Cooking oil firm forays into foods
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Sub Sri Thai (SST), a warehouse service provider and the producer of Tip brand vegetable cooking oil, has moved into the vibrant food and beverage business by acquiring Au Bon Pain and Dunkin' Donuts for Bt1.32 billion in the hope of accelerating growth.
“We expect to manage the new business in January,” Sumrit Tantidilokkul, managing director of SST, said yesterday. The food business has good dynamics with average annual growth of 15 per cent, he said.
Though there is high competition, there is also high demand.The food business spins off lots of cash, which would help SST lower its debt.
“The company targets revenue next year doubling to Bt2 billion, with the major part coming from food and beverage at 60 per cent, while warehousing will be at 10 per cent and vegetable oil 30 per cent,” he said.
The company has spent a total of Bt1.32 billion on these acquisitions by using its working capital and bank loans as sources of funds.
SST yesterday filed to the Stock Exchange of Thailand that the company’s board of directors has approved these and one other purchase.
ABP Cafe (Thailand) holds the franchise rights to Au Bon Pain bakeries and cafes in Thailand with 43 branches nationwide, of which 38 are in Bangkok.
Golden Donuts (Thailand) Co is the sole franchise operator of Dunkin’ Donuts outlets in Thailand with 201 branches, of which 69 are in Bangkok.
Sumrit said SST would retain the existing management teams of Au Bon Pain and Dunkin’ Donuts.
