Mahanakorn Rice shifts focus as competition intensifies
Faced with both a slowdown in domestic rice demand and tougher competition, Mahanakorn Rice is now focusing its marketing plan on producing high-value-added rice and concentrating on the hotel, restaurant and catering sector.
The company targets sales of more than Bt100 million this year as a result of implementing the new strategy.
Managing director Teerapong Raktananon yesterday said that intense competition in normal trading had encouraged the firm to focus on high value-added rice and the hotel, restaurant and catering sector, known in the trade as the "horeca" market.
Domestic demand for rice has dropped steadily over the past several years. Consumption last year was about 8 million tonnes, but this year it is expected to fall by 3-5 per cent due to changes in lifestyle and the wider consumption of other carbohydrate products, he said.
The firm has, therefore, decided to capture more of the horeca market as demand for rice in hotels, restaurants and the catering industry is quite stable, increasing each year to serve both Thai and foreign consumers.
To meet the industry’s needs, the company has created its own rice recipes using a variety of grains in combination, in order to serve the different demands of chefs and their menus.
Mahanakorn is confident it can become the leading supplier to the horeca market this year, as most restaurants and hotels have traditionally ordered rice from wholesalers, Teerapong said.
According to a survey by the Public Health Ministry, Thailand has about 60,000 restaurants, some 10,000 of which are in Bangkok. Teerapong said the firm was initially aiming to supply more than 1,500 restaurants and hotels across the country in its bid to become a market leader in the segment.
Rice sold under the company’s Metropolis brand, which is categorised as horeca-selected, is already being supplied to many chain hotels in Thailand. Its customers include Novotel, Swissotel, Bitec and Siam Niramitr.
In addition, the firm has introduced its new rice high-value-added Boutique rice range to both local and foreign consumers.
The range includes Love Rice, which contains the local Khao Leum Poa (forget husband) grain, which the company says is a healthier option due to the high antioxidant level.
There is also Heart Rice, which is a rice-berry product that is good for the heart, and Beauty Rice, which is a geographic-indication rice that has been proved to be high in antioxidant and fibre, said Teerapong.
One kilogram of the company’s normal rice is quoted at between Bt20 and Bt40, while its Boutique rice products will increase revenue as they are quoted at more than Bt50 per kilo.
In a further effort to promote growth, the company this year will promote exports of its Metropolis-brand rice to high-potential markets, focusing on Thai restaurants overseas.
Targeted countries are Australia, the United States and those countries in Europe that have many Thai restaurants.
He said Thai restaurants abroad normally ordered rice in bulk packs from importers. The company will try to make inroads into the market by offering quality Thai rice grains to meet each restaurant’s needs, and then sell directly to them so that consumers can be assured of the quality.
