Sector News

Thai Union Frozen signs JV deal with Saudi Savola

September 9, 2015
Food & Drink

(Reuters) – Thai Union Frozen Products Pcl , the world’s largest canned tuna maker, said on Tuesday it had signed a joint venture agreement with a subsidiary of Saudi Arabia’s Savola Group to tap the Middle Eastern seafood market.

The move by the Thai seafood company to expand into Middle East, one of the world’s fastest growing seafood markets, came after its planned acquisition of Bumble Bee Seafoods faced potential delays due to an antitrust investigation in the United States.

Thai Union and Savola Foods Company together plan to invest $30 million to $50 million in the joint venture over the next two years, the Thai firm said in a statement.

The joint venture will use Thai Union’s flagship John West brand to market in the Middle East countries and is expected to gain market share with a target annual sales revenue of over $400 million within the next three to four years, it added.

Savola Foods, which sells mass consumers foods such as edible oils, sugar and pasta, generated revenue of $3.9 billion in 2014.

The Middle Eastern market is estimated to be valued at over $3 billion, Thai Union said. The core markets such as Iraq, Iran and Saudi Arabia alone had seafood sales in excess of $2 billion in 2014 and had average growth of over 4 percent in the past five years, it said.

The company said it was on track to achieve sales target of $8 billion in 2020, despite the delay in Bumble Bee deal. Thai Union said it is keen to invest in growing markets in Africa, Canada and Asia. ($1 = 36.12 Baht) (Reporting by Khettiya Jittapong; Editing by Clarence Fernandez and Anand Basu)

comments closed

Related News

January 29, 2023

Danone appoints three new deputy CEOs

Food & Drink

Danone has appointed three deputy CEOs to “better connect categories and regions” and drive the delivery of its ‘Renew Danone’ strategy. The new appointees are Veronique Penchienati-Bosetta, Shane Grant and Juergen Esser. They will report to Danone CEO Antoine de Saint-Affrique.

January 29, 2023

PepsiCo Portugal invests €7.5m in biodigester

Food & Drink

PepsiCo Portugal has announced that it will invest €7.5 million to construct a new biodigester, which will turn organic waste into biogas. As well as helping its Carregado facility to achieve a 30% reduction in carbon emissions, the biodigester will also contribute to reducing gas consumption, allowing the installation to use the biogas produced during the anaerobic digestion process.

January 29, 2023

Kerry’s fellowship with Upcycled Food Foundation explores future of food waste prevention

Food & Drink

Kerry is sponsoring The Kerry Upcycled Food Foundation Fellowship in a new partnership with the Upcycled Food Foundation (UFF), the non-profit subsidiary of the Upcycled Food Association (UFA). The research fellowship is the second initiated by the UFF and will work toward advancing the understanding of the market, consumer perception and technical opportunities of upcycled food.

How can we help you?

We're easy to reach