presences," Papon said, referring to True's "convergence lifestyle" business philolophy of cross-selling and cross-marketing its Internet-access, cable-TV and wi wired and wireless telephone-network service.
A longer-term goal is to transform all of True's physical outlets into "third-generation destinations" and lifestyle centres for consumers, he said.
About three years ago, when Papon Ratanachaikanont proposed to True's board of directors that the company set up coffee outlets, he was stunned by a question from one board member who asked bluntly: "Who are you?"
Having just left the local unit of auto-maker Mazda to joining the telecom conglomerate, Papon had yet to prove himself.
However, after some intense debate, the board approved Papon's plan, which he now admits was intended to be no more than a "marketing gimmick."
"That's how savvy our board was. They approved a budget of more than Bt100 million and ordered me to return the money within three years," he said.
The entrepreneurial task was a big challenge. Papon himself had not expected True to pursue the business. "We first approached Starbucks for a partnership, but they said they did not know us," he said.
Today, True Coffee has paid back the original investment and is a profitable enterprise, Papon said.
As a vote of confidence and part of the group's "convergence" business policy, the parent company in March assigned Papon to take care of all of the group's retailing units and customer service points, totalling nearly 400 outlets, and unit them. These include True Shops, handling fixed-line telephone and Internet business, the outlets of cellular-phone business True Move, customer-service points for cable-TV unit True Vision, True Coffee and 167 new iPhone kiosks established over the past 45 days under Papon's direction in big discount stores and retail complexes, such as Tesco Lotus.
The physical merger of True'e retail outlets is now complete, but there remains a lot of back-office work to be done, and one of the most challenging areas is people management. Papon, who was earlier responsible for True Coffee, with fewer than 40 outlets and a combined staff of 160, is now managing nearly 400 group outlets employing 2,500 people.
But why did he go for coffee in the first place?
Papon said he believed in the "retailisation" trend now seen around the world. Technology is a "hard side" of the business. People are unable actually to feel and touch it, so it needs an "aesthetic" feature like coffee to merge into it.
"I began with a stark contrast - coffee and technology - but people liked it. A 'soft touch' is important, because it gives an aesthetic dimension to people's communications with True," he said.
"In the previous environment, customers felt like they owed us, because they came in with the sole purpose of paying telecom bills. There was no way to improve customer touch points."
In terms of the company's bottom line, True shops are now no longer a pure cost, accepted in the interests of earining income. Coffee and bakery sales have softened this status.
A new True shop recently opened in Central Chon Buri, the first outlet to merge coffee and other services from day one. Up to 100 True shops will soon incorporate a full coffee-store format, while the rest might have self-service coffee sales or other 'soft-side' features, Papon said.
"It's a reverse psychology. Consumers would not be able to find us if we 'converged' without all of the physical presences," Papon said, referring to True's "convergence lifestyle" business philolophy of cross-selling and cross-marketing its Internet-access, cable-TV and wi wired and wireless telephone-network service.
A longer-term goal is to transform all of True's physical outlets into "third-generation destinations" and lifestyle centres for consumers, he said.
Guidelines not so sweet for soda makers
The American Heart Association's recommendation on Monday to cut back dramatically on sugar may be a blow or opportunity for soft drink makers, who have been accused of helping fuel the US obesity epidemic.
Hurt by an ailing economy and expanding waistlines, consumers have cut back on soft drinks. After years of growth, US carbonated soft drink sales by volume fell for the first time in 2005, and the decline has accelerated each year since.
Volumes fell 3% last year, the biggest drop since at least the early 1980s,Beverage Digest , a US-based industry publication, reported in March.
The AHA's new guidelines say women should eat no more than 100 calories of added sugar per day, or six teaspoons (25 grams), while most men should keep it to just 150 calories or nine teaspoons (37.5 grams).
That's far below the 22 teaspoons (90 grams) or 355 calories of added sugar consumed by the average American each day, according to a 2004 government survey.
The AHA also singled out soft drinks as the top source of "discretionary"sugar calories.
Edward Jones analyst Jack Russo said the new guidelines could give some consumers sticker shock in the short term but also might encourage PepsiCo Inc and Coca-Cola Co to focus even more on developing healthier options.
"In some crazy way, even if this gains some groundswell, these two companies are pretty quick to have a Plan B ready and they could actually develop some new products, even on the soft drink side, that could be touted as healthier and could improve their businesses," he said.
Russo cited McDonald's Corp as an example, saying the fast-food chain has had success with healthier menu items, such as salads and apple dippers,after its menu was criticised by health activists."As we continue to morph into more health and wellness issues,this is going to be a recurring focus.The quicker these companies are to react to this the better."
He said both companies are developing lower-calorie drinks, such as those made with a new natural, nocalorie sweetener derived from the stevia plant.
