Bangkok--18 Jan--OISHI Group
OISHI repeated its success in 2017 with increased profits and by far number one market share, aiming in 2018 to retain its leading position in the Japanese food and beverage industry firmly and continuously, by developing innovative beverages and enhancing its food brand for attention and creating sustainable growth.
Strong profit growth
Mrs. Nongnuch Buranasetkul, President and Chief Executive Officer, OISHI Group Public Company Limited revealed, "In 2017, while the Thai economy expanded moderately and out-of-home consumption has not yet improved, OISHI Group was able to maintain its sales and generate outstanding profits. 2017 sales (1 October 2016 – 30 September 2017) were 13,551 million baht in total, a small decrease of 0.6% from last year. Revenue from food business was 6,497 million baht, a -0.8% growth from last year. Revenue from the beverage business was 7,054 million baht, a -0.4% growth from last year. Total net profits increased from both businesses. The company's total net profits were 1,443 million baht, a 28.5% growth from last year. Net profits from the food business were 210 million baht, a 76.5% growth due to adjustment of proactive marketing strategies and efficient cost management. Net profits from the beverage business were 1,233 million baht, a 22.8% growth due to outstanding product innovation and promotional campaigns that attracted the attention of consumers, as well as efficient production capacity and marketing budget management."
"For the target in fiscal year 2018, the company will focus on maintaining its continuous leadership in the Japanese style food and beverage business firmly, with the following four main strategies: (1) Customer Centric, focusing on building the best experience consumers wants. (2) Innovation, developing outstanding and unique products, services, and marketing activities that create value for consumers. (3) Digital Transformation, using various digital tools to drive the business and reach a wider variety of consumers. (4) Continue to Build & Support Brand, developing a powerful and admired brand that results in OISHI gaining trust from consumers and therefore receiving awards to guarantee an outstanding brand, e.g. Superbrands Thailand Award for two consecutive years as a famous and admired food and beverage brand, Thailand's Most Admired Brand Award for three consecutive years as No. 1 trusted brand in the ready-to-drink tea category, and The Most Powerful Brands of Thailand Award as the strongest and most powerful in the ready-to-drink green tea category. To drive these four strategies to achieve the target, efficiency-based and excellency-based management focusing on operational efficiency, and excellence is required to move forward and be prepared for all situations."
"In addition, OISHI as a company committed to good corporate governance focuses more on operating business with corporate responsibility and sustainability by paying attention to environmental conservation starting from the inside. That is, all OISHI's production processes are environmentally friendly, including energy saving and efficient waste water treatment to maintain good environment for the community. The company also gives back to society through several social projects, e.g. "Hai" project to provide social support and assistance, e.g. urgent assistance for those suffering from disasters, quality of life improvement for the underprivileged, and environmental conservation starting from the inside with OISHI's environmentally friendly production processes. In addition, the company organizes "Im Jung" project to share OISHI food and beverages for the underprivileged and organize fun and creative recreation activities to cultivate morality especially "integrity" which is a core value of the organization. Such initiatives will reflect and refer back to OISHI as a food and beverage company committed to good corporate governance and giving back to the society." Mrs. Nongnuch Buranasetkul added.
Food business enjoys high profit growth and to continue generating growth with functional and emotional values
For the food business in restaurant category, Mr. Paisarn Aowsathaporn, Executive Vice President of Food Business, OISHI Group Public Company Limited stated that "By implementing a business development strategy focusing on improving OISHI Group's Japanese food products and services brand image throughout last year, the overall food business improved its profit growth. As a result, this year we will generate growth through 4 main strategies in accordance with the company's strategies including (1) Store Expansion, which focuses on continuous store expansion to reach target customers of all lifestyles. (2) New Brand Concept, by launching new restaurant brands, improving brand image, and modernizing products-services and brands. (3) New Innovation, developing outstanding products and more advanced service systems to meet changing consumer needs and lifestyles. (4) Sustainable Quality, which emphasizes products and services quality by implementing the "quality assurance systems" of GMP – HACCP – ISO 9001:2015 standard at all branches of OISHI Group's Japanese restaurants for deliciousness, quality and safety food standards. OISHI is the first restaurant in Thailand and Asia with all branches awarded certification of quality assurance systems by SGS (Thailand) Limited, the world's leading inspection and certification company".
"As the market leader, we have to set the trend or create new standards for the Japanese chain restaurant market to match the lifestyle of Generation Y customers who are not attached to brands but concerned for health and pay attention to food safety. This target group will play a more important role in driving the market in the future. Moreover, the company will focus on creating Functional Value of the raw materials and service quality and Emotional Value by emphasizing food quality and safety, which are now an important factor that builds consumer confidence and brand credibility." Mr. Paisarn Aowsathaporn said.
For the packaged food segment, the Business Development Office has continuously developed the company's products. Mrs. Kotchakorn Attarangsan, Vice President of Food Business Development, OISHI Group Public Company Limited, said "As the frozen food and packaged food market has been growing significantly, OISHI saw an opportunity and strong potential for OISHI's production. So therefore, the company has prepared the plan for market expansion by developing chilled and frozen packaged food that is comes with outstanding in form, taste, and package. We have a modern central kitchen to produce world class standard products to match instant life and a wide variety of consumer lifestyles, especially for the young generation. We will also expand our distribution channels to reach all target customers and expand into overseas markets including Asia and EU through synergy with the Group's partners."
Beverage business generates impressive profits with leading position
Mrs. Jesdakorn Ghosh, Senior Vice President of Beverage Business, OISHI Group Public Company Limited revealed that "The success of OISHI Green Tea to maintain its leading position in the ready-to-drink tea market in Thailand in the last year with continuous growth of its market share which is now 46% (Reference: Nielsen Jan – Sep 2017) proved we are on the right track. So therefore, in 2018 we will continue our strategy to focus on innovative product development to develop new rising star products to quickly gain attention from the market, especially OISHI Fruit Tea or fruit flavored tea, which helps attract teenagers. The recently launched OISHI Yuzu Orange, which is aromatic, refreshing, and uniquely sweet and sour from Yuzu oranges from Japan and mixed with chewy coconut jelly, has received a good response from teenagers. In addition, marketing activities that can excite customers will be continuously organized including summer promotions and the latest campaign that awards the winner an extraordinary trip beyond expectation that money cannot buy – 'OISHI Trip Sud O Go Japan, Enjoy winter with Pek Palitchoke', has received overwhelming attention from teenagers and fans of the latest presenter of OISHI Green Tea, Pek Palitchoke. For distribution, we will use synergy with Thai Bev affiliates by utilizing an efficient distribution system to help distribute products especially in traditional trade channels and the results have become more obvious. In addition, we will focus on the overseas market by collaborating with F&N partners in terms of production and distribution, focusing on target countries, including Cambodia, Laos, Europe and Middle Eastern countries. As a result, OISHI's export market has significantly grown and has maintained its status as the No. One brand in Cambodia."
OISHI will still focus on operating its businesses according to the company's vision to continuously generate growth, revise strategies to maintain product and service quality, and keep sustainable relationships with customers to firmly and sustainably retain its leadership in Japanese style food and beverage.