Siam Food Services expands

Asia, Mideast tempt frozen goods supplier

Siam Food Services Ltd, the importer and distributor of frozen and chilled products under SET-listed Siam Makro Plc, looks set to expand into Asia and the Middle East as it bids to maintain sales growth.

According to general manager Preeyada Sripiboon, the expansion began in earnest after the company completed a transition process with Indoguna, a food service company in Singapore.

Siam Food Services, a wholly owned subsidiary of Siam Makro, the operator of the Makro cash-and-carry chain, entered into an agreement on Oct 31, 2016 to acquire an 80% stake in each of four food companies: Indoguna Singapore Pte, a listed firm on the Singapore Exchange; Indoguna Dubai LLC; Lordly Co Ltd; and Just Meat Co Ltd.

Lordly Co and Just Meat Co are listed on the Hong Kong Stock Exchange.

The combined acquisition cost for the four companies was S$118 million.

Under the plan focusing on five markets (Hong Kong, Singapore, Vietnam, Dubai, Cambodia), the company set up Food Service APME Co with registered capital of 3 billion baht to handle the expansion.

“The synergy between Siam Food Services and Indoguna will enhance the group’s business strength in Asia and the Middle East,” Ms Preeyada said. “We will share branding and information and also bring in products under the Indoguna portfolio to sell in Thailand.”

Founded 35 years ago, Siam Food Services specialises in the distribution of temperature-controlled and value-added international brands of high-quality meat, seafood, poultry, potatoes, dairy, pastries and ethnic food products to food service and professional customers.

The products imported from all around the globe include over 70 brands and 2,000 product items in seven categories.

Ms Preeyada said Thailand’s domestic food service business was not quite as good as expected in the first seven months of the year because of sluggish tourism.

“Food services that cater to tourismrelated business such as airlines and hotels are slowing down, while the number of new hotels also declined when compared with the past four years,” she said.

Siam Food Services sales reached US$207 million in 2018. Of the total, 30% of sales were from seafood products, 20% each from meat and dairy products and the remaining 30% from other categories.

‘‘ The synergy between Siam Food Services and Indoguna will enhance the group’s business strength in Asia and the Middle East.

PREEYADA SRIPIBOON

General manager, Siam Food Services