ThaiBev's Oishi mulls over regional expansion for food segment

It's set to venture into Myanmar.

According to CIMB, they previously said that Oishi‟s Japanese positioning may not take off in Singapore and Malaysia, because the product was more geared towards Thai local tastes.

Management has a different view, believing that the perceived premium quality of Japanese food products extends to all Asians.

Management highlighted that Japanese food is even going to newly opened markets like Myanmar. Across Asia, the trends are that of major food brands buying up brands from small owners across Asia.

Here's more from CIMB:

Oishi itself is thinking about its regional expansion plans for food. For developing countries, it is considering entering the markets via a franchise model.

For more developed markets, management reckons than an acquisition model to buy out some brands in those markets, could be a viable expansion strategy.

On drinks, Oishi already has international expansion plans. It will move products into Russia, Myanmar and Laos. In the regional ASEAN markets where TCC/Thai Bev‟s ownership of F&N now gives it distribution strength, management intends to put some products through to Malaysia first to ride onto F&N‟s distribution prowess in the market.

On green teas, management reckons that the products of existing players, F&N and Pokka, have different taste vs. Oishi green tea products.

F&N‟s teas are western-styled black teas; while Pokka‟s bitter taste closely resembles a traditionally-brewed green tea.

Oishi‟s sweeter version is more "fun‟. Franchising aids overseas expansion for beverages. It is considering if it is viable to put the Oishi brand into other Southeast Asian markets.