Which are the most performing Italian food products in Thailand? How can Italian suppliers improve their presence and distribution in the local retail? We asked Ms Arin Chantamasruxsa, general operations manager of Central Food Retail. Central Food Retail Company Limited is the largest supermarket chain in Thailand, which has been operating since 1994 and is one of the business units of The Central Group of Companies, Thailand’s largest retail business. With 10 different brands, CFR can fulfil all the requests of its customers: Asia’s finest food store and exclusive selectionsof food from all around the world (Central Food Hall); the best wine shop (Central Wine Cellar); the essence of Thai culture and living (Eathai); a premium coffee house from Italy (Segafredo Zanetti Espresso). The retailer has diversified each store format to represent the various lifestyles of its customers, so to offer, for example, everyday low price, or quality products at good value, or international products for every lifestyle. According to CFR, the five most performing Italian food categories in Thailand are chocolate, olive oil, wine, coffee and water. “As for chocolate – Ms Chantamasruxsa says – Ferrero chocolate is doing exceptionally well, while Bertolli is a major brand in the olive oil sector. Prosecco is in the top rank for the Italian wine and Segafredo Coffee is doing very well; by the way, Central Food Retail has an exclusive license on operating Segafredo Zanetti Espresso in Thailand. In the water category, S.Pellegrino is one of the best sellers”.
Thai consumers’ tastes are evolving, and some emerging trends are arising, such as the propensity for cheese, canned/semi-preserved fish, water, beer and cured meats. The opportunities to expand Italian food distribution are great, as Italian products are acknowledged and at present Thai consumers can only find basic ranges in supermarkets.
“In Thailand – Ms Chantamasruxsa says – Italian products are quite popular. Currently, the products that we offer cover the basic range. Our cus- tomers are becoming more and more demanding for traditional, authentic products from the source of origin. Italian suppliers could introduce the market trend and provide updates on new products to Thailand’s market, as well as provide strong promotional support in order to increase purchasing frequency and to compete with other countries. The story of each product is also crucial, for it is the key factor that attracts customers and drives sales. Moreover and most importantly, all imported products are required to have Fda registration. The degree of difficulty in acquiring Fda registration depends on the category: the hardest categories are canned/jar food, carbonated drinks, and dairy products. The application process would be greatly facilitated if suppliers could prepare all the documents that are needed to submit to the Fda”