Green tea production hit by Ayutthaya inundation

At least two key green tea players, Mai Tan and Oishi, have major manufacturing operations in Rojana and Nava Nakorn industrial estates, respectively. Both estates are located in Ayutthaya. The extensive water damage to their facilities will lead to reduced supply of green tea products in the market.
Tan Passakornnatee, CEO of Mai Tan, expects the green tea market to freeze at about Bt8 billion, which is the same as last year.
It would take at least six months to about a year for the Bt2.4-billion green tea factory and its hi-tech machines to resume normal operation, but the company has no plans to lay off more than 100 staff at the factory or cut their wages, he said.
The flood would hurt about 20 per cent of the company’s green tea sales.
“We are losing the opportunity to expand our green tea sales next year, especially during the peak summer season,” he said.
Mai Tan had targeted Bt1.5 billion in total sales this year, with Bt1.2 billion coming from beverages and Bt300 million from foods, but now expects total sales to drop to Bt1.2 billion-Bt1.3 billion.
Oishi Group also expects its total sales this year to dive from Bt11 billion targeted earlier to Bt9 billion-Bt9.5 billion after two-thirds of its production was wiped out by the flood.
President Matthew Kichodhan said Oishi’s food and beverage factory in Nava Nakorn might be closed for three to six months for restoration.
Oishi Group had aimed for about Bt3 billion in food and beverage sales this quarter, but the flood will cause it to miss its target by Bt500 million-Bt1 billion.
Parinya Permpanich, director of marketing and sales at Serm Suk, said the flood would not have a serious impact on the sales of Pepsi-Cola, which has been realised as an economical good and part of people’s lives.
“Compared to green tea, soft drinks are much cheaper and can be one of the best alternatives that flood victims can choose to drink besides bottled water,” he said.
Serm Suk has had to operate without two major bottling plants.
“We have closed our Nakhon Sawan factory since the middle of September as it was completely damaged by the flood, including machines. We have also closed our Pathum Thani factory since last week,” he said.
The flood has yet to impact the machines at its Pathum Thani factory, while the Nakhon Sawan factory is now under repair, he said.