Super whammy: Super Group braces for headwinds, soft sales amid branding shift

The group is ramping up its business model.

Super Group, one of the country’s largest food manufacturers, is eyeing a new product diversification strategy to ensure its sustainability. The move is expected to bring near-term headwinds, coupled with soft sales due to muted ASEAN consumption.

According to DBS, Super is strengthening its business model to build up its brand, create new product lines,
and capture new markets for the longer term. It will launch new products to target new market segments
next year to gain first-mover advantage, enlarge its addressable market, and sustain margins over the
middle to long term.

“We expect these initiatives to lead to higher expenses in the near term but translate into longer-term benefits. Along with new initiatives and new manufacturing capacities coming onstream, we expect relatively higher opex and lower margins these few years,” noted DBS.

Here’s more from DBS:

Super will embrace these three components to drive the next growth phase. They will strengthen their brand name by leveraging on Super as the anchor brand, while building on other sub-brands that are targeted at different consumer segments.

Super will create innovative new products to capture new consumer segments in the Branded Consumer market. They will reorganise and strengthen their teams to execute the new strategy.

The new products are expected to be in the market from next year. Super is expanding its product range to include instant tea and other healthy beverage options, to try to win new customers and get first-mover advantage in the new product segments.

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