May 23, 2009

Thailand's CPF to focus on snacks and ready-to-eat products

Thailand's Charoen Pokphand Foods (CPF) is now focusing on snacks and ready-to-eat products due to a highly competitive market and unstable fresh food prices this year.

Senior vice president for marketing, Suphat Sritanatorn, said CPF would concentrate on snacks such as chicken nuggets and pork rolls and sell them in the rising number of 7-Eleven outlets.

About 60 percent of CPF's snacks and ready-to-eat products are distributed in 7-Eleven convenience stores, while the remainder is sold in CP Fresh Marts.

The market for ready-to-eat meals and snacks is very competitive this year, with competitors offering discounts of five to 10 percent, therefore CPF also plans to offer special promotions and launch a 360-degree marketing strategy to get closer to the consumers, Sritanatorn said.

He said the rise in sales of ready-to-eat meals and snacks could be attributed to changes in consumer lifestyles, and the company needs to provide a wider variety of products to cater to consumers of all ages.

CPF has invested heavily on the promotion of snacks and ready-to-eat meals, and second quarter sales volume in the segments should increase 10 percent on-year due to the offering of discounts, he said.

CPF currently holds 50 percent of the snacks market and 30 percent of the ready-to-eat meals market. The company expects the market share in each of the segments to increase by five per cent this year.