Despite billions of baht in sales revenue, Charoen Pokphand Foods (CPF) will be happy if the company achieves its average sales growth of 10 per cent this year.

The Kingdom's negative factors include political uncertainty, an economic and domestic consumption slowdown and a declining trend in international trade. These will affect the two company's sales.

CPF senior vice president Suphat Sritanatorn said the company was considering revising downward this year's sales-growth targets because of negative factors that occurred early this year.

"The company's average sales growth is [expected to be] no less than 10 per cent but the domestic consumption slowdown will hit its sales this year," he said.

According to a Thai Chamber of Commerce University study, domestic consumption accounts for 55 per cent of the country's gross domestic product. Domestic consumption is predicted to grow slightly, by 3.7-4.3 per cent this year.

This is an important factor when the company focuses more on domestic sales. But CPF's ready-to-eat products sales are targeted to grow by 15-20 per cent this year thanks to its brand-building strategy.

To achieve the goal, at least 20 to 30 new products will be launched under the CP brand this year, including appetisers, ready-to-eat products and cooked menus of seafood, pork and duck.

 "CPF will also increase our brand awareness in the global arena by increasing marketing promotion in various media, such as television, publishing and food kiosks in shopping centres," Suphat said.

The company introduced its products in Singapore and Hong Kong last year and will expand to other markets in Asia.

 Chutinant Bhirombhakdi, executive vice president and director of Singha Corp, said Singha beer sales were likewise expected to reach average growth of around 10 per cent.

However, the figure is still set to be higher than the overall beer-market, which grew only 4-6 per cent last year, he said.

 He added that the company was concerned mostly about how the continued violence in the South would affect domestic consumption.

 "The company expects to reach our average growth this year despite a predicted declining trend in the Kingdom's economy," he said, adding that expected positive factors are interest rate and oil price drops and strong economic growth in Thailand's key export markets, including Japan.

Oil prices on the world market have declined gradually in recent months from US$63 (Bt2,219)-$68 per barrel to $50-$55.

 Chutinant said the company would focus more this year on the domestic market rather than expanding exports. The strategy is to increase its local market share against competitors. Export markets include the US, the EU and Japan.

 Singha is the third most popular beer brand in Asian after Kirin and Tsingtao. Singha beer has been exported since the 1970s and is now distributed in 40 countries. The US is one of the largest export markets, taking about 20 per cent of the company's exports.

 In addition, the company will focus this year more on sports marketing to strengthen its brand awareness in global markets, Chutinant said, adding that a part of the plan is to promote Thai players in the international sports arena. The company will be an official sponsor for major sport events such as golf, tennis and the Asian Games. In addition, key players of those sports will become the company's presenters.

Petchanet Pratruangkrai

 The Nation