Strong baht steers Sea Value into domestic market
Sea Value presenters dance on stage at the company’s press conference yesterday.
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Seafood manufacturer and exporter Sea Value has entered the domestic market for the first time, after the strong baht hit its export income.
Through its brand Super C Chef, the company expects its canned products to achieve sales in Thailand of Bt500 million this year and Bt2 billion by 2009, according to president Poj Aramwattananont. "We have to expand our market from export to domestic to balance our portfolio and also reduce our business loss from the baht's appreciation," he said. "Our sales revenue dropped Bt2 billion last year due to the strengthening of the baht against the US dollar from Bt40 a year ago to Bt35." Sea Value had sales revenue of Bt15 billion last year, all from exports: 70 per cent from canned tuna and sardines produced for other brands and 30 per cent from canned tuna and sardines produced under its own brand. Poj said that canned sardines in tomato sauce under the Super C Chef brand would be its first product in the domestic market. It was launched yesterday and will be distributed nationwide by Sahapathanapibul. Demand for canned sardines in tomato sauce has strong growth averaging 10 per cent to 15 per cent per year, he added. The company believes its first domestic product will drive sales to meet their target this year. Thailand's canned fish market was worth Bt3 billion last year - sardines accounted for 67 per cent, mackerel 21 per cent and tuna 12 per cent. "We expect to be the market leader in the canned fish market within three years," Poj said. Currently, Three Lady Cook is the market leader. Sea Value also plans to launch two or three new canned sardine products that will help to generate domestic sales of Bt500 million this year, Poj said. In the next 12 months, it will introduce up to 10 frozen and ready-to-eat products to the Thai market under the Super C Chef brand. That is expected to boost its domestic sales to Bt1 billion next year and to Bt2 billion in 2009. "We expect our domestic revenue to be nearly 10 per cent of our total revenue in the next three years," Poj said. Sea Value expects its revenue to reach Bt18 billion this year, increasing to Bt22 billion in 2008 and Bt25 billion in 2009. Poj said demand for seafood products in the world market had shown strong growth. "The baht's appreciation has negatively impacted our business since last year, but now we know how to manage our business in the new economic environment. As a result, we believe that our business will grow to meet our targets this year and next year," he added. Somluck Srimalee The Nation
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