Charoen Pokphand Group (CPG) plans to expand its frozen food business in Asia by synergising its flagship food firm Charoen Pokphand Foods Plc (CPF) and CPF's wholly owned subsidiary, Bellisio Foods Inc.
CPF yesterday launched Boston Market, a premium American frozen food, in Thailand.
Boston Market is one of the top brands of Bellisio Foods, which was acquired by CPF for 38.2 billion baht.
Boston Market products have been available at 7-Eleven and CP Fresh Mart in Bangkok since December. They will be available at leading supermarkets in March.
Boonchai Opas-iam-likit, the US business chairman at CPG, said the conglomerate's business in the US accounts for the largest portion of its export business.
Bellisio Foods is the third-largest maker of single-serve frozen entrees in the US and is also the leader in the same market segment in Canada.
Revenue derived from the US is $700 million, followed by Britain ($600 million), Japan ($300 million), Germany ($150 million) and Scandinavia ($100 million).
CPG is conducting a synergy plan that will be presented to the executive committee of Bellisio Foods by the end of this month.
"The frozen food and snack markets in Asia are growing well at 4-5%, while the US market is stagnant," Mr Boonchai said. "So we may launch our frozen food menus in the US market and export US frozen food brands to [places] in the region such as Hong Kong and Singapore, depending on each location's regulatory framework."
He said the Bellisio Foods acquisition is the first step in penetrating the US market, while CPG is considering merger and acquisition deals.
Mr Boonchai said it's a good time to invest in the US because the economy is picking up and recent tax reform may prompt capital flows to the country.
CPF is aiming for 10% organic growth over the next five years, with an investment sum worth 50 billion baht set for annual business expansion, said Prasit Boondoungprasert, chief operating officer for international trade and business development.
US Ambassador to Thailand Glyn Davies said the deal between CPF and Bellisio Foods is symbolic of the deepening trade relationship between the US and Thailand.
"I do not characterise the views of people I have private conversations with, but it would not surprise me if CP is already thinking about [increasing its investments] in other parts of Asia and the world," he said.
Mr Davies said he thinks the trade outlook between the countries is "very good" under the Trump administration.
"American companies are doing quite well, and the US is Thailand's largest non-Asian trade partner," he said. "This is an example of how Thai companies are moving into the world in a very dramatic way."
Asked how the potential labelling of Thailand as a currency manipulator could affect bilateral trade relations, Mr Davies said the result will have to be assessed but the success of the US-Thai relationship is aimed at working through such issues.
If a general election takes place this year, it will move Thailand forward economically, he said.
