CPF unveils new biz model

“We are stepping forward with our strategy from manufacturer, ready-to-cook and ready-to-serve,” said Adirek Sripratak, president and CEO of CPF.

On Monday, CP Food Market, a “super convenience store”, was launched offering a comprehensive range of consumer products and foods. Shell Company of Thailand will introduce the shop in selected gas stations to replace its Select minimart. 

The new business model is an extension of CPF’s successful retail formats, particularly CP Freshmart. This strategy is designed to expand distribution channels to give consumers easier access to its products.

CP Food World will serve both ready meals and frozen products to cater to the dynamic lifestyle of the young generation. 

The initial target locations are office buildings, hospitals, international schools, shopping centres, modern stores, major communities, educational institutions and food courts. It plans to open three to five shops by early next year. 

Virat Techanirattisai, vice president for retail, said food centres have to invest about Bt15-20 million depending on location and space. The first shop with 450 square metres offers three main meals – light, heavy and fun – with more than 200 items stocked. They include both CP brand products and one-dish packs from CP Kitchen, CP the Grill, Chester Grill and other leading food brand such as Sky Luck, Yamadaya and The Bangkok. Besides A-Liew Chinese-style cooking noodles and a range of Khun Krit noodles, Cool Cup & Bubble Me, Hokkaido Mile and Rich Fruit health drinks will also be available.

“We see business opportunity in the food court channel as there are few operators and existing services have been managed by modern trade brands,” he said.

As a prototype shop, CP Food World’s sales reach only Bt60,000-70,000 per day compared with the target of Bt100,000-120,000. However, sales are projected to increase soon, after a marketing campaign is unleashed in the near future.

The business is expected to reach the breakeven point within 54 months.

“We’re conducting a marketing study to find suitable locations to establish the shop,” he said.

Adirek said the food business next year should grow by 10-15 per cent, as meat prices are forecast to increase while production costs, particularly for feed meal, are declining.

CPF’s operating results this quarter should shine as it is the high season for consumption and exports, he added.