Coke, PepsiCo and other soft drink makers have seized upon the growing move toward low-calorie products, expanding in recent years their offerings of diet sodas, bottled waters and other healthier drinks.
"The industry has been talking about the need to consume regular soft drinks in moderation," said Beverage Digest editor John Sicher, who predicted that the new guidelines would not be a big blow for soft drink firms.
Currently, diet sodas account for about 30% of all carbonated soft drink sales, with full-calorie sodas making up 70%, according to Beverage Digest .Still, the findings, combined with high health costs linked with obesity,may renew interest in a soft drink tax,a policy favoured by Dr Thomas Frieden, director of the US Centres for Disease Control and Prevention, but not officially sanctioned by the Obama administration.
Frieden said during a news conference last month that soda and sugarsweetened beverages "play a particular role in the obesity epidemic," noting that Americans consume an extra 150 calories more per day in sugarsweetened beverages than two to three decades ago.
He said adding a tax to soft drinks might curb consumption. Obesityrelated diseases account for nearly 10%of all medical spending in the United States, or an estimated $147 billion a year, according to a CDC-sponsored study released last month.
More than 26% of Americans are obese, which means they have a body mass index of 30 or higher. BMI is equal to weight in kilograms divided by height in meters squared. A person 5 feet 5 inches tall (165 cm) becomes obese at 180 pounds (82 kg).
Hurt by an ailing economy and expanding waistlines, consumers have cut back on soft drinks. After years of growth, US carbonated soft drink sales by volume fell for the first time in 2005, and the decline has accelerated each year since.
Volumes fell 3% last year, the biggest drop since at least the early 1980s,Beverage Digest , a US-based industry publication, reported in March.
The AHA's new guidelines say women should eat no more than 100 calories of added sugar per day, or six teaspoons (25 grams), while most men should keep it to just 150 calories or nine teaspoons (37.5 grams).
That's far below the 22 teaspoons (90 grams) or 355 calories of added sugar consumed by the average American each day, according to a 2004 government survey.
The AHA also singled out soft drinks as the top source of "discretionary"sugar calories.
Edward Jones analyst Jack Russo said the new guidelines could give some consumers sticker shock in the short term but also might encourage PepsiCo Inc and Coca-Cola Co to focus even more on developing healthier options.
"In some crazy way, even if this gains some groundswell, these two companies are pretty quick to have a Plan B ready and they could actually develop some new products, even on the soft drink side, that could be touted as healthier and could improve their businesses," he said.
Russo cited McDonald's Corp as an example, saying the fast-food chain has had success with healthier menu items, such as salads and apple dippers,after its menu was criticised by health activists."As we continue to morph into more health and wellness issues,this is going to be a recurring focus.The quicker these companies are to react to this the better."
He said both companies are developing lower-calorie drinks, such as those made with a new natural, nocalorie sweetener derived from the stevia plant.
Coke, PepsiCo and other soft drink makers have seized upon the growing move toward low-calorie products, expanding in recent years their offerings of diet sodas, bottled waters and other healthier drinks.
"The industry has been talking about the need to consume regular soft drinks in moderation," said Beverage Digest editor John Sicher, who predicted that the new guidelines would not be a big blow for soft drink firms.
Currently, diet sodas account for about 30% of all carbonated soft drink sales, with full-calorie sodas making up 70%, according to Beverage Digest .Still, the findings, combined with high health costs linked with obesity,may renew interest in a soft drink tax,a policy favoured by Dr Thomas Frieden, director of the US Centres for Disease Control and Prevention, but not officially sanctioned by the Obama administration.
Frieden said during a news conference last month that soda and sugarsweetened beverages "play a particular role in the obesity epidemic," noting that Americans consume an extra 150 calories more per day in sugarsweetened beverages than two to three decades ago.
He said adding a tax to soft drinks might curb consumption. Obesityrelated diseases account for nearly 10%of all medical spending in the United States, or an estimated $147 billion a year, according to a CDC-sponsored study released last month.
More than 26% of Americans are obese, which means they have a body mass index of 30 or higher. BMI is equal to weight in kilograms divided by height in meters squared. A person 5 feet 5 inches tall (165 cm) becomes obese at 180 pounds (82 kg).
SAY ALOHA TO OHANA, AN AROMATIC CAFE ON SUKHUMVIT 24
With the rise of Bangkok's cafe culture, trendy WiFi Internet spots and on-the-go lifestyles means that, when we do stop for refreshments, we're likely to want something unique of high quality or perhaps a healthy or a tasty light bite.
The Ohana Cafe offers a friendly environment with freshly brewed coffee, tea, shakes and smoothies and unforgettable, mouth-watering desserts that are delicately composed with a personal touch.
