King Group sets sights on neighbours’ middle classes
King Food Group Co, owned by the Mahagitsiri family, plans to penetrate the food market in Cambodia, Laos, Myanmar and Vietnam (CLMV) to cash in on rising demand from middle-income people in the region.
Ausanee Mahagitsiri, president of the group, the local operator of Krispy Kreme bakery chain, said it will hold talks with the owners of all bakery brands in its portfolio, including Krispy Kreme, Cinnabon, Bulgogi Brothers and Pie Face to seek the rights to operate bakery chains in the CLMV market.
“These countries are promising markets due to the rise of middle-class people and their lifestyles have rapidly changed to welcome more fast food and bakeries,” she said. The company is ready to branch out to the CLMV in the near future.
At home, it will double its investment to 400 million baht to open 22 branches under six bakery, food and juice brands this year. Of the total, about eight will be under Krispy Kreme, four Cinnabon, three Pie Face, five Jamba Juice and two International House of Pancake.
King Food recently got the rights to operate Jamba Juice, the top vegetable and fruit smoothie and juice brand from the US, and iHop, a famous American pancake restaurant chain, in Thailand.
The first branch of Jamba Juice was opened yesterday at Siam Paragon shopping complex with 15 seats and 20 employees. With a 10-year contract, the company plans to open 40-50 Jamba Juice branches in Thailand.
Mrs Ausanee said the company is interested in expanding into the fruit and veggie juice because the market is valued 200 billion baht and people are more concerned on health.
Jamba Juice has more than 896 retail locations globally. Of the total, 70 locations are outside the US, in countries such as South Korea, the Philippines, Taiwan, Indonesia, Thailand and United Arab Emirates. Jamba Juice in Thailand is the 70th branch outside the US market.
“We will put more effort to build brand awareness of Jamba Juice in Asia and continue to expand our business because people in this region respond well to Jamba Juice, a new alternative healthy drink,” said Dave Pace, chief executive of Jamba Inc.
Mrs Ausanee said Jamba Juice prices range between 110 to 180 baht.
The company says it will initially import fruits and vegetables, but will in future approach Jamba Inc to use Thai fruits and also export them to supply its network worldwide.
The company plans to open 4-5 Jamba Juice branches in Bangkok this year, aiming to gain 30 million baht sales this year.
With all expansion plans, King Food Group expects its sales to grow 40% to 1 billion baht by year-end.