THAILAND

 
Producer of non-dairy creamer to expand production capacity in Samut Sakhon

Preserved Food Specialty Co (PFS), the producer of Coffee Dreamy non-dairy creamer, plans to expand production capacity at its factory in Samut Sakhon.
General Manager Panu Mahattanobol disclosed that PFS plans to invest Bt 500 million (US$15.6 million) to install new machines at its factory in Samut Sakhon in the 4th quarter of 2019. This will double its daily production capacity to 300 tonnes. The additional capacity will be used to make new non-dairy creamer products to serve the domestic and export markets, especially Taiwan.
The company also plans to invest Bt 300 million (US$9.37 million) to build an extraction facility for rice bran oil. The new factory will begin operations in 2020. “Non-dairy creamer is considered a product that is not good for health. Therefore, we will gradually improve the image of our non-dairy creamer with a new formula made from rice bran. This will be an alternative non-dairy creamer for health-conscious people,” said Panu.
Panu claimed that the Bt 6 billion (US$187.5 million) market for non-dairy creamer in Thailand has grown slowly over the past several years due to declining consumption of coffee at home and in the office. Consumers have also shifted to 3-in-1 instant coffee, while the price of coffee at cafes has declined to Bt 35-40 (US$1.09 – US$1.25) a cup. Nevertheless, sales of Coffee Dreamy have bucked the broader trend, with revenue this year expected to manage growth of 7% to Bt 750 million (US$23.43 million).
Panu said that PFS continues to grow as it sells 98% of its product to coffee shops, bubble tea chains and similar outlets. He added that the bubble tea market had slowed in the last few years, but it has revived again in 2018. A separate research by Allied Analytics estimated the global bubble tea market at Bt 65 billion (US$2.03 billion) and expects this value to grow to Bt 100 billion (US$3.12 billion) by 2023. Thailand market alone was valued at Bt 2 billion (US$62.5 million) in 2016.
As part of its expansion goal, PFS will also strengthen its sales in the modern trade channel while also tapping the bakery market and make food supplements to serve the medical channel. The company will also join with partners from Australia, South Africa and China to make ingredients for powdered baby formula for sale in both domestic and overseas markets.