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June 10, 2021

Airline caterer SATS takes controlling interest in Thailand’s Food City Co.

SATS in Singapore plans to take a majority stake in a Thai sauces and curry pastes maker.

SATS in Singapore, a foodservice caterer to the airline industry, plans to take a majority interest in Thailand’s Food City Co., a branded and private-label manufacturer of curry pastes and sauces.

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What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
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Owned by Singapore’s state investment firm Temasek, SATS said its Thai subsidiary – SATS Thailand – has entered a “conditional sale and purchase agreement” with Food City’s owners, Bangkok Ranch plc, to purchase an 85% stake in the business for SGD21m (US$15.8m).

Bangkok Ranch, a duck meat processor, will retain a 15% holding in the business, it acknowledged in its own stock-exchange filing.

Food City operates out of Nakhon Pathom, a city in central Thailand, with a manufacturing plant in Ratchaburi, a town in the west of the country, and supplies to the US and Canada, Europe, Australia and Japan. Founded in 1988, the company produces authentic Thai products such as curry pastes, sriracha and sweet chilli sauces, cooking sauces and soups. Its branded offering includes Classic Thai and Shin Po.

SAT said it will expand Food City’s portfolio into ready meals.

Kerry Mok, the CEO of the company’s SATS Food Solutions arm, said in a statement: “SATS will benefit from Food City’s scale and location in the Thai food ecosystem to supply its growing customer base across the region, from aviation to foodservice and retail. This acquisition will strengthen our range of food technologies – fresh, cooked, chilled, ambient and frozen to serve different customers’ needs.”

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Free Report
img

What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
Enter your details here to receive your free Report.

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