Wed, August 10, 2022

business

V Foods enhances 4.0 strategy with innovation hub 


V FOODS Corporation, a leading food and beverage manufacturer, has set up an innovation centre called V Foods Lab to support the company’s 4.0 strategy.

The focus of the strategy is the development of new innovation products that cater to today’s health-conscious consumers and their digital lifestyles.
The V Foods 4.0 strategy is in line with the government’s Thailand 4.0 police, which focuses on investing in people, technology and connectivity-based, resource-based, and intellectual infrastructure.
Apirak Kosayodhin, chairman and chief executive of V Foods, said that under the 4.0 strategy, the company would raise its competitive edge as driven by its ability to understand consumer behaviour trends.
He said the company would also network with outside partners such as creative agencies, universities and government offices to enhance consumer-insight surveys and new product development initiatives.
“We are working with Spicy H, a creative agency and a unit of Hakuhodo, which will provide consumer insights and consumption trends to the company for further product development. We are also working with local universities, including Chiang Mai University and Panyapiwat Institute of Management, in strategic cooperations to develop new production innovations,” Apirak said.
He said that through V Foods Lab the company aimed to launch between five and 10 innovative products every year.
“Under V Foods Lab, we will connect ourselves with consumer insights to understand their changing lifestyles. We plan to make our V Foods Lab an Asean innovation centre to develop new innovative products – not just for Thais but consumers in Asean,” he said. “Our products are already in Laos and Cambodia, and we plan to launch products into Myanmar this year.”
Apirak added that V Foods’ priority remained Thailand, which still showed great market potential for canned coffee consumption but the appeal was limited to Bangkok and other major urban cities.
He said that V Foods would also focus on business innovations through the introduction of new ideas, workflows, methodologies, services and products.
V Foods posted Bt200 million in revenue last year. The company is targeting Bt360 million in revenue this year, of which Bt160 million would be from ready-to-drink canned coffee products under the Dao Coffee brand.
The brand comprises Ice Classic Blend, Ice Long Black and Dao Max, the company’s latest canned coffee product and targeted at the mass-market segment.
The company’s portfolio is divided into two major business units, which are food and beverages. Major products in its food business include V Corn corn-based products, V Farm dehydrated fruits and V Kitchen ready-to-eat soup.
Apirak said that the overall canned coffee market in Thailand was worth Bt12 billion a years and grew about 5 per cent a year on average. About 95 per cent of the market is the mass-market segment, with an average retail price of about Bt13 per can.
“Almost 70 per cent of our canned coffee sales were from modern retailers, especially convenience store chains. This modern retail segment enjoys a higher growth rate of 11 per cent compared to the overall market growth, as driven by the greater demand of consumers for convenience,” he said.
 

Published : February 09, 2017

By :  KWANCHAI RUNGFAPAISARN THE NATION