This year’s report focuses on the rise of online grocery and the unique challenges it presents for the food and beverage industry.

It highlights the insights into the new omni-channel world where smart packaging plays a major role in creating new business opportunities.

In Thailand, the online grocery sector is estimated to grow five-fold by 2030 based on current projections.

In light of this forecast, the issues of speed, personalisation and uniqueness, as well as convenience and environmental friendliness, become particularly important.

Ratanasiri Tilokskulchai, marketing director at Tetra Pak Thailand, said the Thai grocery market place has been facing challenges this year, with the overall fast-moving consumer goods (FMCG) market declining by 2 per cent.

At the same time, online grocery shopping, although still only a small piece of the market, keeps growing and already plays a significant role in the industry.

“Tetra Pak Index forecasts that the online grocery segment will grow by 17 per cent worldwide from 2017-2022. At the same time traditional grocery outlets, such as supermarkets and convenience stores, will continue to play a major role in the market, but with a much slower growth rate of only 2-5 per cent.

“The main reason for this difference is that consumers now look for the most convenient channels which let them make purchases anytime and anywhere by using their smartphones. Bangkok, in particular, is one of the world’s leap-frogging pioneers in the online grocery business, with the market estimated to grow from 1.1 per cent in 2016 to 5.7 per cent by 2030,” she said.

Ratanasiri highlighted four major trends for brands to consider in terms of product development to keep up with these challenges.

First, convenience is the main driver for online consumers, as time-crunched shoppers look for new ways to make their lives easier.

Key opportunities include easy-to-use products which are convenient to consume, keep and transport.

Second, sustainability is an area that greatly influences consumers’ brand choices. Nowadays people show increased interest in the entire process, from how raw materials are selected to how products are recycled.

Consumers also want to know how brands commit to protecting the world.

Third, personalisation and uniqueness is key to customising the shopping experience. Getting consumers to purchase items online without first seeing and trying them in person creates a challenge which can be addressed through high-quality attractive packaging.

Great packaging not only helps to stimulate trial purchases, but also give the fun unboxing experience which may lead to further purchases.

Fourth, technology and performance, such as packaging tracking systems, will become a critical factor in boosting efficiency in online grocery logistics.

This is crucial, because logistics become increasingly complex as consumers shift towards buying more frequently but in smaller amounts.

The use of robotics, artificial intelligence and data processing are all parts of the solution which is aimed at transforming the supply chain.

Another important element in the online grocery space is smart packaging, which uses codes to communicate with consumers, the marketing director said.

Radio Frequency Identification (RFID) or QR (Quick Response) codes can be read by small scanners or mobile phones.

“Smart-packaging features allow brands to connect and provide positive consumer experience, which is a key factor in the online grocery shopping. Sharing important information such as production materials, nutrition facts, current promotions and environmental initiatives is only one example of how smart packaging can be used.

“It opens up all kinds of possibilities for strategic communications and creating a sustainable relationship with consumers in the future,” Ratanasiri explained.

The Ministry of Finance’s General Department of Taxation announced the list of the 100 biggest taxpayers under directions of the government and the ministry.

Being in the list resulted from Vietjet’s business performance last year, for which the airline reported 42.303 billion dong (Bt60.4 million) in revenue and a 5.073-trillion dong profit after tax – increases of 54 per cent and 73 per cent respectively, compared to the previous year.

The company contributed more than 4.197 trillion dong to the state budget, including direct and indirect taxes, charges and fees, the ministry said.

Nguyen Duc Tam, Vietjet’s vice president, said on Tuesday: “Aviation is a special industry and achieving significant business growth is considered no less than a miracle. After six years of operation, Vietjet is proud to be recognised as the top corporate income taxpayer to the government for the second time.

“We look forward to further supporting the development and integration of our home economy in the coming years.”

General Department of Taxation data reveals that accumulative corporate income tax by companies in the list reached VND110.027 trillion, accounting for 65.59 per cent of tax by all Vietnamese enterprises.

The new product is set to penetrate the Thai teen market by overtaking both the conventional snack shelf and extending the brand’s distribution channel to Bar B Q Plaza restaurant chains with a Korean Side Dish set.

Thitiporn Thammabhimookul, marketing director of non-alcohol business at Singha Corp, said on Tuesday that the group’s Masita brand had always focused on quality seaweed and various flavours such as Original, Spicy, Barbecue, Larb and Tomyum to appeal to teenagers, who are the brand’s core target.

Masita is now embarking on a new journey by collaborating with Thailand’s No-1 barbecue restaurant chain, Bar B Q Plaza, the executive said.

These two brands will come together to offer a completely new flavour, Grilled Bacon with Bar B Q Plaza Sauce, by combining the unique flavour of Bar B Q Plaza’s sauce with fried seaweed and expanding the new experience of taste for new product trials.

