Mama instant noodle producer alters investment plan amidst pandemic challenges

by asiafoodbeverages
0 comment

Thai President Foods Plc, the manufacturer of Mama instant noodles, has revised its overseas business expansion plans amidst the unabated pandemic challenges.

Pojjana Paniangvait, the company’s director, said the prolonged Covid-19 outbreaks have resulted in new challenges from disruption in global supply chain to changes in import regulations across the globe.

The company has decided to revise and tone down its investment plan which initially called for the opening of at least 4-5 new markets a year. It will instead invest more as a strategic partner in some of its existing foreign distributors. This should allow Thai President to strengthen its overseas operations and help build up business collaborations, she said.

Pojjana added, “COVID-19 could possibly last a long time, so the company has embraced digital business as a key marketing and sales strategy. In 2021, the company is selling a range of products on Amazon.com in the US through the Mama store. The company has also started to sell online in various markets including Asia, Australia, Europe and South America.” Currently, Mama products are exported to 68 countries with the biggest export markets include ASEAN, North America and Europe. Other export markets include South and Central America, Africa, South and East Asia. This year, the company started to export to Ukraine, Trinidad and Tobago, and Costa Rica. It is in the process of adding Egypt to its export markets.

Thai President Foods reported sales revenue of Bt 23.6 billion (US$721.2 million) in 2020, slight drop of 1.74% from the previous year, with 30% of revenue derived from international market. For the first half 2021, sales dipped further by 4.46% year-on-year.

For the domestic market, demand for Mama instant noodles grew slightly during the first half 2021. According to a company spokesperson, “We don’t have a plan for major investment this year because we are worried about the economic slowdown.” Last year, the company allocated a budget of Bt 800 million (US$24.5 million) to expand the production capacity of packet noodles at its factory in Lamphun province and cup noodles at its factory in Rayong to cope with rising overseas demand.

You may also like

Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?