Doi Kham Food Products expands into ice cream market amid declining fruit juice demand

Doi Kham Food Products Co, a Thai producer and distributor of fruit juice and dried fruit has expanded its enterprise to enter Thailand’s 15-billion-baht ice cream market in an effort to counter the continuing decline in fruit juice demand.
Chanannat Polpathapee, the company’s government vice president for sales and marketing, said the Thai fruit juice market, significantly within the middle to premium segments, has skilled an average annual lower of 5-10% over the past few years, amounting to four.5 billion baht in 2022, down from approximately 10 billion baht a year during the previous decade.
Polpathapee suggested that the market is prone to proceed declining due to shoppers having a wider alternative of beverages, particularly practical drinks, which supply numerous codecs and flavours.
A collaboration with Wall’s ice cream two years in the past led Doi Kham to resolve to supply its own ice cream, she stated.
“We studied the ice cream business for greater than two years. The pandemic triggered our marketing strategy to be postponed,” explained Polpathapee.
Pipatpong Israsena Na Ayudhya, the company’s president and chief government, famous that though the pandemic has affected many business sectors, ice cream has not been significantly impacted.
Doi Kham launched three ice pops in the middle of last month. Made from actual fruit at its Mae Chan factory in Chiang Rai, these ice lotions function environmentally pleasant packaging. The firm plans to introduce new products within the second half of this yr.
“Doi Kham Ice Pop is a niche product. It is an atmosphere ice cream that can be stored at common temperatures, in distinction to conventional frozen ice cream. We want our ice cream merchandise to be a model new various for era Z and Y clients who search fresh, handy products,” Polpathapee said.
Doi Kham ice cream is out there at over 30 Doi Kham outlets and 14 franchises, in addition to various trendy retail chains, together with Tops, Lotus’s, Big C, and Makro. It shall be offered in 7-Eleven comfort stores from next month.
“Doi Kham Ice Pop might be our growth engine that can offset the declining fruit juice,” Polpathapee added.
Following Approved to ice cream in China, South Korea, and Vietnam, the corporate participated in a global commerce fair in Japan in March this yr to promote its Doi Kham Ice Pop, with the chance of exporting the product abroad this 12 months.
The company anticipates sales of Doi Kham ice cream to achieve 50 million baht this 12 months, with projections of 600-700 million baht over the next seven years, together with export revenues.
According to Polpathapee, because the fruit juice market continues to decline, the company will examine opportunities inside new product classes that enchantment to the youthful technology in the course of the second half of this 12 months.
Additionally, Doi Kham plans to increase its business into B2B channels, such as hotels, restaurants, and catering and is conducting a feasibility study to launch a sister brand for brand spanking new products that cater to all customer life..

Leave a Comment