Innovation and Technology
The Company recognizes the importance of driving development and advancing new ideas, by promoting the integration of technology and innovation into its business operations, in order to improve efficiency and develop new products, services, and business models. This includes developing social and environmental innovations that meet the needs of stakeholders in the business supply chain while preventing an environmental impact. This approach is a critical factor for differentiating the business and enhancing the Company’s competitiveness in alignment with its strategies.
Corporate Innovation Management Guidelines and Related Policies
The Company aims to foster corporate innovation and implement technology across the organization by establishing corporate innovation management as a key component of its sustainability development policies. This focus on creating innovation to enhance business operations, meet stakeholder needs, consider social and environmental impacts in alignment with sustainable development goals. Furthermore, the Company has set corporate innovation and technology as one of its primary strategies, established a working team to drive corporate innovation, and appointed a committee to oversee its activities to ensure effectiveness and the achievement of set goals.
The medium-term and long-term strategies for innovation development are established to ensure sustainable corporate innovation development as follows:
- Focus on continuously fostering corporate innovation within the organization, with the goal of expanding innovation externally through collaboration with educational institutions and the private sector. This approach aims to create an ecosystem that maximizes benefits for both the organization and its stakeholders.
- Establish knowledge management as a source of ideas and guidelines for innovation development among employees.
The Company has established a mechanism to drive innovation that reaches employees at all levels through communication and training. This includes organizing development projects to improve work processes and creating innovative work through ongoing support of innovation contests among employees. The KCG Innovation Contest Project has been running continuously since 2016. This project provides a platform for employees throughout the organization to showcase their innovative and creative work, which is then presented directly to senior executives and all employees throughout the organization. This was achieved to foster a corporate culture that delivers maximum benefits to the organization by creating innovations in new products, processes, services, business models, and generating economic value added for the Company.
Innovative projects are divided into two categories: “Creator” and “Innovation.” “Creator” refers to initiatives that have not yet been implemented to benefit the organization, while “Innovation” refers to innovative projects that have already been implemented and have added value to the organization.
The number of employees participating in the innovation contest has steadily increased each year. For instance, in 2019, 59 projects were entered into the contest; in 2022, 66 projects were entered; and in 2023, 75 projects were entered. Among them, 49 projects in the ‘Innovation’ category contributed value added and benefits to the organization, while 26 projects in the ‘Creator’ category originated from creative ideas.
The KCG Innovation Contest 2024, themed “Think Green, Think Digital, Innovation Beyond Tomorrow,”
opened for applications between December 2024 and January 2025. The competition results will be announced in March 2025. This year, sustainability benefits and technology integration are included in the judging criteria.
This aims to incorporate technology into creative ideas, extending effective innovations while emphasizing the importance of environment and society.
The Company has established a Research Development and Innovation Department responsible for researching and improving product quality to meet customer needs and adapt to changing consumer behaviors. For example, the Company develops products that promote health by displaying nutritional information on the product labels as an alternative approach to health promotion for consumers. In addition, the Company established the KCG Excellence Center, which focuses on research and product development and collaborates with specialist consultants in dairy products to develop high-quality products and models that meet customer needs, while also creating new menu options that consistently align with customer demand.
Key Innovation Performance Results
The Company has developed innovation and technology in the organization as follows:
Festive Return Hamper 2024 Project
This project is categorized as a business model creator, aimed at transforming traditional New Year’s gift baskets into eco-friendly hampers that are good for the heart and the planet. The project introduced hampers made from 100% biodegradable paper, which can be either sold or recycled after each use to reduce waste and minimize environmental impact. This was a collaborative effort between the purchasing department, research development and innovation department, along with packaging suppliers. The project offers an alternative for customers seeking ecofriendly products and packaging. It has received positive customer feedback, generated sales revenue during the festive season, and contributed to reducing greenhouse gas emissions , resulting in sales volume of 1.16 million baht in 2024
New Product Innovation Projects
at adjusting products to meet changing consumer behavior and needs, which continually benefits the organization by increasing sales channels and sales In 2024, the annual sales from new product innovation and Health and nutrition products was approximately 342.5 million baht for the company, with key project examples as following:
DAIRYGOLD Cheese Slices, 2 Slices – The marketing department collaborated with the research development and innovation department to launch cheese slices packaged in convenient 2-slice portions for 19 Baht. This affordable price, which is available through convenience store channels, is suitable for a variety of lifestyles. The product can be enjoyed with instant noodles, which is consistent with the popular Korean food trend among modern teenagers and can generate continuous sales for the Company.
IMPERIAL Danish Cookies – New Size. This collaboration between the marketing department and the research development and innovation department aimed to expand the reach of the popular Red Tin Cookies, traditionally enjoyed during festivals and special occasions. The cookies are now available in a new, smaller packaging, sold through convenience stores. This innovation targets a new generation customer base, particularly teenagers
Imperial Gold Selection It is a redesign of the Imperial Cookie packaging, transforming it from the iconic red tin to a more modern and premium look that aligns with contemporary trends. The focus is on the premium butter and carefully selected ingredients sourced from various countries, crafted into cookies with a variety of flavors and styles. Under the concept ‘A new deliciousness that is unique... making you fall in love with every bite,’ the goal is to expand the customer base to include the youth segment. It is perfect for both personal consumption and as a gift for any special occasion throughout the year, not just limited to festive seasons.
Product Development for Health & Nutrition
The Company is dedicated to developing high-quality products that promote health and nutrition with customer responsibility. The Company researched and developed health-promoting products for consumers with health conditions as well as for the health-conscious.
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Product groups for consumers with health conditions include:
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Product groups for consumers with health-conscious include:
Key Projects of Innovation and Technology
More information on other highlighted innovation and technology projects is available in the KCG Sustainability Report 2024.
Sustainability Performance Data 2024 - Governance and Economic performance