F&N fits into ThaiBev's long-term global plan, says CEO

Expanding abroad became a priority for ThaiBev about eight or nine years ago. The direction was set by the group’s chairman Charoen Sirivadhanabhakdi, who was not satisfied with only a local market of about 60 million to 70 million people, but had his eyes on the 6 billion consumers around the world. Since then, the group has attempted to differentiate its products, branding, and other strategies.
Not only has its beverage business expanded regionally and globally, the group is looking to broaden its agricultural business with the development of land plots for coffee plantations in Laos and Cambodia.
Thapana Sirivadhanabhakdi, president and chief executive officer of ThaiBev, said in an interview with The Nation that the company, which currently has a 29.1-per-cent stake in F&N, considered itself a substantial shareholder in the Singapore firm.
“We have recognised the takeover deal for F&N to be a win-win strategy for both companies. It will be a kind of complementary [effort] between businesses in this promising Asian region,” he said.
Thapana said ThaiBev’s investment in Oishi Group was another clear example of a win-win strategy. Oishi has enjoyed larger distribution coverage, especially in the traditional trade, with the support of ThaiBev.
“We previously acquired Serm Suk, a leading local logistics company, and it will develop and provide returnable bottles for Oishi for its beverage products, especially green tea.”
He said what the company had been doing with F&N was quite clear in the eyes of investors and the general public. The company had never played games, but was looking for long-term value creation with F&N.
“Our past track record is clear, as we tend to support and create value in any company we have invested in. With F&N, we are looking to explore opportunities for our beverage business as the main objective. It is a quite natural investment, as we will have a pipeline of sequential business deals.
“We studied F&N for a long time. It has strong cash flow and a distribution network that has spread throughout the Asia-Pacific region, providing us an opportunity to grow ourselves in the region,” Thapana said.
By owning a substantial stake in F&N, the company will be able to learn from it as well as add value and benefit to the company, he said.
Thapana said the coming Asean Economic Community would be quite different from the European Union, as individual members would have their own skills and expertise, such as engineering, agricultural industry, healthcare and tourism. They have also similarities in both business know-how and technology transfer.
“The AEC will create a lot of opportunities if all members cooperate in trade negotiations with the Western countries,” Thapana said.