Dao-Heuang Group, the largest coffee producer in Laos, is ready for a major expansion of its coffee and other agricultural products in Thailand in a bid to double its overall sales to US$320 million in the next five years.
The group intends to double sales revenue in the Thai market to $40 million by 2018. Vice-president Boonheuang Litdang said Dao-Heuang has started building brand awareness of Dao coffee among Thai by spending 80 million baht to launch its first TV commercial yesterday.
The 30-second commercial features “Dao’s secrets” to communicate the unique selling points of its coffee.
Dao-Heuang provides three coffee products for consumers in Thailand’s market — premixed 3-in-1 coffee, instant coffee and roasted coffee beans.
The company expects a 1-2% share of Thailand’s 20-billion-baht coffee market within the next two years.
“Though the competition in Thailand’s coffee market is very tough, we are confident of competing in the market thanks to our complete coffee business operation, starting from cultivation, varieties development…
The business opportunity for premium-grade coffee in Thailand remains wide due to the small number of players.
The group has also launched contract farming for 1,000 rai of coffee plantations that can produce 500-600 tonnes of coffee beans for the group’s business in Thailand.
In the second half of this year, it also plans to open a flagship coffee house and restaurant called The Tea Room in Bangkok’s new Siam One complex opposite Siam Center.
More Dao dried-fruit products, which are popular among Thais, will also be introduced.
Dao-Heuang is a major company in Laos, managing various business such as retail, real estate, consumer products and hotels.
It operates seven Dao-Heuang duty-free shops along the border along with Dao-Heuang Market
A boutique hotel is now under construction and expected to be ready soon.
The group arrived in the Thai market five years ago by joining hands with Thai partners to set up Sum by Dee Co to distribute its Dao 3-in-1 coffee.
Dao-Heuang owns 35% of Sum by Dee, with its Thai partners owning the rest.
Apart from Thailand, the company will expand its coffee business abroad, particularly in the US, China, Vietnam, Cambodia and the Middle East.
It plans to open its first duty-free shop in Vietnam within the next two years at a cost of $5-10 million.
Dao-Heuang achieved sales worth copy 60 million last year — 80% from coffee and 20% from duty-free operations. Annual sales are expected to double to $320 million by 2018.
Category : IP News