Seafood giant Thai Union Group is planning to grow its pet-care business via new operations in China and Europe for its subsidiary i-Tail.
In a Stock Exchange of Thailand announcement, the company said capital from the proceeds of i-Tail’s recent THB21.12bn (US$608.3m) IPO will be used to establish new businesses in Shanghai, China, and Utrecht in the Netherlands.
The operations will not manufacture pet-food but import, sell and distribute products made in Thailand.
The China business has been established with capital of CNY10m ($1.4m), while the Dutch operation has capital of EUR1m ($1.1m).
Pichitchai Wongpiya, CEO of i-Tail, told Just Food the company already sells pet-food products in the countries where it is setting up bases.
He said the growth of China’s pet-food market makes it an attractive proposition for the company.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData“According to Frost & Sullivan, sales in China’s cat- and dog-food market are expected to continue growing at a CAGR of 19.8% from 2021 to 2026. We see the opportunity to grow in this market as our 2021 sales from China accounted for 3.2% of our total proforma sales,” he said.
“In China, we see the room to grow in premium pet food and private-label products.”
The Netherlands operation will service a number of European markets, which Thai Union sees as attractive.
“Europe is one of our key markets to enhance the quality and breadth of our customer-service network. The UK is a large and attractive pet-food market, which give importance to sustainability. We have strong ESG practices which respond well to the market,” Pichitchai said.
“For Germany, it is the largest pet-food importer in Europe and we see the room to grow our business. We also intend to expand our business in producing private-label pet food in France and the Netherlands,” he added.
Pichitchai said the business has no current plans to acquire pet-food brands and businesses in China and Europe.
Last year, Thai Union invested in local insect protein pet-food business Orgafeed.
The John West and King Oscar brands owner invested in the business via its Corporate Venture Capital (CVC) Fund.
Thai Union’s pet-product portfolio includes brands such as Marvo, Bellota, Paramount and Calico Bay.