Oishi sees 32% sales rise this year via aggressive expansion

The company aims to achieve sales of Bt15.3 billion this year through aggressive expansion.

The  group yesterday announced a Bt3.1 billion investment plan this year,  aimed at increasing the production capacity of  its ready-to-drink green tea products and the opening of 50 more Oishi Japanese restaurant branches, both in Thailand and abroad, at total cost of Bt650 million. 

About Bt600 million will be allocated to the latest Bt1.1-billion green tea facility at Wang Muang District, Saraburi Province, to be officially opened in March 15 this year while Bt1.4 billion or 9.6 per cent of the budget is set aside  for marketing, advertising and promotional activities. It will also invest in a Bt545 million central kitchen in Ban Bueng, Chon Buri.  

“Despite the past year’s disruptions to our production capacity, Oishi managed to achieve strong operating results,” said Matthew Kichodhan, president of Oishi Group. “Total revenues for 2012 rose by 22 per cent to Bt11.634 billion, with an 18-per-cent increase in our beverage business, while the growth of our food business was 29 per cent. 

“Net profit for 2012 slightly decreased to Bt654 million, mainly on the effect of Thailand’s 2011 flood, which led to a loss of sales opportunities of Bt650 million, as well as doubling the handling capacity of our central kitchen for the food business at a cost of Bt60 million. 

“The company also invested Bt100 million in brand building for Onori, a newly launched snack,” he said.

This year, Oishi expects to grow its sales by 32 per cent to Bt15.3 billion. This will be driven by several activities aimed at expanding markets both domestically and internationally.

For its beverage business, Oishi is aiming for 33-per-cent sales growth. As the market leader, in addition to international market expansion, the company aims to expand the category through a cradle-to-grave strategy with products that cover every target group and occasion. 

The company continues to drive the industry with the first carbonated green tea, Oishi Chakulza, which it says offers consumers a healthier alternative to carbonated soft drinks. 

New offerings such as 380-millilitre Oishi Green Tea at a price of Bt15, the 350ml Oishi Fruito product at Bt12, and the 400ml Oishi returnable bottle at Bt12 will also be key contributors to expected exceptional growth during the year.

 

NEW PLANT, ADVERTISING DRIVE

To support its growth further, the company will open a Bt1.1-billion production plant in Wang Muang, Saraburi province, on March 15. 

The new facility will increase output by up to 15 million bottles per month. 

Oishi has also set an advertising and promotional budget of Bt1.4 billion, which represents 9.6 per cent of expected 2013 sales revenue, to support all marketing activities throughout the year.

Oishi is targeting a 30-per-cent increase in sales for its food business this year. The company will use a strategy of increased market coverage, including the expansion of at least 50 of its flagship outlets – Shabushi, Nikuya and Kakashi – and new quick-service restaurants that it says will offer more consumers the chance to dine on great-quality Japanese food at affordable prices. 

Oishi will also focus on international market expansion, which expects to see significant movement in the final quarter, and new product offerings, particularly snacks and chilled/frozen food.

In line with its aggressive expansion, Oishi is investing Bt545 million to build a new central kitchen for its food business, which will open in Ban Bung, Chon Buri province, in October.

Oishi has a total of 154 outlets nationwide. 

The company’s five-year plan calls for 275 outlets throughout Thailand by 2016.

“Even though the food and beverage industry is intensely competitive, with many rivals and the ease of product substitution, we are confident that the company will achieve impressive growth, and 2013 will definitely be another remarkable year for Oishi Group,” Matthew said.