Pataya Food Group (PFG), the producer of Nautilus canned seafood, is planning to invest Bt 500 million (US$14.7 million) in 2023 to support its growth as it diversifies further into non-canned organic food products such as fruit and vegetables, as well as into organic chicken business. The diversification is also part of its effort to mitigate risk and sustain long-term growth.
Of the Bt 500 million (US$14.7 million) investment, 40% will be allocated to improving its factory facilities in Samut Sakhon while the remaining 60% will be used to expand its production capacity, R&D and on New Product Developments. PFG is planning to launch new products during the upcoming Thaifex Anuga Asia show in May this year.
PFG has established the Mont Shamau organic farm on a 70-rai plot in Rayong province where it has grown a variety of fruit including durian and mangosteen as well as salad vegetables, which it supplies B2B to restaurants, hotels and supermarkets locally, mainly through business-to-business (B2B) channels for several years.
PFG is now selling B2C its fruits and vegetables to Gourmet Market outlets in Bangkok. In addition, it also opened Mont Shamau health food grab & go outlets at the Siam Scape building opposite MBK mall and at Terminal 21 by the Asok intersection. The firm plans to open its 3rd Mont Shamau grab & go branch in Bangkok this year.
According to PFG Chief Executive Wichai Karanapakorn, “Mont Shamau has received a warm response from health-conscious customers.”
Apart from its organic farming business of vegetables and fruit, the company has expanded into organic chicken breeding. Mr Wichai expects the company’s organic eggs to be available at supermarket chains soon.
Wichai added, “The canned seafood market is very competitive, and the availability and prices of raw materials, such as tuna, are uncertain. We must diversify our business into non-canned food, which provides good profits, balances risk and attracts new customer groups.”
PFG now owns extensive businesses in Thailand ranging from canned seafood to health food, snacks, pet food, fruit and vegetables as well as poultry farming. Food for human consumption accounts for 75% of the company’s production, with pet food for original equipment manufacturer (OEM) brands and own brands accounting for 25% of its output.
PFG recorded sales revenue of Bt 8.2 billion (US$241.3 million) in 2022 and it forecast sales growth of 8% in 2023. Roughly 32% of its revenue came from tuna products, pet food products (25%), mackerel products (18%) and salmon products (14%), while the remaining 11% came from other products.
