Malee Sampran expects to see lower growth

Unfavourable and unpredictable political and economic developments have forced Malee Sampran Co to lower the growth target for its fruit-juice sales this year from 35-40 per cent to 30 per cent.

Marketing plans for all of its fruit-juice products have been revised accordingly, including reducing the size of some events, adjusting event formats and delaying some activities until early next year.

However, this year's marketing budget will remain at Bt300 million, up 50 per cent from last year's Bt200 million.

Senior vice president Suwanna Chokdee-anand yesterday said growth in the entire fruit-juice market, with orange juice representing 35 per cent, dropped in the second quarter to only 10 per cent, from 16 per cent in the first quarter.

Meanwhile, Malee's sales grew 27 per cent in the first quarter and 25 per cent in the second.

The market in the second half of the year is expected to grow 10 per cent, which would bring the market for the full year to 8-10 per cent above last year's Bt7.5 billion.

Market expansion will be driven mainly by the middle segment, or 40-per-cent fruit juice, and the premium segment, or 100-per-cent fruit juice. So far this year, they have picked up 14 per cent and 12 per cent, respectively, because major players like Unif and Tipco launched several campaigns aimed at stimulating consumer spending.

The premium segment is worth Bt2.8 billion and the middle segment about Bt1 billion. The rest is the super-economy segment, which has shrunk 5 per cent.

In the first half Malee, relaunched its Malee Teen 40-per-cent fruit juice as Malee Juice Mix.

Yesterday, it launched its biggest marketing campaign for the second half, "Surprise Shopping, Bt1-Million Gold Buffet with Malee", to promote three new flavours - mandarin, tangerine and navel - for its 100-per-cent orange juice. The campaign's budget is Bt50 million.

The company will build awareness by staging roadshows in office buildings and business districts, where its main target group - modern, health-conscious women aged 25-40 - can be found.

Tipco is the leader in the premium segment, with a 27-per-cent share, following by Malee and Unif, each with a 16-per-cent share. The rest belongs to small players.

Malee expects its efforts to increase consumption to help boost its market share 3 per cent.

Malee's sales grew 17 per cent last year, but Suwanna declined to reveal exact figures.