Two firms dive into fish snacks
Sappe Plc and S. Khonkaen Foods Plc are branching out into seafood snacks as part of plans for long-term business growth.
Drinks maker Sappe plans to introduce the Zea Max brand of fish snacks by the third quarter, while S. Khonkaen will add seafood snacks to its existing range of pork snacks by year-end.
The snack segment is enticing given its estimated market value of 45 billion baht. The market has grown every year at an average 5% clip against bearish sales in other product categories such as drinks.
Moreover, the share of fish and seafood snacks is just 10% of the total snack market, with only two big players in fish snacks: Premier Marketing Co, the owner of the Taro brand, and Thai Union Group’s Fisho.
According to Worapong Kietdumrongwong, Sappe’s chief commercial officer, expansion into healthy snacks is part of the company’s strategy to expand the business in a sustainable manner through innovation and human resource development.
Zea Max, a grilled fish snack, will focus on the domestic market, while Chim Dii shrimp snacks will be introduced later this year for export only.
“Zea Max will be our growth driver this year and one of our four key drivers to make us grow our business sustainably in the long term,” Mr Worapong said, adding that the company expects 70 million baht in sales from Zea Max fish snacks this year.
Other key drivers are Moku Moku drink, Preaw instant coffee and Sappe Beauti drink.
In addition to the new products, the company plans to rejuvenate two existing brands, Sappe aloe vera drink and Preaw coffee, with a more modern look.
Sappe expects sales to reach 3 billion baht this year, up from last year’s 2.7 billion. Of the total, 68% was from exports and 32% from domestic sales.
S. Khonkaen plans to double sales to 5 billion baht within the next five years. To achieve the goal, the company will introduce non-pork snacks.
“It’s getting difficult to expand in porkbased snacks overseas because of the laws and trading conditions of each country,” said Jarunpoj Rujirasopon, chief operating officer for marketing and sales at S. Khonkaen Foods. “Currently we can market the Entree brand pork snack only in Hong Kong.”
Mr Jarunpoj is developing the company’s seafood-based products to attract young people who prefer healthy snacks.
The expectation is for the new product to launch by year-end.
Mr Jarunpoj said the company plans to introduce a refreshment programme for existing brands for the first time in 30 years.
The programme will take about a year and a half.