News last update:6 Aug 2012

CPF strives for Coca Cola image

As part of a global branding strategy, Charoen Pokphand Foods (CPF) plans to take up 70-80% of the food area in modern trade outlets in potential countries, particularly in the European Union and Asia, to create sales points for its chicken products.

To support the plan, the company plans to boost exports to EU countries such as France, Spain and Belgium, and to Japan, South Korea and Taiwan in Asia, as well as launch a TV advertising campaign. The company spends an average of Bt100 million (€2.2 million) per year on global advertising.

"The CP brand will have the same image as global brands like Coca-Cola, meaning that we will go everywhere around the world. What we are doing is a pilot project to promote the image of Thai brands," said Pisit Ohmpornnuwat, president of CP Merchandising, CPF's marketing arm.

"Our products should become world No 1 or two or three, like CP Group ranks as the world's biggest animal-feed producer," he said.

CPF especially wants to boost its chicken exports to the EU to 70,000 tonnes this year in response to an increased import quota. Under the EU's new annual quotas, Thailand can export a total of 160,033 tonnes of chicken products and 90,000 tonnes of salted chicken.

Thailand's chicken exports to the EU are predicted to reach the new quota limit of 160,033 tonnes within the next four years, Pisit said.

However, Thailand cannot utilise the export quota for salted chicken, which is considered as fresh chicken, because the EU has banned fresh-chicken imports from the Kingdom due to the bird-flu outbreak.

The successful negotiation of an EU-Asean free-trade agreement will also encourage the export of Thai chickens to the EU. Under the agreement, the import quota will be increased and the import tariff will be brought down from 10.9 to 8%, Pisit added.

The company also plans to boost chicken exports to Japan from 25,000 tonnes last year to 35,000 tonnes this year. The marketing strategy is focused on promoting the CP brand.

Pisit said Russia was another interesting potential market for chicken, pork and shrimp. Russia's chicken demand has reached 1.2 million-1.5 million tonnes per year and pork 600,000-700,000 tonnes per year, while it is expected to import 3,500 tonnes of shrimp this year.

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