March 6, 2007

 

Thailand's Sea Value shifts its focus to the home market

 

 

Thai seafood manufacturer and exporter Sea Value has shifted its focus to domestic sales as the appreciation of the Thai baht brought down sales from its exports.

 

Sea Value expects sales of THB 500 million  (US$15.1 million) this year from its canned products marketed under the brand Super C Chef. Revenues are expected to hit THB 2 billion (US$60 million) by 2009, according to president Poj Aramwattananont.

 

The company is making the shift to balance its portfolio and also to reduce its business losses from the baht's appreciation, he said.

 

The company's sales revenue fell THB 2 billion (US$60 million) last year as the baht gained 14 percent against the US dollar.

 

Sea Value had sales revenue of Bt15 billion last year (US$454 million), all from exports. However, the company expects domestic revenue to make up 10 percent of total revenue in the next three years.

 

The company exports 70 percent of its canned tuna and sardines to other brands, while its own brand only constituted 30 percent of its exports.

 

The company this month launched its canned sardines in tomato sauce, counting on its strong growth potential. Demand for the product has grown an average of 10 percent to 15 percent a year in the Thai market.

 

Thailand's canned fish market was worth Bt3 billion (US$90 million) last year. Canned sardines make up two-thirds of the market, while mackerel and tuna took up 21 percent and 12 percent respectively. 

 

Sea Value expects to overtake current market leader Three Lady Cook in Thailand's canned fish market within three years. 

 

The company also plans to launch other canned sardine products that would help it rake in domestic sales of THB 500 million (US$15 million) this year, Poj said.

 

In addition, in the next 12 months, it will introduce up to 10 frozen and ready-to-eat products to the Thai market under the Super C Chef brand. That is expected to boost its domestic sales to THB 1 billion (US$30.3 million) next year.

 

Sea Value expects its revenue to reach THB 18 billion (US$545 million) this year, increasing to THB 22 billion (US$666 million) in 2008 and THB 25 billion (US$757.5 million) in 2009.