SCGP continues to expand its foodservice packaging business in line with global megatrends as it acquires Go-Pak, a leading provider of foodservice packaging in the UK, Europe and North America, with production base in Vietnam. The deal will help expand customer base in the foodservice sector, retail and wholesale businesses, restaurants and fast-food restaurants in the UK, Europe, and North America, as well as help to expand its market base in ASEAN.
Mr. Wichan Jitpukdee, Chief Executive Officer, SCG Packaging Public Company Limited, SCGP, reveals that SCGP has continued to expand its foodservice packaging business in order to cope with increasing demands. SCGP currently has a production base in Thailand and has been providing foodservice packaging products, including food packaging and paper straws, under the Fest brand in response to demands for safe and environmental-friendly food safety packaging. In 2018, SCGP has expanded its foodservice packaging production base in Malaysia by acquiring shares of Interpress Printers Sendirian Berhad (IPSB). IPSB is a leading producer of food packaging made from paper and has gained BRC Global Standard in the AA level, the highest food safety certification. It has a customer base consisting of networks of restaurants and fast-food companies in Asia.
Current lifestyles are changing, and consumers are more inclined toward taking out food to eat at home or office and employing food delivery services. This is a trend that affects the expansion of the food packaging industry. Coupled with the trajectory of the food and beverages industry in ASEAN between 2019-2024 which is expected to grow at 6%-7% annually, the demand for food packaging is set to increase.
As a consequence of such trends, SCGP has on Jan 13, 2021, the acquisition of the entire 100% stake in Go-Pak UK Limited (Go-Pak). A leading provider of foodservice packaging solutions in the UK, Europe and North America, Go-Pak has its headquarters in Bristol, UK, and its production base in the south of Vietnam, both factors of which will contribute positively to the company's market and customer base expansion plans.
Go-Pak is a distributor of more than 250 foodservice packaging products, including plates, forks and spoons, and cups and glasses, made of polymer and various degradable materials. It has a production capacity of 4,000 million pieces per year and a global network of acquisition agents. Its customer base includes food service providers, retailers and wholesalers in food-related businesses, fast-food restaurants, and food caterers. Between the fourth quarter of 2019 and the third quarter of 2020, Go-Pak earned 68.7 million pounds (approx. 2,800 million baht) and its assets are valued at 40.2 million pounds (approx. 1,650 million baht).
"Our investment will boost our potential and strengthen our food packaging production and marketing capacities to cope with our enlarged customer base from the UK, Europe and North America. It will also enable us to provide more diverse food packaging solutions for the expanding ASEAN market. With more than 40 years of experience in the packaging business, SCGP will be able to help strengthen Go-Pak's operations," concludes Mr. Wichan.