An export deal between Coles and Thai retailer, Central Food Retail (CFR), will provide Australian producers with an expanded footprint into Asia, as more than 200 Coles Own Brand products will be distributed through the Thai chain.
The deal was announced at a Taste of Australia event in Bangkok, with Coles showcasing its Australia-made range of baking goods, biscuits, butter, cheese, chips, coffee, honey, nuts, muesli, and spreads.
Austrade senior Trade and Investment commissioner in Bangkok, Michael Helleman, said Thai people, Australian tourists, travellers, and expats who have a longing for tastes of home will have access to Australian-made food and drinks.
“Australia has a hard-earned and deserved reputation for clean, green, safe and reliable agricultural produce and food products, and it is very clear there is a growing appetite for these items in Thailand,” Helleman said.
GlobalData consumer research in Q4 FY22 found around 30 per cent of Thai respondents typically bought foreign/global multinational brands when it came to bakery, cereal, and morning food products.
GlobalData consumer analyst Bobby Verghese said Thailand was one of the biggest food and beverage markets in Asia.
“Rapid urbanisation, the rise of the upper and upper-middle classes, and the growing health and wellness trend have catalysed the demand for high-quality, healthy, clean-label, and sustainable food and beverages imported from North America, Europe, Japan, and South Korea,” Verghese said.
Coles said it had been exporting high-quality Australian food for more than 20 years to around 30 countries, but with a focus on Asia. The retailer said it would leverage CFR’s strong online and offline presence in Thailand and its expansion plans into other South-East Asian markets including Malaysia, Singapore, and the Philippines.
“Austrade has been supporting Coles in Thailand since 2019, with introductions to buyers for their fresh produce, meat, and grocery products. In 2021, Austrade facilitated the introduction to Central Food Retail and it’s great to see more Australian products making their way into Asia with the help of Austrade,” Helleman said.
Key account director at GlobalData Singapore, Tim Hill, said the reduced tariffs on beef and dairy products under the ASEAN-Australia-New Zealand free trade agreement (FTA) and the Thailand-Australia FTA gives Australian producers a competitive edge.
“Australian brands and private labels are joining the race, targeting the largest food and beverage categories: fish & seafood, dried food, meat, dairy & soy food, spirits, and soft drinks.
“Coles and other retailers will leverage their inherent strengths in the prepared meals, syrups & spreads, meat substitutes, and wines categories, which GlobalData projects will be the fastest-growing categories in the Thai food and beverage sector over 2023-27,” Hill said.
Verghese added that as the Thai economy recovered from the pandemic, domestic demand for premium imported food and beverages was set to boom.
“Australian food and drink manufacturers can leverage indigenous superfoods, such as manuka honey, lupin beans, and Kakadu plum, to address the rising demand for novel and better-for-you consumption experiences among Thai Millennials and Gen Z.
‘While high inflation can undermine domestic demand for high-end imports in the short term, the impact will be cushioned by the revival in international tourist inflows, and the resurgence of the Thai foodservice sector,” Verghese said.
The Coles Own Brand products for export include:
- Coles Breakfast range – including Coles Urban Coffee Culture, Coles Honey, Coles Muesli and Coles Spreads (e.g. Almond Butter);
- Coles snacking range – including Coles Ultimate Biscuits, Coles I’m Free From Biscuits, Coles chips and nuts;
- Coles baking range – including Coles Wholemeal Plain Flour, Coles Chocolate Brownie Mix; and
- Coles chilled range – including Coles cheeses and butter.
