Nature of Business
Group of companies’ products are categorized into 6 product groups as follows:
1. Pork – based Food (Native Foods)
2. Processed Seafood (Fish Balls)
3. Snacks Processed from Pork, Parts of Pork and Chicken
4. Ready-to-Eat “RTE” and Ready-to-Heat “RTH” Frozen Foods
5. Foods Shop in the Category of Quick Service Restaurants
The main income of the company derived 93% from domestic sales while export sales yields about 7% and the main export item was fish balls. For native food and the pork snack could be exported a very few countries because of the claim of foot and mouth disease and complete banned importation into EU, U.S.A. and Japan.
1. Pork-based Foods (Native Foods)
Pork-based foods or “ native foods ” constitute one of the core businesses of the Company. Their sales turnover is in the proportion of 42 percent to the total sales turnover. And this is the first business which has been conducted since the commencement of the commercial operation. The pork-based foods are produced from both factories of the Company at Bangplee and in Nakhon Pathom. The products are mainly marketed and distributed through modern trade comprising major retail business operators and convenience stores, up-country agents, direct to-consumer distributors, and Mahachai Food Processing Company Limited (“MFP”) markets and distributes the products to all fresh-food markets in the country, whereas the foreign markets is limited to Hong Kong only.
Pork – based foods comprise Shredded pork, Crispy pork, Chinese sausages, Northeastern (Isan) sausages, Vietnamese sausages, Fermented sausages, Pork balls and others manufactured under the brands “S.Khonkaen”, “Moodee”, “Moohoh”, “Huaykaew”, “Baanphai”, “Moo Champ” and “Setthi”.
2. Processed Seafood
Processed seafood is another core business of the Company. Its sales turnover is in the proportion of 34 percent to the total sales turnover. The products are processed by the factory of Mahachai Food Processing Company Limited and marketed and distributed by the Company and SKK Food Company Limited (“SKKF”). SKKF markets and distributes the products to all fresh-food markets in the country, whereas SORKON markets and distributes them through other channels comprising major retail business operators and convenience stores, upcountry agents, direct-to-consumer distributors, and foreign markets via importers abroad. The main importer countries include the United States of America, countries in the European Community,the United Kingdom, Israel, Japan, Korea and Hong Kong. The proportion of domestic sales to exports is 90 percent to 10 percent.
The processed seafood comprises fish balls, shrimp balls and squid balls. The products are graded according to quality to penetrate upper and lower markets. At present, the processed seafood of the Company comprises both products manufactured under the Company’s own brands and OEM products. The processed seafood of the Company is produced under the brands “Taechiew”, “Kwangchow”, “Kowloon”, “Mahachai”, “Odeng”, “Yaowaraj”,“Hengheng”, “Kaizen”, “Hong Kong” and “Taipei”.
In addition, chili pastes and dips are included in the seafood production line because their raw materials are based on shrimps and fish and they are produced at the factory of Mahachai Food Processing Company Limited which is a subsidiary. They are entirely produced under the Company’s brands “Thai Doem” and “Thai Niyom”. They are marketed and distributed by the Company through modern trade channels and are distributed by SKK Food Company Limited to fresh-food markets. The sales turnover of chili pastes and dips is in the proportion of approx. 4 percent, which is included in the processed seafood sales turnover.
3. Snacks Processed from Pork, Parts of Pork and Chicken
Snacks in the categories of pork, parts of pork and chicken, which comprise crispy sweet roast pork, seasoned roast pork and roast chicken with various flavors under the brand “Entrée” are still distributed by DKSH (Thailand) Company Limited only to other markets than convenience stores, whereas for the convenience stores the Company releases the products onto the market itself. At the same time, in the previous year the Company produced pork crackling for distribution under 2 brands in total, namely, “Entrée” and “S. Khonkaen”, and the product has been classified as a good accompaniment to alcoholic drinks for beer drinkers and those who like eating pork crackling with boat noodles.
4. Ready-to-Eat and Ready-to-Heat Frozen Foods
Frozen ready-to-eat meal and ready-to-heat meal consist of frozen meal and sweet. Presently, all manufacture under the brand of the clients (OEM) and the central kitchen serve to prepare food for Quick Service Restaurant under the brand “ Zaap Classic ”and “ Yunnan ”. And by policy, the Company has applied the strategy to gradually manufacture food product under its house brand in higher proportion. Presently, the Company had manufacture stew pork leg “ Yunnan ” for distribution in the Supermarket outlets.
5. Food Shop in the Category of Quick Service Restaurant
Quick Service Restaurant, the Company has opened restaurants in the category of spicy papaya salad (Somtam) and grilled chicken under the brand“Zaap Classic”, five outlets to be opened 2014 and the numbers had been increased to fourteen outlets in 2017. In this year, the Company has offered delivery service in the mode of call center of the company, and also offered food delivery service to outside platforms. At the same time, a lot of variety of food to serve the patron more satisfactorily.
Stewed pork leg with rice branded “Yunnan” hasbeen opened 19 outlets in 2016 and the number to be reduced to 18 by the end of 2017. The number of outletshad been reduced because the sales target not achieved, so the Company has adjusted the sales plan and newstrategy by reducing lesser investment budget per unit. The strategy will be applied in 2017 onwards.
For stewed pork leg with rice outlets branded “Yunnan” located oversea in 2 countries, namely 4 branches In Cambodia and 2 branches in the People Republic of Lao, totally 6 branches in 2017
6. Fattener Business
The pig farm business is deemed to be one that provides raw material surety for the Company. Over the years, the farms have been able to generate profits to the Company continuously. However, year 2017 was regarded as a year in which the farms were affected by fattening pig sale prices, which lowered considerably, because over the past years many big and small entrepreneurs had increased the quantity of parent stocks. Included was S. Pasusat Co., Ltd.,which had increased its parent stocks 2,200 in 2015 to 2,700 ones in 2017. The result produced was that in that year there was a large quantity of raised pigs that exceeded market requirements. However, S. Pasusat Co., Ltd. has endeavored to increase its management efficiency for more efficiency with lower cost of production, acquiring high-quality raised pigs to the extent that it is recognized by the circle that S. Pasusat Co., Ltd. is a producer of nice carcasses of pigs without the use of leanness enhancing agents,which carcasses sell easily at decent prices, and that its farms were registered by the Department of Livestock Development as foot-and-mouth-disease free and environment-friendly farms.