Beverage company Sappe Plc is adjusting its strategies to sustain business growth in the long term.
According to Piyajit Ruckariyapong, the company's chief executive, Sappe shifted its focus to launching new products to tap consumers with high spending power in the second half of this year.
Ten products are scheduled for launch in both domestic and international markets, including those related to hemp and cannabis.
Moreover, the company set up a new business unit called industrial supply to explore new sales opportunities by providing raw materials and products for use in the industrial sector.
The company expects revenue from industrial supply to reach 100-200 million baht within 1-2 years.
"Thailand's beverage market is expected to be flat this year because of relatively weak consumer consumption based on rising energy prices, runaway inflation and persistent concerns on the Covid-19 outbreaks," said Ms Piyajit.
However, she remains upbeat that demand for ready-to-drink tea and water are rising.
Cannabis-related products are expected to see huge growth opportunities despite mixed feedback from consumers, said Ms Piyajit.
"We did not launch any products in the second quarter, even though this is considered the peak sales period for the beverage industry," she said. "There are no new government economic stimulus campaigns and many people still work from home."
In a related development, Sappe recently signed a memorandum of understanding with G.K. Hemp Group Co, a subsidiary of SET-listed Gunkul Engineering, a renewable energy developer and construction firm, to purchase cannabis and hemp products from the latter and to distribute and expand G.K. Hemp's products in foreign markets.
Under the cooperation, initially Sappe is expected to develop a beverage with hemp as an ingredient and launch it into the market in the third quarter this year. Then Sappe is projected to export raw materials.
Sopacha Dhumrongpiyawut, chairman of the executive committee of Gunkul Engineering, said Thailand is the first country in Asean to legalise cannabis and hemp and leverage the plants to become high-value economic crops.
This allows businesses to develop products that will meet the demand of consumers, said Ms Sopacha.
"This collaboration is an important step in creating business opportunities together, to help meet new consumer demands, especially in healthcare with the cannabis and hemp extracts used as raw materials," she said.
"We considers this an opportunity for Gunkul to add more channels to expand its business."
Gunkul has one cannabidiol oil extraction plant located at Khlong 11, Pathum Thani. The plant manufactures products for cosmetics, beverages and herbal medicine segments.
The factory has a production capacity of 200 kilogrammes of dry flowers per day.
