Doi Kham Food Products Co, a Thai manufacturer and distributor of fruit juice and dried fruit has expanded its enterprise to enter Thailand’s 15-billion-baht ice cream market in an effort to counter the continued decline in fruit juice demand.
Chanannat Polpathapee, the company’s govt vp for gross sales and advertising, said the Thai fruit juice market, significantly within the middle to premium segments, has skilled a mean annual decrease of 5-10% over the past few years, amounting to 4.5 billion baht in 2022, down from approximately 10 billion baht a yr in the course of the earlier decade.
Polpathapee advised that the market is more doubtless to proceed declining due to consumers having a wider choice of drinks, particularly practical drinks, which offer numerous formats and flavours.
A collaboration with Wall’s ice cream two years ago led Doi Kham to resolve to supply its own ice cream, she said.
“We studied the ice cream enterprise for more than two years. The pandemic triggered our business plan to be postponed,” defined Polpathapee.
Pipatpong Israsena Na Ayudhya, the company’s president and chief government, famous that although the pandemic has affected many enterprise sectors, ice cream has not been considerably impacted.
Doi Kham launched three ice pops in the course of final month. Made from actual fruit at its Mae Chan manufacturing unit in Chiang Rai, these ice lotions feature environmentally friendly packaging. The company plans to introduce new merchandise in the second half of this year.
“Doi Kham Ice Pop is a niche product. It is an ambience ice cream that can be stored at regular temperatures, in distinction to conventional frozen ice cream. We want our ice cream merchandise to be a new various for generation Z and Y customers who seek contemporary, handy products,” Polpathapee said.
Billion is on the market at over 30 Doi Kham shops and 14 franchises, as properly as varied trendy retail chains, including Tops, Lotus’s, Big C, and Makro. It might be bought in 7-Eleven comfort stores from next month.
“ Prize will be our progress engine that may offset the declining fruit juice,” Polpathapee added.
Following a optimistic response to ice cream in China, South Korea, and Vietnam, the company participated in an international trade fair in Japan in March this yr to promote its Doi Kham Ice Pop, with the potential for exporting the product abroad this year.
The company anticipates gross sales of Doi Kham ice cream to succeed in 50 million baht this yr, with projections of 600-700 million baht over the following seven years, together with export revenues.
According to Polpathapee, because the fruit juice market continues to say no, the corporate will investigate opportunities inside new product classes that attraction to the youthful era in the course of the second half of this year.
Additionally, Doi Kham plans to broaden its enterprise into B2B channels, such as motels, restaurants, and catering and is conducting a feasibility research to launch a sister model for brand new merchandise that cater to all buyer existence..