Monday 9 April 2012

MOCCONA REAFFIRMS THAI COMMITMENT


Andi Chandra (second from right) with actor Louis Scott, the Moccona brand ambassador, at a briefing yesterday.

Sara Lee Coffee & Tea (Thailand) Ltd, the producer of Moccona instant coffee, insists it will continue its investment in Thailand by resuming coffee production at Navanakorn Industrial Estate in Pathum Thani.

General manager Andi Chandra said the company resumed its Moccona production last month after the factory was shut down since October due to flooding.



Instant coffee production is expected to run at full capacity for the next three to four months. The company still imports some coffee products from Europe and Asia to serve the Thai market, just as during the floods.

Mr Chandra did not disclose Moccona asset and sales losses from the deluge.

"Moccona has been in Thailand for 25 years and I cannot think of any reason why we would leave. Thailand and Australia are two important countries for Moccona in the region," he said.

Moccona sales in Thailand have grown for four consecutive years.

"Even before the floods last year, our sales grew at a double-digit rate."

Growth in the 3-in-1 mixed coffee sector was strong. The overall coffee market is estimated to be worth 18 billion baht this year, and Moccona expects coffee consumers will require more convenience in their drinks, driving demand of 3-in-1 sales.

The sales contribution of 3-in-1 coffee is about 75% of the total market, up from only 25% in the past eight to nine years.

The company is considering new investments in the kingdom to expand its capacity, but hasn't decided on where any new investment will take place.

"We aim to become the second-largest coffee brand in the Thai market over the medium term," said Mr Chandra.

It will add new product lines and improve product taste, formula and packaging, he added.

"Our strong selling points are quality, taste and smell, and we believe there is huge potential for us to grab market share from our competitors," he said.

The company allocated over 30 million baht for a marketing campaign from April 18 to May 18 to tell Thai Moccona fans it has returned. Some 1 million baht from sales will be donated to rebuild schools affected by the floods.

Apart from Thailand, the company is looking at expanding its coffee business in other countries soon.

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