DUSIT THANI PUBLIC COMPANY LIMITED (DTC), is expanding into food business with the official launch of Dusit Foods Co., Ltd, a wholly owned subsidiary designed to leverage Dusit’s rich experience in food and beverage service to generate revenue from adjacent lines of business.
Officially introduced to food industry specialists at THAIFEX World of Food Asia 2019, Southeast Asia’s largest food and beverage show, Dusit Foods outlined its strategy to invest in food-related companies with strong growth potential.
It also announced its plans to market its own premium instant food brand, named Khong Thai, produced in partnership with Australian chef David Thompson and aimed mainly at international markets.
By pursuing organic and non-organic growth, Dusit Foods aims to achieve 400 million THB in revenue by the end of this year. It has set the target of achieving one billion THB in revenue by 2021.
Expanding on DTC’s vision to uniquely deliver Thai-inspired hospitality to the world, Dusit Foods aims to ‘Bring Asia to the World’ through Thai and Asian food products that reflect four key pillars of sustainable production – healthy, natural, organic, and supporting local communities – while also leveraging DTC’s strong reputation for delivering high quality experiences, particularly in Asia, where most of the company’s hotels and resorts are located.
To expedite its growth, Dusit Foods recently invested in two companies with proven track records in the food industry.
This included investing for a 26% stake in NR Instant Produce Co., Ltd. (NRF), a leading manufacturer and exporter of instant food and beverages for more than 50 brands; and investing for a 51% equity stake in Epicure Catering (ECC), the leading provider of catering services to international schools in Thailand. Dusit Foods plans to increase its holdings in ECC to 70% with further investment in early 2020.
As for its own products, Dusit Foods plans to establish Khong Thai in the international market. The products will initially be aimed at white tablecloth restaurants, with a view to targeting key food suppliers later.
The initial product line-up includes four premium recipes, namely Green Curry, Massaman Curry, Yellow Curry and Laksa. Each dish comes in two styles – “Simmer Sauce, Ready to Cook,” and “Concentrated Paste,” which, depending on the recipe, is designed to be combined with coconut milk and/or water.
Popular recipes such as Pad Thai Sauce, and traditional seasonings like Sri Racha, Fish Sauce, White Soy Sauce, and Oyster Sauce are all slated to be introduced soon. The product line up is expected to comprise at least 20 different items within the next two years.
“By leveraging and complementing our core operations in hospitality, we are confident that Dusit Foods will be a fruitful venture for our company,” said Suphajee Suthumpun, Group CEO, Dusit International.
“The return on investments will be a key driver in achieving our target of 400 million baht from food business this year. And these investments, coupled with the introduction of our own food products, will be another important factor in our sustainable and profitable growth as a company.”
“We are delighted to work with celebrated Australian chef David Thompson to develop the recipes for Khong Thai. His passion for authentic Thai food is well known, especially as he is behind the success of Michelin-starred Thai restaurants both in Thailand and abroad,” said Jate Sopitpongstorn, managing director, Dusit Foods Co., Ltd.
“Our initial marketing mix is 90% overseas and 10% domestic, with a particular focus on the United States because of the large consumer base and popularity of Thai food. We plan to penetrate both online and offline markets, reaching directly to chefs, food entrepreneurs and food services operators.”
Dusit Foods will launch Khong Thai in the U.S. this September, before expanding to England, Germany, France, and other key European markets.