The Hawaiian word ohana means "family", which best describes the homely atmosphere of the cafe and you certainly don't have to be a coffee connoisseur to recognise the good coffee you're served here!
Beans carefully selected from Hawaii, Colombia, Kenya, Bfazil and northern Thailand are roasted in a boutique roaster en route to becoming creative delights like the signature Ice Expresso Latte.
Costing Bt90, it's especially for people who revel in relaxing moments.
The pasta set menu for Bt200 includes a choice of spaghetti Alla Bolognese, fettucini alfredo, angel-hair pasta in tomato sauce or futtucini with mushroom and chicken cream suace. These come with soup0, salad and dessert.
Then there's a selection of snadwiches and panini. Try the parma ham sandwich with rocket and tomato and the salami and provolone cheese panini, each Bt240.
Other recommended desserts are the chocolate Mauna Loa for Bt200 and the vanilla a waffle with fresh strawberry cram and vanilla ice cream for Bt150, and there are more homemade pastries and croissants available.
The cafe has a small library of travel books, cookbooks and lively magazines, making these and even more attractive sport for those seeking a refreshing escape from the daily grind.
>> SWEET!
- The Ohana Cafe is at 50/4 Sukhumvit Soi 24 and open daily form 9 to 9.
- Call (02) 661 1930 or visit www.Ohana.co.th.
The Ohana Cafe offers a friendly environment with freshly brewed coffee, tea, shakes and smoothies and unforgettable, mouth-watering desserts that are delicately composed with a personal touch.
The Hawaiian word ohana means "family", which best describes the homely atmosphere of the cafe and you certainly don't have to be a coffee connoisseur to recognise the good coffee you're served here!
Beans carefully selected from Hawaii, Colombia, Kenya, Bfazil and northern Thailand are roasted in a boutique roaster en route to becoming creative delights like the signature Ice Expresso Latte.
Costing Bt90, it's especially for people who revel in relaxing moments.
The pasta set menu for Bt200 includes a choice of spaghetti Alla Bolognese, fettucini alfredo, angel-hair pasta in tomato sauce or futtucini with mushroom and chicken cream suace. These come with soup0, salad and dessert.
Then there's a selection of snadwiches and panini. Try the parma ham sandwich with rocket and tomato and the salami and provolone cheese panini, each Bt240.
Other recommended desserts are the chocolate Mauna Loa for Bt200 and the vanilla a waffle with fresh strawberry cram and vanilla ice cream for Bt150, and there are more homemade pastries and croissants available.
The cafe has a small library of travel books, cookbooks and lively magazines, making these and even more attractive sport for those seeking a refreshing escape from the daily grind.
>> SWEET!
- The Ohana Cafe is at 50/4 Sukhumvit Soi 24 and open daily form 9 to 9.
- Call (02) 661 1930 or visit www.Ohana.co.th.
Oishi H1 profits surge 51%
Net profit for Oishi Group in the first half of this year increased 51% year-onyear from 282 million baht to 426 million baht, the highest in five years.
The company reported total sales of 3.42 billion baht, up 23% from the first half of last year. Of the total revenue,1.55 billion came from the food business and the remaining 1.87 billion came from beverages.
President Tan Passakornnatee said its net profit increased beyond its average annual growth of 20-30% because it had lower raw material costs after outlet expansion.
Japanese food has been popular among Thais for several years, and the company hopes to cash in on the craze by offering several Japanese food brands to the market and opening new outlets upcountry.
"We will open more shabushi outlets upcountry to test the market response,and if we get good feedback, we will open Oishi buffet restaurants," he said.
Oishi Group operated 97 Japanese restaurant outlets last year, a number that will rise to 109 this year. The additional outlets include Kazokutei, a new Japanese food brand, at Central Pinklao and Seri Centre on Srinakarin Road.
The company spent 100 million baht on its marketing budget to celebrate its 10th anniversary in the remaining five months of the year.
Oishi plans to spend 200 million baht to open 20 new outlets next year, bringing the total to 129. Its expansion next year will focus on two new food brands including Maido Ookini, cafeteria-style Japanese food, and Kazokutei.
The aggressive expansion should help raise the sales proportion of food to 50%, up from 45% now. Sales are expected to grow by 10% to 7.2 billion baht.
Shares of Oishi closed on the Stock Exchange of Thailand at 40.25 baht, up 75 satang, in trade worth 210,039 baht.
The company reported total sales of 3.42 billion baht, up 23% from the first half of last year. Of the total revenue,1.55 billion came from the food business and the remaining 1.87 billion came from beverages.
President Tan Passakornnatee said its net profit increased beyond its average annual growth of 20-30% because it had lower raw material costs after outlet expansion.
Japanese food has been popular among Thais for several years, and the company hopes to cash in on the craze by offering several Japanese food brands to the market and opening new outlets upcountry.
