Snack manufacturer sets sights on cracking growth

"We will launch two or three healthy snacks made from rice berry, brown rice and other health foods – developed by the company in collaboration with the Institute of Food Research and Product Development of Kasetsart University – to the market this year, which should boost sales by up to 400 per cent," owner and managing director Phiriyasart Trakarnjan said during an interview with The Nation.

To achieve the target, the company plans to broaden its distribution channels from traditional trade to modern-trade operators, after successfully distributing its products at Big C supercentres since early this year.

Sales via other modern-trade operators will increase revenue over the remainder of this year and during 2016, he said.

Porkriabkung Food Industry will also expand its export footprint. It currently ships to Laos, but will soon sell to other Asean markets, including Cambodia, Vietnam and Myanmar.

Its monthly revenue target of Bt5 million next year is expected to be split equally between domestic and overseas sales, he added.

To support the business expansion in terms of both new products and new markets, the company invested Bt2.5 million in additional food-processing machinery in the middle of this year, with the equipment scheduled to come on-line in the final quarter.

The expanded capacity will be for production of the healthy snacks set to be launched in the final part of the year.

"Our investment budget was in the form of a loan from the Small and Medium Enterprise Development Bank of Thailand, which was guaranteed by the Thai Credit Guarantee Corporation. They have supported our expansion since we established the business in 2013," he explained.

Phiriyasart, 36, resigned from his job in 2011 after deciding he wanted to go into business by himself.

"I did various jobs when I was studying for my bachelor’s degree in marketing at Srinakharinwirot University, such as sales work in a gift shop, and in a dress shop. Then I worked in several businesses, such as coffee, bakery and gift shops at the weekend. Some were successful businesses, while others failed.

"I then decided in 2011 to go into business on my own. I focused on snack foods after seeing research from Kasikorn Research reporting that Thailand’s snack market had an annual value of about Bt27 billion. This challenged me to get into the sector, as getting a market share of only one per cent would be enough for me to make a go of it," said the company founder.

Phiriyasart started to learn how to make prawn crackers from watching YouTube videos, then tested the flavour to match what the market wanted.

He withdrew up to Bt1 million via his credit card in order to get the embryonic operation up and running.

"Withdrawing money from a credit-card account is a bad way to finance a business, but at that time I didn’t have enough of a credit record to get a loan from the bank," he said.

However, after introducing his products to the market, Phiriyasart was able to boost monthly sales from Bt10,000 in the first three months to around Bt100,000 per month after fine-tuning the flavour of the snacks to match people’s tastes.

He initially ran the business by himself, distributing the crackers solely in his home province of Ubon Ratchathani.

The company – formally established in 2013 – now has 25 staff, distributes its range throughout the Northeast, sells nationwide via Big C supercentres, and exports to Laos – with plans to also ship its crackers to Cambodia, Vietnam and Myanmar.

"The key to my success is that I learn what customers want and research and develop my products to meet that demand," said Phiriyasart.