Thai Union Group Public Company Limited (PCL) is expanding its pet food operations in Japan by forming a subsidiary that will distribute, sell and import pet food and pet-related products.
A global leader in tuna production, Thai Union informed the Stock Exchange of Thailand on June 1, 2021 that investments in the new Tokyo-based subsidiary, Japan Pet Nutrition Co. Ltd., start with a total registered capital of JPY5,000,000 (US$45,000), which is divided into 50,000 ordinary shares, with a par value of JPY100 (US$0.9) per share. Its other majority-owned subsidiary in Thailand, Songkla Canning PCL, will have 45,000 shares (90%) in the new company, while the remaining 5,000 shares will be held by one of its board directors.
Benefits to Thai Union Group
Already registered under the laws of Japan in May 2021, the new company is expected to increase revenue and profits of Thai Union Group by building new customers in Japan for Thai Union's own-branded pet food products. Its other mission is to identify new Japanese business opportunities for the entire group of companies.
Thai Union expects to do well in Japan where the pet food industry is crowded with premium products. Thai Union's PetCare business unit has two pet food brands: Bellotta and Marvo. Each offers a wide array of products in terms of formats and flavors for both cats and dogs. With high-quality ingredients, a huge supply chain and strategic suppliers at its disposal, the global seafood leader primarily mixes fresh tuna loin with other natural ingredients to enrich the nutrition and flavors of Bellotta and Marvo, according to the company.
Performance during the pandemic
Thai Union said it was pleased with the performance of its PetCare division as it helped pull up the company's revenues during the pandemic with a first quarter 2021 net profit of THB1.8 billion (US$54.8 million), a 77% year-on-year increase. Chief Executive Thiraphong Chansiri said in a news conference that the company's revenue in 2020 also grew for the first time in three years after pandemic-related lockdowns fueled demand for its products, including pet food.
During the first quarter of 2021, a 20.8% year-on-year sales growth from PetCare and other value-added businesses contributed THB5.5 billion (US$167.5 million) to the group. Thai Union aims to be worth THB160 billion (US$4.9 billion) by 2025 by growing 5% annually.
