DB Group debuts bakery venture with cheesecake
A third-generation member of the Tumwattana family is entering the food business with plans to introduce several Japanese cake and bakery brands to local consumers.
DB Group Co was set up recently by Dolnapa Tumwattana with 1 million baht in registered capital to operate cake, bakery and dessert businesses. Its first brand is LeTAO cheesecake.
Ms Dolnapa, the daughter of Noppadol Tumwattana, who handles the Body Glove fashion business in Thailand, and Khanchai Ongkamongkol, a dollmaker under the licensed brand Paul Frank, each hold an equal stake in the newly established company.
DB Group got the rights from KCC Inc to run LeTAO cheesecake outlets in Thailand.
Chuya Sakurada, general manager of the overseas marketing strategy department at KCC Inc, said Thailand is the third country for LeTAO’s expansion abroad after Taiwan and South Korea.
“We decided to expand our business into Thailand because there are a lot of Thai tourists visiting our cake shops in Japan. Over 10% of foreign tourists are Thais,” he said while in Bangkok yesterday.
After Thailand, KCC plans to expand its cheesecake business into Singapore and the Philippines next month via partnerships and will go it alone to establish a presence in the US next year.
KCC is a subsidiary of Kotobuki Spirits Co, which has over 40 brands of confectioneries and bakeries in Japan.
Ms Dolnapa, managing director of DB Group, said the company has seen continued growth in the Thai bakery business, particularly the cheesecake segment. Currently three LeTAO outlets are open in Bangkok, with the number expected to reach 5-6 within the next three years.
Prices of LeTAO cheesecake are set at 390-890 baht — about 200 baht higher than in Japan.
DB Group expects to generate 30 million baht in sales this year, a figure it expects to rise to 70 million over the next three years. Apart from takeaway shops, the company will open its bakery/cafes and bring over more new brands from Japan in the future.
Thailand’s bakery and cake industry was worth 22.3 billion baht last year, having grown 7% annually over the past five years.