Thai Union Group projects that its global innovation initiative will contribute Bt28.2 billion, or 10%, of its sales by 2020, according to CEO Thiraphong Chansiri.
Thai Union, one of the largest seafood companies in the world, believes its aim to boost innovation revenue from near-zero to $800 million by the end of the decade is achievable. Mr. Thiraphong says the company can use its portfolio of strong brands to launch new products developed by its Gii (Global Innovation Incubator).
Through a series of mergers and acquisitions over the past several years, Thai Union Group has developed a solid portfolio of market-leading seafood brands, including the U.K.’s John West, the U.S.’s Chicken of the Sea, Italy’s Mareblu, France’s Petit Navire, and Thailand’s Sealect and Fisho.
The company expects its Gii to deliver significant results starting next year. The centre’s first product launch is expected in the final quarter of the year.
Thai Union remains committed to its pledge to reach $8 billion in revenue by 2020, despite its failed takeover of Bumble Bee Foods shedding $1 billion from its goal.
To reach its target, the company must achieve 15% growth, at minimum, per year for the next four and a half years, according to Mr. Thiraphong.
To help offset the revenue shortfall from the failed deal with Bumble Bee, Thai Union has developed three initiatives that add to the company’s mergers and acquisitions strategy as well as its organic-growth plan. These initiatives include emerging markets, global food service channel, and the marine ingredients business.