"We will open more shabushi outlets upcountry to test the market response,and if we get good feedback, we will open Oishi buffet restaurants," he said.
Oishi Group operated 97 Japanese restaurant outlets last year, a number that will rise to 109 this year. The additional outlets include Kazokutei, a new Japanese food brand, at Central Pinklao and Seri Centre on Srinakarin Road.
The company spent 100 million baht on its marketing budget to celebrate its 10th anniversary in the remaining five months of the year.
Oishi plans to spend 200 million baht to open 20 new outlets next year, bringing the total to 129. Its expansion next year will focus on two new food brands including Maido Ookini, cafeteria-style Japanese food, and Kazokutei.
The aggressive expansion should help raise the sales proportion of food to 50%, up from 45% now. Sales are expected to grow by 10% to 7.2 billion baht.
Shares of Oishi closed on the Stock Exchange of Thailand at 40.25 baht, up 75 satang, in trade worth 210,039 baht.
JAPANESE RESTAURANTS' GROWTH NEXT PRIORITY
Oishi Group will spend next year expanding its Japanese restaurant chain after having built up its bottled green-tea business.
"We expect to increase the contribution of our Japanese restaurants to 50 per cent next year, up from 45 per cent currently, as a balance to the other half of beverage products, which are Oishi ready-to-drink green tea, Amino OK functional drinks and Coffio ready-to-drink coffee," CEO Tan Passakornnatee said yeaterday.
"The strategic move will help the group to diversify risks to many businesses," he said.
The group will allocate Bt200 million to open 20 outlets, mainly Shabushi and its other new concepts.
The Kazokutei soba and udon-noodle format will debut by mid-November in either the Central Pinklao or Seri Centre shopping mall, while maido Okini cafeteria was launched in midyear.
By year-end, Oishi expects to have 109 Japanese restaurants operating, up from 100 now. About five of the new branches will be Shabushi restaurants.
"We have already passed the fearful period of a deepening slump in the economy. I myself am confident and quite proactive about the future," he said.
The economy this quarter should be better than the first two quarters, driven by improving stock and realestate markets, subdued oil prices and higher employment, he said.
"We have seen a significant increase both in numbers of customers and their average spending by 3-4 per cent since the middle of this year," he said.
Oishi Group scored 51-per-cent growth in net profit in the first six months, the best performance in five years.
First-half sales zoomed 23 per cent to Bt3.4 billion over the same half last year, of which the Japanese restaurant business was up 24.5 per cent Bt1.55 billion and the beverage business up 21.1 per cent to Bt1.86 billion.
While the net profit of the Japanese restaurant business declined slightly by 0.7 per cent, the net profit of the beverage business, thanks mainly to Oishi green tea, skyrocketed 72.7 per cent.
"We enjoyed strong sales growth in the first six months of this year, which caused a dramatic decline in fixed costs, such as labour," he said.
Oishi Group commands 40 per cent of the Bt7-billion-plus Japanese restaurant market.
"We expect to increase the contribution of our Japanese restaurants to 50 per cent next year, up from 45 per cent currently, as a balance to the other half of beverage products, which are Oishi ready-to-drink green tea, Amino OK functional drinks and Coffio ready-to-drink coffee," CEO Tan Passakornnatee said yeaterday.
"The strategic move will help the group to diversify risks to many businesses," he said.
The group will allocate Bt200 million to open 20 outlets, mainly Shabushi and its other new concepts.
The Kazokutei soba and udon-noodle format will debut by mid-November in either the Central Pinklao or Seri Centre shopping mall, while maido Okini cafeteria was launched in midyear.
By year-end, Oishi expects to have 109 Japanese restaurants operating, up from 100 now. About five of the new branches will be Shabushi restaurants.
"We have already passed the fearful period of a deepening slump in the economy. I myself am confident and quite proactive about the future," he said.
The economy this quarter should be better than the first two quarters, driven by improving stock and realestate markets, subdued oil prices and higher employment, he said.
"We have seen a significant increase both in numbers of customers and their average spending by 3-4 per cent since the middle of this year," he said.
Oishi Group scored 51-per-cent growth in net profit in the first six months, the best performance in five years.
First-half sales zoomed 23 per cent to Bt3.4 billion over the same half last year, of which the Japanese restaurant business was up 24.5 per cent Bt1.55 billion and the beverage business up 21.1 per cent to Bt1.86 billion.
While the net profit of the Japanese restaurant business declined slightly by 0.7 per cent, the net profit of the beverage business, thanks mainly to Oishi green tea, skyrocketed 72.7 per cent.
"We enjoyed strong sales growth in the first six months of this year, which caused a dramatic decline in fixed costs, such as labour," he said.
Oishi Group commands 40 per cent of the Bt7-billion-plus Japanese restaurant market.
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