In fact sales of the instant noodles were strong, but their consumption tends to go in the opposite direction to people's real preference. If consumers have more disposable income they eat instant noodles less often, but if they are short of cash they naturally turn to the affordable instant dish.

The instant-noodle market rose counter to the general market trend to enjoy double-digit growth in the first quarter for the second consecutive year.

The market, currently worth Bt10 billion, witnessed 13.9-per-cent growth.

Thai President Foods - maker of Mama instant noodles, the Greenmate beverage brand and producer of crispy breads, wafers and cookies - enjoyed a 14.53-per-cent sales increase to Bt1.38 billion for its instant noodles.

This resulted in the company gaining a 52-per-cent market share, according to director and president Pipat Paniangvait.

Across the whole market, cup noodles, which account for 4.4 per cent, experienced 27-per-cent growth, while sales of the company's Mama Cup grew by 45 per cent.

Consumers are tending to consume more instant noodles, which have average prices from Bt5 to Bt12.

Pipat said the overall market was expected to achieve another 10-per-cent growth this year.

"It usually grows just a few per cent a year in normal economic conditions," he said.

However, it is not all good news for instant-noodle manufacturers, as they are confronting increasing costs. The company itself experienced a Bt24-million profit reduction during the period.

Pipat said the price of wheat flour had started increasing late last year from Bt70-Bt80 per 22.5-kilogram sack to Bt320 today. Meanwhile, palm-oil prices have also increased to Bt30 per kg after the old price of Bt20 had been stable for three years.

Nevertheless, cost increases also have their good points, he said, as they will reduce the intensity of the current price war among producers. He said the economic downturn had resulted in consumers being more price-conscious, which had caused some competitors to dump their prices.

In terms of a business plan, Pipat said Thai President Foods had already launched a new flavour and would continue to launch others during the rest of the year.

For its other businesses, the company is spending six months testing the market potential of its soy milk brand Greenmate in Cambodia. If it succeeds there, the brand will seriously tackle the Thai market later. He said tax in Cambodia was lower than in Thailand, hence it tests its products there.

Thai President Foods will continue its investment plan. After buying a bakery in Rayong province last year, the company is planning to move bread-making machines from its plant in Sri Racha to the new facility, changes to which are expected to be finished next May.

At the same time, it intends to buy additional machinery to fill the empty space in the current plant.

The total allocated investment is Bt500 million.

It is also studying the possibility of building factories overseas, including Vietnam.

Thai President Foods is also adjusting its sales method, focusing on its "van sell" by changing from selling many products from one van to selling only Mama instant noodles from each vehicle.

It has already changed about 70 vans from its fleet of 100. The company expects its van sales to reach Bt1.5 million per month, from a current Bt1.2 million.

It also expects its overall sales to grow 15 per cent to about Bt7 billion this year.

Nitida Asawanipont

The Nation