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.
Friday, October 2, 2009
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.
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