Dutch Mill seeks more export revenue
Dutch Mill Group aims to become more of an international dairy company after the Asean Economic Community (AEC) becomes effective by the end of this year.
The company plans to export its dairy products to every Asean country by next year. Over three years, it plans to increase the sales contribution from exports, mostly to Asean markets, from 10 per cent currently to at least 25 per cent, said Theerachai Laokosakult, Dutch Mill’s new category and international business director.
He said the company started to export its dairy products to Asean markets about five years ago.
"Our Dutch Mill products are now available in all Asean countries except Brunei, Malaysia and Indonesia. However, we expect to be covering all Asean countries by next year," he said. Dutch Mill Group yesterday launched its first premium coffee, Arabus. The product is available in three-in-one and ready-to-drink varieties. The company will invest more than Bt200 million this year in marketing activities to promote its 100 per cent arabica brew.
It expects to garner 10 per cent of the market in the first year and reinforce the company’s aim to have more of an international presence as well as to cash in on the implementation of AEC.
"We have appointed a local coffee maker to manufacture Arabus for us under an OEM [original equipment manufacturing] contract. However, we are looking for future opportunities to produce coffee products ourselves," Theerachai said.
Recent research found that Thailand’s Bt31-billion coffee market was growing and still had room for new players. The factors are the increasing consumption of coffee by Thais and the trend of kiosks selling freshly brewed coffee. Dutch Mill has seen these trends as a business opportunity, both in Thailand and in foreign markets after the opening of the AEC this year, Theerachai said.
The new product will be promoted through TV, radio, print media, billboards, and promotional events. Actor Ananda Everingham will serve as presenter.
In the first year, the company expects to grab about 10 per cent of the three-in-one coffee segment and 5 per cent of the ready-to-drink segment.
Thailand’s overall coffee market is divided into four segments. The three-in-one segment is worth Bt15 billion, accounting for 48.5 per cent; ready-to-drink Bt10 billion, or 32 per cent; instant coffee Bt4 billion, or 13 per cent; and three-in-one functional coffee Bt2 billion, or 6.5 per cent.
