To All Shareholders
In 2021, Thailand and the rest of the world still face the epidemic situation of the Coronavirus Disease 2019 (Covid-19) which significantly has affected all economic sectors until present. However, the Company’s plan has been adapted for coping with the changing circumstance. The overall performance by business group can be summarized as follows
Vegetables, Fruits and Vegetables Business The world demand for canned pineapples and other processed fruits was said to be slightly affected by Covid-19, but overall, the demand for the products remains stable. In 2021, the Company has adjusted processed fruit business plan to reduce the impact on prices and raw material quantities by using a long-term pineapple supply contract system. This includes controlling production costs toward a maximum efficiency for compensating the negative impact affecting production such as rising packaging costs, labor shortages, and etc. Sales and exports were affected by container shortages, so the export volume was slightly less than projected. However, the Company continued to focus on product quality in order to meet the Company’s main customers who prioritize quality over price competition.
Beverage Business In 2021, the domestic ready-to-drink fruit juice and vegetable juice market growth decreased by 10 percent when comparing to the previous year. The market will still be affected by the Covid-19 situation, which is still an important factor causing the economy and consumer purchasing power to slow down. At the same time, the Company remains the No. 1 leader in the 100% ready-to-drink fruit juice and vegetable juice market, or the premium group due to product quality maintenance and new product offerings to meet the needs of consumers, given the intense competition in the domestic beverage market. In the part of Aura natural mineral water, the Company conquered the 4th market share of the domestic mineral water market. Overall, the mineral water market in Thailand has declined by 7%. However, Aura natural mineral water sales increased from 2020’s figure as a result of the existing customer loyalty in quality, the unique source of Aura natural mineral water,and positive response of consumers to the bundle pack promotion. The Company expected to gain confidence continually from consumers under the Tipco and Aura brands via marketing communications during the past year.
Retail business Retail businesses have been adapted to the Covid-19 situation by increasing distribution channel; home delivery, which has received good feedback from customers. In addition, the Company has developed new products to serve all diversified consumer needs in addition to the original products such as smoothies, which are considered to be a popular product among consumers.
Extraction and Agriculture Business Although the Covid-19 situation has affected other business groups of the Company, this created the opportunities of the herbal market for extraction and agriculture businesses. For example, Andrographis paniculata extract capsule under Tipco brand for those infected with Covid-19 and Ban Ta Khun Turmeric under Tipco brand that helps strengthen the body’s immune system, which are available through online channel. They are products which are able to keep up with the demand and have been well received by consumers.
In 2021, the Group received awards which reflected product quality and consumer confidence in the Tipco brand as follows:
– Tipco F&B Co., Ltd. received the No. 1 Brand Thailand award for the year 2020-2021, the number 1 popular brand in the minds of consumers in the category of 100% fruit juice (100% Fruit Juice).
– Tipco F&B Co., Ltd. received 2 Superbrands 2021 awards or the best brands of the year 2021 from Superbrands Thailand, given to Tipco fruit juice and Aura mineral water.
- Tipco F&B Co., Ltd. received The Most Powerful Brands of Thailand 2020 award or the strongest and most powerful brand award in Thailand in the fruit juice beverage category.
The Company became a member of Thailand’s Private Sector Collective Action Coalition Against Corruption (CAC) and was certified by the CAC Council. The Company has conducted business based on the principles of good corporate governance, social and environmental responsibility, and equitable treatment of all stakeholders.
All principles are the guideline for business management towards sustainable growth which are expressed via Company’s policy “Tipco develops its business along with the environment and society.” On behalf of the Board of Directors, I would like to thank the shareholders, trading partners, and business alliances in all sectors for the support and the trust in the Company throughout all these years. Also, I would like to extend my appreciation to all executives and employees for their dedication and hard work among the challenge of economic situation and unpleasant circumstances as a result of COVID-19 pandemic in the previous year.