Bar B Q Plaza will also be bringing its iconic brand mascot Barbegon to Masita’s packaging and brand to help attract teen and first-jobber consumers age 12-25 to taste the new product, Thitiporn said.

This collaboration with Bar B Q Plaza will both help diversify Masita’s brand portfolio and differentiate Masita from other competitors in the market, he added.

The launch on the last day of the Fifa World Cup finals drew more than 250 guests.

Rey Cruz, Vice-President for Partner and Client Management (Payment Platform Solution), said the collaboration would enhance the new payment method.

The RapidzPOS machine will soon be introduced to merchants and department stores, which will lead to more users.

“We see a huge potential and exciting synergy between Rapidz and our company,” Cruz said.

“As one of the leading companies in Asia, providing the actual system to RapidzPay, and more importantly providing different payment options to the growing market and users, is really important. Together, we will bring wider and stronger global payments for all users with ease and efficiency.”

The T5 windfarms in Nakhon Ratchasima and Chaiyaphum have been supplied by both Vestas and General Electric.

Vestas has installed all 60 V136-3.0 MW turbines for two of the projects.

GE is supplying 90 GE3.43-137 turbines for the remaining three projects, which are at various stages of installation.

GE has also completed construction of six new substations as part of the grid infrastructure being built for all five projects.

The last project is expected to be completed by Q1 2019.

“We are extremely pleased with the progress on the T5 windfarm projects,” said WEH vice chairman Nop Narongdej.

“Once completed, WEH will have developed and constructed 720 MW of onshore windfarm capacity in Thailand, making it the single largest wind-power developer and operator in Southeast Asia.”

The T5 projects announced financial close in November 2017, with the Bt37 billion in financing arranged by Siam Commercial Bank.

The LNG (liquefied natural gas) terminal will have an import capacity of 7.5 million tonnes per year and is expected to be finished in 2022.

As one of PTT Group’s projects that has adopted an Integrity Pact since 2017, the procurement processes and disclosure of important project information are transparent and under the observation of independent observers.

The store in Ekachai Road in Bangbon district covers 1,600 square metres on four levels and features premium-quality original car-manufacturer parts, aftermarket parts brands from around the world and Thai parts brands.

A second Bangkok store of similar size will open on Srinakarin Road in Bang Na next month, while others are planned for Minburi, Bang Yai, Bang Khen and Ram Intra in the capital.

Burson is part of Bapcor Ltd, which is listed on the Australian Stock Exchange.

Bapcor’s strategic local partner in Thailand is the Sammitr Group, which specialises in commercial auto parts and manufacturing.

The Bangbon store had a soft opening on July 21.

Each store will cost about Bt20 million in set-up costs, including inventory.

Darryl Gray, General Manager of Burson Auto Parts Thailand, said the company plans to open four or five stores in Thailand this year and to eventually have more than 20 outlets.

“If we are successful in Bangkok, we plan to open other branches outside the capital and in neighbouring countries,” he said.

Burson opened its first store in Australia in 1971 and has steadily grown to become a top supplier of automotive parts, tools, accessories and equipment.

The company’s net profit margin improved to 4 per cent from 2.9 per cent in the first quarter. Excluding foreign exchange impact, sales would have held stable at with a 0.1 per cent decline.

Gross profit improved significantly from the prior quarter to Bt4.709 billion, while the gross profit margin was 13.8 per cent compared with 11.3 per cent in the first quarter of this year. Inventories of higher-priced raw materials, particularly in the shrimp business, along with the baht appreciation, contributed to gross market volatility.

Thai Union’s ambient seafood sales in the second quarter were Bt16.363 billion, down 1.6 per cent year on year, and the sales contribution from the frozen and chilled seafood business fell 2.6 per cent to Bt13.324 billion. PetCare and value-added product sales fell 1.2 per cent to Bt4.450 billion over the same period last year, while the baht appreciated 7 per cent year on year. In the first half of 2018, North America contributed 38 per cent of total sales, followed by Europe at 32 per cent, the Thai domestic market at 10 percent, and other markets at 20 per cent.

Tougher market competition in North America, together with US dollar depreciation, saw the sales of ambient, frozen and chilled seafood, particularly shrimp and lobster, decline in value while the volume of the frozen and chilled business grew 3 per cent in this key region. However, Thailand, China and the Middle East continued to grow, with sales contributions improving due to the launch of new products and strong marketing and sales efforts.

Selling, general and administration (SG&A) to sales ratio increased to 10.4 per cent in second quarter of this year, compared to 9.5 per cent in the same period last year. This change is mainly due to negative one-off costs that occurred in the second quarter, and legal costs related to North America settlements.

Strong working capital management and the improved operational earnings before interest, tax, depreciation and amortisation (EBITDA) in the second quarter contributed to a good operational cash flow performance of Bt7.5 billion for the first half of 2018. Together with dividend payments in April of Bt2.4 billion, investments in Russia and Thailand, continued productivity focused capital expenditure (capex). Thai Union kept net debt to equity ratio stable at 1.41 times in second quarter compared to 1.38 times at the end of 2017.

