March 30, 2004

Foremost To Invest 100 Million Baht To Modernize Production in Thailand

Foremost Friesland (Thailand) Co is intending to invest 100 million baht to modernize its two production facilities in Samrong and Lak Si in a bid to beef up production in the face of competition from non-dairy beverage.

Foremost managing director Ian Gearing said that even though beverages such as fruit juices and green tea were gaining increasing favour in the market, the company believed that dairy products still had good growth potential since health-conscious consumers were willing to spend money for more nutritious products.

Demand for UHT and pasteurised dairy products in particular was still rising steadily, he noted. "Per capita consumption of dairy products in Thailand is still low because major drinkers are children and teenagers."

The local unit of Netherlands-based Friesland Coberco Dairy Foods has invested money to upgrade machinery for its new ready-to-drink dairy products as well as increased its advertising and promotional budget for the year by 30%. Mr Gearing did not disclose the media budget.

As well, he said, the company has relaunched Foremost Calcimex, a high-calcium milk, this month, eyeing customers aged 22-45 years old.

The launch is the third phase of a repositioning under the concept "Nutrition for Vitality", which was announced last year. The company has also added Foremost Calcimex Green Tea to the high-calcium milk segment.

Marketing director Kaweemat Tangkiriphiman said the company spend several million baht on new packaging as well as a 30-second TV commercial starring actress Kedmanee "Pin" Wattanasin, starting on April 1.

The company expects sales of new Foremost Calcimex products will grow by 10% by the end of this year.

Overall sales of Foremost dairy products are expected to outpace the industry growth rate of 4-5 %. The market size was 20 billion baht last year.