Thai Union Is Rebranding To “Chef Of The World”ff

Source: Bangkok Post

Thai Union Frozen Products Plc (TUF), the world's largest canned tuna producer, is undertaking a major corporate rebranding to prepare for the emergence of the Asean Economic Community (AEC).

The company hopes to double exports to the region within two years, said president Thiraphong Chansiri.

At present, Asean outside of Thailand accounts for around 5-10% of TUF’s annual sales of USD 3.23 billion.

The rebranding, the first in the company’s 35 years of operation, is aimed at strengthening TUF’s corporate identity to be on par with well-known companies such as Charoen Pokphand and Unilever.

“So far, consumers know our products through our brands, such as Chicken of the Sea. But they don't know they are produced by TUF,” he said.

TUF bought a stake in Chicken of the Sea in 1997 and now owns 100% of the US-based company.

So far, TUF’s Select Mackerel and Fisho have been distributed to neighboring countries, such as Vietnam, Laos, Cambodia and Myanmar, Mr. Thiraphong said.

“These neighboring economies have a good deal of potential, and consumers there are willing to pay more for quality food from Thailand,” he said.

“As the AEC is going to remove trade barriers in the region, we are putting more of an effort into branding ourselves.”

TUF is promoting itself as “Chef of the World” and aims to increase its revenue to USD 8 billion by 2020. It projects 17-20% revenue growth this year.

The marketing budget for Thailand will double to 200 million baht this year. About 40 million baht is allocated for the rebranding campaign.

The company aims to raise its domestic sales from 1.8 billion baht last year baht to 2.2 billion baht in 2012.

At present, the US and Europe account for 36% and 33% of sales, respectively, with Thailand and Japan contributing 10% each.

Mr. Thiraphong said the 40% increase of the minimum wage this month is manageable, but that the company might seek to raise product prices later this year. Out of its 32,000 employees worldwide, 25,000 are working in Thailand.

Shares of TUF closed yesterday on the SET at 75.50 baht, down 1.25 baht, in trade worth 188.61 million baht.