• Malee conducts product development and manufacturing while Monde Nissin is responsible for marketing, sales, distribution and logistics in the Philippines.
As part of the strategy to expand the Company's growth and move the business internationally, Malee Sampran Public Company Limited (or MALEE), the leading juice and canned fruit brand in Thailand, entered into a joint venture agreement with Monde Nissin Corporation or MONDE NISSIN to form Monde Malee Beverage Corporation (or MMBC) in order to capture the growth of the beverage market in the Philippines. This Joint Venture will manage new product development and marketing of all beverage products for the Philippines market, with MALEE as the exclusive manufacturer and MONDE NISSIN as the exclusive distributor.
Mr. Chatchai Boonyarat, CEO and Chairman of Malee Sampran Public Company Limited, says the Philippines has the second largest population in ASEAN, greater than 100 million people. The beverage market in the Philippines shows strong growth now and for the years to come. Both the economy and the GDP are improving continuously in accordance with the increased purchasing power of consumers as the number of middle income population rises steadily. The Philippines beverage market, excluding alcoholic beverages, is worth around 200 billion baht, with average annual growth of 8% and is likely to grow even more. The beverage market in the Philippines is still in its infancy, with less variety of products and less product sophistication compared to those in the Thai market. In sum, the beverage market in the Philippines is very attractive and has high growth potential.
Mr. Chatchai goes on to add that the Philippines consists of more than 7,000 islands around the country, hence one of the key success factors in this market is a strong logistics network with comprehensive distribution around the country. These are the clear strengths of our joint venture partner Monde Nissin Corporation.
Mr. Henry Soesanto, Executive Vice President of Monde Nissin Corporation says this joint venture provides additional strength to the two companies, Malee Sampran and Monde Nissin. Malee has experience and expertise in the beverage business for a long period of time, with competitive advantages in new product development with its innovation center, along with the capability of manufacturing high quality products with advanced production equipment. Monde Nissin has deep understanding of the needs of Filipino consumers, along with strengths in marketing, brand building and distribution across the channels throughout the Philippines. Monde Nissin is recognized to have one of the widest distribution network in the industry, with ability to reach and service the biggest modern trade account to the smallest traditional channel. The complementary expertise of the two companies will contribute to the smooth operation and success of this joint venture. MMBC aims to launch its first new product in the Philippines in early 2016 with a strong product pipeline play to continuously stimulate the market. "These new beverages will help Monde Nissin expand the company's product portfolio which is the category that has a high potential". The agreement on the establishment of the MMBC has a paid up capital of 100 million pesos. Malee holds 49%, Monde Nissin holds 49% and individual investors holds 2%.
Mr. Chatchai expects that the establishment of this joint venture business will help drive Malee's sales of its branded international business to grow at least 50 percent by the 2016. Malee targets overall sales in the Philippines market to be equivalent to the Company's sales in the domestic Thai market by the year 2020.
Monde Nissin is the leading food company in the Philippines. Their key products include instant noodles, biscuits, crackers, and other products with sales totaling of over one billion US dollars in 2015, whereby market share of noodles and biscuits represent up to 76 percent and 35 percent of their respective markets. For more information, please visit www.mondenissin.com.
Malee Sampran Public Company Limited consists of it own MALEE brand manufacturing business, which manufactures and sells fruit juice and canned fruit under the MALEE Brand, along with 100% fresh milk under the Chokchai Farm Brand. Malee is also a provider of product development and contract manufacturing for leading companies both domestic and abroad. For more information, please visit www.malee.co.th or on Facebook at MaleeSociety.