Australian retail company Coles has signed an agreement with Thai retailers Central Food Retail Company (CFR) to sell a range of 200 Cole’s branded products in Thailand.
The arrangement can unlock significant opportunities for Australian farmers and producers in the Thai food and drink market, which is estimated to grow at an annual rate of 5.7 percent from 2023 to 2027.
Coles Own Brand has launched at the Taste of Australia: The Magical Foods of OZ event, organised in Bangkok, Thailand, between February 22nd and March 7th of this year. The event allowed the brand to introduce its range of Australian-made baking goods, biscuits, butter, cheese, chips and more.
“As one of the largest food and beverage markets in Asia, Thailand is attracting interest from consumer packaged goods companies across the globe. Rapid urbanisation, the rise of the upper and upper-middle classes, and the growing health & wellness trend have catalysed the demand for high-quality, healthy, clean-label, and sustainable food and beverages,” stated Bobby Verghese, Consumer Analyst at GlobalData.
Verghese stated that 30 percent of Thai participants shared that they bought bakery, cereal and morning goods crafted by global multinational brands. This western influence cannot be understated.
Coles aims to leverage CFR's robust online and offline retail presence in Thailand. To propel their brand across Southeast Asia, specifically intending to infiltrate markets, including Malaysia, Singapore, and the Philippines.
The Australian and New Zealand free trade agreement with Thailand, in which there is a reduced tariff on beef and dairy products exported to the country, is a crucial aspect of which the Australian brand intends to take advantage.
“With the Thailand economy recovering from the COVID-19 pandemic-induced lull, domestic demand for premium imported food and beverages is set to boom. Australian food and drink manufacturers can leverage indigenous superfoods, such as manuka honey, lupin beans, and Kakadu plum, to address the rising demand for novel and better-for-you consumption experiences among Thai Millennials and Gen Z youth.”
High inflation rates are expected to be undercut by the significant domestic demand to import high-end products in short-term periods. Thus the impact will be shielded by the resurgence of tourist activity and, therefore, the revitalisation of the Thai food service industry.
