Thursday 30 May 2024 – Taokaenoi Food & Marketing Public Company Limited (TKN) spreads its wings to create growth abroad, appointing PT Sukanda Djaya company as the distributor in Indonesia in the bid to expand the market for Taokaenoi seaweed products through both traditional trade (TT) and modern trade (MT) distribution channels, along with accelerating the expansion of the seaweed product portfolio. This is to support this year’s total sales target of a 15-percent growth through both domestic and international channels with the aim to ultimately becoming a global brand in the near future.
Mr. Itthipat Peeradechapan, Chief Executive Officer of Taokaenoi Food & Marketing Public Company Limited (TKN), manufacturer and distributor of processed seaweed products both for domestic and international markets under the brand “Taokaenoi”, along with other snacks and health food products, revealed that world economy in 2024 is expected to further expand similarly to that of the previous year’s. In regard to the overall snack food market, it is expected to show a growth rate of not less than 7.9 percent, while TKN grew 22 percent in 2023 – higher than the growth of the overall snack food market. The important contributors of the growth are: 1) Increased demand for seaweed snacks, especially in countries such as China, Indonesia and Malaysia, with Taokaenoi initiating marketing activities that were in line with the consumption trends in those emerging markets; 2) Expanding the business to important market channels, such as the United States, by being able to penetrate into modern trade (MT) channels, namely Costco and Wholefood department stores; and, 3) The increasing trend of seaweed snack consumption, even though competitors in the market are on the increase, Taokaenoi’s wide range of products and the brand’s unique flavors are still the consumers’ top choices. As a result, sales in foreign markets as of 1Q24 grew 13.5 percent, accounting for more than 65 percent of the total sales, with continuing growth.
The Company is determined to move forward with the “3GO” strategy, especially the “GO Broad” – broadening the business without limiting the production and distribution of products to just one type, but continually developing new product groups to expand the product portfolio. At the same time, Taokaenoi is ready to focus on revenue management by effectively managing product mix and channel mix to enhance efficiency in the move towards the growth target of at least 15 percent through high-potential channels both domestic and overseas. Moreover, the Company has set its sight to leverage expansion in five major markets, namely, domestic, United States, Indonesian, Malaysian and Chinese.
Most recently, Taokaenoi has recognized an opportunity to expand the market in Indonesia. As a result, the Company has reached an agreement with PT Sukanda Djaya to appoint the Indonesian firm as the official distributor partner of the Company’s products in Indonesia. This is aimed at expanding the distribution of Taokaenoi seaweed snack products through various channels, including modern trade, traditional trade, HORECA, as well as E-commerce channels – all the which the local partner has the expertise in. Also, the Company saw the partnership as a growth opportunity and the potential to reach a wider range of consumers. Currently, the Company has derived 15 percent of sales from the Indonesian market and has expected sales to grow to more than 30 percent along with an increase in market share of seaweed snack products to further propel the Taokaenoi brand to become a global brand in the near future.
Mr. Wachira Yarnthasanakij, Chief International Trade Officer of Taokaenoi Food & Marketing Plc., said that the consumption of seaweed snacks in the predominantly Muslim Indonesia has been increasing significantly in recent times and has a high potential to grow even further. The appointment of a new distributing partner at the end of 2023 was aimed at focusing on expanding sales channels while getting ready to continue with the strengthening of marketing efforts among Muslim consumers, and the emphasis on communication through Key Opinion Leaders (KOLs) or influencers who share the same faith. This is to build confidence among consumers, along with organizing continuous marketing activities such as food trucks, tasting booths, product samples hand-out, etc. Most recently, TKN has joined up with the business partner to set up booths during important festivals such as during Ramadan (fasting season) at the Jakarta Lebaran Fair in Jakarta. The feedback during these events have been very positive.
“In growing a Thai brand and leveraging it to become famous on a global scale, we must begin by building a strong brand foundation. To achieve such a goal, Taokaenoi has aggressively been strengthening growth in foreign markets. In each country, it is necessary to adapt the work process and direction to match the consumers’ behavior, culture, lifestyle and the well-being of customers in that particular country. The collaboration with PT Sukanda Djaya will help to create a competitive advantage from the strong partnership and the wider distribution of all Taokaenoi products through a variety of distribution channels throughout Indonesia. Currently, Taokaenoi products are found on the shelves of more than 80 percent of modern trade outlets in Indonesia, with even more growth projected, especially through the traditional trade and E-commerce channels. In addition, we have expanded the market for baked seaweed products that targets consumers who eat it as a meal or as part of a meal. This is considered a new consumer base, apart from the snack market group,” Mr. Wachira said.
Mr. Philip Min Lih Chen, President Director of PT Sukanda Djaya company of Indonesia, said that the company has accumulated over 45 years of business experience as a representative and distributor of frozen and chilled food products, snacks, beverages, condiments and other consumer products that are imported directly from manufacturers in various countries in Europe, America and Asia. These are high quality products that are widely accepted and are distributed and marketed in both retail and food service channels. Our business started with the distribution of products manufactured by the parent company, including ice cream, dairy products, various fruit juices and other types of products in the same group. The company has its own transport system and distribution centers at more than 20 locations in various cities to distribute products through several channels throughout Indonesia.
As for the cooperation between TKN and PT Sukanda Djaya, this is considered to be a declaration of Taokaenoi’s readiness to penetrate the snack market in all its forms in Indonesia. The products under the Taokaenoi brand have varied portfolio in many formats, including baked, fried, grilled, and tempura. Every product has been developed from in-depth studies of consumer behavior so as to meet the demand of consumers in as many segments as possible. The focus is on presenting different strengths and features of the products, combined with the benefits and functions of all the flavors to showcase them as the prominent features of the brand. When combined with the strength of PT Sukanda Djaya, this partnership will further reinforce the ability to bring products into the market in way that will create benefits for both parties.
“We see the potential of the Taokaenoi brand with its high growth and its leadership in the seaweed market in Indonesia. Moreover, the consumers have become more concerned about health, and therefore, seaweed products have become the favored snack foods for growing customers. By becoming a distributor of TKN, we are ready to help expand distribution channels to cover the entire country of Indonesia,” Mr. Philip Min Lih Chen added.
