Dusit Foods enters into an agreement to acquire a 55% stake in
Royal Port and Hello Asia Bakery to develop the OEM model and
stimulate the expansion of franchising activities to increase recurring revenues.
Bangkok, Thailand, May 30, 2022: Dusit Foods Company Limited, a wholly owned subsidiary of Dusit Thani Public Company Limited (DUSIT), has bolstered its portfolio of food businesses in Thailand by entering into an agreement to acquire a 55% stake in cutting-edge Port Royal Company Limited . an art pastry factory producing French-style pastry products, and its associated franchise business Bonjour Bakery Asia, comprising over 50 branches across Thailand and a branch in China.
The upstream strategic investment was made in line with DUSIT’s vision to optimize food quality and production costs within the Dusit Group, seize new growth opportunities and develop new sources of recurring revenue in the food sector. It will serve as a springboard to develop Port Royal’s OEM model to provide new B2B (Business to Business) services and expand Bonjour Bakery’s franchise business nationally and internationally.
As part of the acquisition, Dusit Foods, Port Royal and Bonjour Bakery Asia will establish a new joint venture named Bonjour Bakery Asia Company Limited to maximize synergies and drive sustainable growth.
“This strategic acquisition is the latest significant development in the continued evolution of our food business,” said Ms. Suphajee Suthumpun, Group CEO, DUSIT. “Following our previous investment in NR Instant Produce Company Limited (NRF), which we sold with excellent returns as part of a strategic divestment when NRF was listed on the Stock Exchange of Thailand, we knew we had to reinvest in the food manufacturing side to achieve our vision of standardizing our products and optimizing production costs for our food business as a whole.So when the opportunity to invest in Port Royal and Bonjour Bakery arose , we didn’t hesitate. Not only will this investment help us meet the aforementioned objectives, but it will also open many doors for potential growth – internal, external, national and international – and ultimately bring new streams of recurring revenue to our enterprise. ”
Ms Suthumpun said Port Royal’s state-of-the-art facility in the East Coast Industrial Zone (Rayong), equipped with the latest cooking technology, together with its team of seasoned professionals and established logistics and distribution network were key elements of DUSIT’s decision to invest.
“As well as using state-of-the-art technology for maximum efficiency, Port Royal’s distinguishing feature is its experienced team that specializes in designing flexible production processes that can be easily adjusted and scaled,” said Ms. Suthumpun. “Port Royal’s comprehensive logistics network also ensures that goods can be distributed quickly and efficiently to B2B customers nationwide, providing excellent growth potential.”
To scale up the investment and leverage the capabilities of Port Royal and Bonjour Bakery, Ms Suthumpun said DUSIT will focus on three key areas – 1. Product standardization and cost optimization, to support other businesses within DUSIT, including but not limited to hotels and restaurants 2. Seize growth opportunities, by capitalizing on Port Royal’s expertise and advanced manufacturing processes to create new high-end recipes and develop OEM services for B2B customers; and 3. Recurring income, expanding the Bonjour Bakery franchise model in Thailand and abroad and improving the marketing experience to cover all segments (B2C).
“With normal life resuming and economic activities on the rise, we see huge potential for growth in the food industry, and we look forward to maximizing our investment in Port Royal and Bonjour Bakery for the benefit of all stakeholders.” , said Ms. Suthumpun. “In line with our group-wide strategy of balance, expansion and diversification, we will also continue to seek opportunities to grow, complement and optimize our existing operations to generate growing returns across all of our activity area.”
DUSIT’s past investments in the food sector include Epicure Catering Company Limited, a leading provider of quality food services for international schools in Southeast Asia; The Caterers Joint Stock Company (The Caterers), a leading catering company for schools and events in Vietnam; and KAUAI, a global chain of healthy restaurants from South Africa that entered the Thai market through a joint venture with Dusit Foods.