“Despite continued pressures from volatile raw material costs and challenging market environments, we increased our gross margin and net profit showed improvement,” said Thiraphong Chansiri, CEO of Thai Union. “Thai Union will continue to work harder to weather the industry’s volatility as we focus on continued business and product innovation, while growing our geographic diversity,” he added.

In the second quarter of this year, Thai Union’ss subsidiary Chicken of the Sea reached a settlement with Walmart in an antitrust litigation in the US, and the company is in advanced negotiations in various other litigation discussions. As a result, Chicken of the Sea recorded a US$44 million one-time accrual to reflect potential risks.

Thai Union completed its 45 per cent acquisition of TUMD Luxembourg. TUMD wholly owns three Russian companies: Dalpromryba Limited Liability Company; Torgovo-Promyshlenny Kompleks Dalpromryba Limited Liability Company; and Maguro Limited Liability Company. These companies are collectively known as the DPR Group (DPR).

DPR is a retail-focused fish and seafood business, and it is Russia’s No 1 canned tuna producer. Thai Union opted to make the investment in DPR because its manufacturing and distribution platform offers significant opportunities for further growth and development. DPR, which has sales of around US$45m, operates in both frozen and ambient segments, and owns brands such as Maguro, Captain of Tastes and Rybar. Thai Union expects to gradually increase shareholding to 80 per cent over the next three years.

Thai Union reached an agreement in June to acquire a 25.1 per cent stake in Thammachart Seafood Retail Co Ltd (TSR) for about Bt37 million. TSR, which generates sales in excess of Bt660 million, provides professional management services to Thai retailers for their seafood counters, handling fresh and frozen product at 158 locations in Thailand. This includes two food and beverage concepts at eight locations, The Dock Seafood Bar and The Lobster Lab, as well as management of the Ocean Bar.

Min Min, chief operating officer of 3KO Ventures Co, which operates Barlolo.com, said in an exclusive interview that more than 50,000 people typically visit the website each month to buy the goods showcased by more than 1,000 merchants. He also takes pride in the growth of the platform over the past 13 months.

“Since our launch in mid-2017, we have seen a significant rise in Myanmar people’s interest to buy things online,” Min Min said.

“Digitalisation is everywhere, and it has big impacts on market dynamics. Now people here have changed their mindset. They go to check online when they think of buying something.”

In the beginning, the platform started with a classified model. Now it mainly focuses on transactions by encouraging people to register as its members so that they can buy and sell things easily, he added.

“Actually, it does not matter how many people visit our website if nobody buys anything. Our aim is to link small merchants with buyers across the nation,” Min Min said.

“We believe in creating a platform that caters to the needs of local communities, improving livelihoods by offering technology which empowers merchants to sell products across Myanmar, especially for second and third-tier cities.”

The firm has a team of 33, and aims to expand its workforce outside Yangon region. To date, half of its sales come from Yangon, the nation’s commercial hub, but in the long term, the company foresees the rising demand from other parts of the country. The best sellers on the platform are products in the health and beauty, and fashion and cosmetics categories. It also focuses on electronics, mobile accessories and books, Min Min said.

Yu Sett Naing, operational lead of the platform, said Barlolo aims to be No.1 online marketplace that enables merchants to manage and showcase its products nationwide, along with facilitation of logistics and payment solutions. She said most merchants in Myanmar are middle-class people who do not own a shop, and are constrained by excessive rents, lack of logistics and poor payment collection.

“Starting a business is really difficult here. Even if you have a shop, you cannot predict how many people will visit your shop,” she said.

“It will be more difficult in the rainy season. So we expect to benefit the local community by offering a marketplace for them.

“What we aim to achieve is that when people think about general products, our [brand] name instantly comes to their mind.”

The firm company is focussing on identifying the right logistics partners and improving payment solutions including mobile banking options.

It is also working to ensure that digital payment solutions such as Visa and MasterCard are accepted on the platform by September. Additionally, discussions are under way to partner with MPT and Myanmar Post to leverage on incumbent institutions and their existing reach, Yu Sett Naing said.

As an online marketplace, the firm hopes to promote accessibility to small merchants across the country.

“Our team is reaching out to local merchants to educate them on general usage of Internet and assist them in showcasing their products on our platform. We encourage entrepreneurship and job creation by leading the trend in online transactions, allowing anyone to open their own shop,” Yu Sett Naing said.

“Currently, shops and buyers in outer regional townships are limited to whatever is available or offered to them by distributor visits,” she said.

“This restricts the offerings available to regional consumers who often have to pay a premium due to lack of access. Our platform provides regional buyers and wholesalers with transparency on pricing and product selection available across the country.”