Thai Union Group PCL has announced a 10% strategic investment of THB 3 billion (€77 million) in R&B Food Supply PCL (RBF), a Thailand-based food ingredients company specialising in flavours, colours and coating.
The investment follows a multi-year relationship between Thai Union and RBF in which RBF has been supplying high-quality food ingredients for Thai Union products.
The partnership will accelerate Thai Union’s growth opportunities in the adjacent food ingredients industry, particularly to serve the increasing sophistication of ASEAN consumers.
RBF’s offering, which includes natural flavours and hemp extracts, among others, will enhance both Thai Union’s core offerings and newer products, including alternative protein and pet care.
“One of Thai Union’s strategic priorities is to expand our portfolio into new, growing and higher-margin areas, and this investment is fully aligned with that,” said Thiraphong Chansiri, CEO of Thai Union.
“For over three decades, RBF has stood out as a leading ingredients supplier to the food and beverage industry in Thailand, and we are excited to be a part of their journey. We look forward to working closely with the RBF team to unlock growth as, together, we continue to provide consumers with nutritious, tasty and innovative products across the globe.”
For RBF, the partnership will enhance its ability to integrate vertically into Thai Union’s supply chain and leverage Thai Union’s global footprint for international expansion.
Innovative Food Solutions
With a shared vision for innovative food solutions, both companies will leverage their respective capabilities to generate additional value to our customers and stakeholders, Thai Union added.
Somchai Ratanapoompinyo, CEO of RBF, said, “We believe that this partnership will leverage and strengthen both companies’ competitive advantages. RBF’s expertise and extensive experience of over 35 years in the food ingredients business will enhance Thai Union’s product offerings.
“In return, Thai Union’s global presence and reputation as a global player will help unlock RBF’s potential and accelerate our transition seamlessly from a regional player to become a global player in the food ingredients business.”
In August, the John West parent reported a 8.6% increase in sales in the second quarter of its financial year, boosted by the "diversification of our business," according to CEO Thiraphong Chansiri.