'KCG Corporation Public Company Limited' (KCG), a leader in butter, cheese, and bakery ingredients and western food business reveals its leadership strategy in producing and importing quality butter, cheese, and ready-to-eat products worldwide. The Company announces a major business push, setting a strategy to develop new products and innovations to create the pleasure of taste for customers in every meal to suit the lifestyles of modern consumers. KCG plans to expand distribution channels to cover various consumer groups and businesses. The Company is ready to invest in the technology necessary to upgrade its factories and expand production capacity for butter and cheese while focusing on creating sustainable growth.

Mr. Tong Theeranusornkit, Chairman of the Executive Board of KCG Corporation Public Company Limited (the “Company” or “KCG”), reveals that the Company is a leader in the production and distribution of consumer products, including butter, cheese, biscuits, and a variety of food and bakery products. The Company also imports butter, cheese, bakery ingredients, and Western food from many leading brands worldwide. The Company has more than 64 years of experience and expertise in the food industry. The beginning of KCG's Western food business empire came from a limited partnership. Kimchua Panit, having seen an opportunity in the nutritious food business, initiated the import and distribution of butter and cheese products under the Allowrie brand from Australia and Danish butter cookies under the Imperial brand.

In addition to being a leader in butter and cheese production under the main brands such as Allowrie, Imperial, and Dairygold, the Company is also now an importer of leading products from around the world, totaling more than 2,100 items. These provide a delightful taste experience for domestic and international consumers. The Company's mission is to integrate knowledge and experience for innovation development and select quality products from around the world to provide opportunities for new flavors of hygienic and health-conscious foods and create a lifestyle that values sustainable business growth

Dr. Watit Tamavimok, Chief Executive Officer and Managing Director of KCG, said KCG is committed to conduct business under the vision of "becoming a leading company in providing dairy products and gourmet foods and a committed business partner for modern living lifestyles” by providing consumers with products that create delight in the taste of quality food at each meal along with sourcing raw materials and selecting leading brands from all over the world that meet with the lifestyles of consumers of all genders and ages, both in Thailand and around the world. KCG has a goal of becoming a Thailand market leader in the production and import of butter, cheese, and top-quality ready-to-eat products from all over the world.

KCG has high-quality products and a powerful brand that produces innovative food products that are consistent with the constantly evolving lifestyles of consumers under a solid production foundation and an effective cold chain logistics system that enables KCG to distribute products across all channels throughout the country. Currently, KCG has 3 primary product categories:

1. Dairy Products include butter, cheese, and other products processed from milk, such as ready-to-drink milk, whipped cream, cream cheese, and yogurt.
2. Food and Bakery Ingredients are divided into four categories: 1) Food products, consisting of food ingredients such as olive oil, mayonnaise, ready-to-eat food, meat, and seafood; 2) Bakery products, such as cake flour and mixed flour; 3) Concentrated fruit juice products under SUNQUICK, and 4) Bakery and cooking equipment.
3. Biscuit Products consist of cookies, crackers, and wafer products.

Mr. Damrongchai Wipawattanakul, Senior Deputy Managing Director of KCG, said the food industry has much growth potential. Thailand’s rapidly recovering economy and tourism sector after COVID-19 has been positively impacting the expansion of the food service business and food industry. KCG has developed new products and innovations under the Food Product Innovation Center or KCG Excellence Center, which created healthy innovations for consumers, such as Keto products, Butter MCT, and plant-based protein products which resulted in KCG's dairy products being leaders in the market. In 2021, KCG's butter and cheese products had a market share (No. 1 market share) of 55.0 % and 31.6 %, respectively. In addition, in both the bakery and biscuit products groups, KCG's market share is among the top 5 (data from Euromonitor).

The Company has set a strategy to become a leader in Thailand through 4 business strategies:

1) Expand production capacity and bring technology to upgrade the production process. The Company plans to invest in automated machinery for capacity expansion and efficiently manage production costs.

2) Develop new products and innovations. The Company is committed to the research and development of products, including new formulas for dairy and non-dairy product groups, to provide unique, healthy alternative foods that align with the lifestyles of modern consumers. This helps reinforce our leadership in presenting products to the market as a trendsetter.

3) Continuously create strong distribution channels. The Company will expand sales channels through online platforms, including convenience stores and vending machines for B2C consumers, along with upgrading services for B2B customers, such as food service providers, hotel businesses, restaurants, catering businesses operators (HORECA) and industrial food factory operators by providing a complete range of products. This has allowed KCG to expand to overseas markets through distributors. Currently, KCG exports its products to 15 countries worldwide, such as Japan, China, and South Korea.

4) Expand business through mergers and acquisitions (M&A Opportunities). The Company aims to create growth both domestically and internationally through joint ventures or mergers and acquisitions (M&A), emphasizing businesses that have goals, visions, and strategic plans that enhance KCG's potential for growth, such as upstream businesses, which will help strengthen supply chains to achieve efficient cost management and increase competitiveness towards sustainable growth.

Mr. Thawatch Teeranusornkit, Senior Deputy Managing Director of KCG, said that the Company has an investment plan for 2023-2024 to support business growth, including investing in the construction and development of a distribution center and warehouse (KCG Logistics Park) to increase storage and management space that is modern and efficient. There are also plans to expand production capacity at the Theparak Factory by using technology to upgrade the production process and increase the production capacity for cheese products (individually wrapped processed cheese slices) from 2,106 tons per year to 4,212 tons per year by 2023 and will increase butter production capacity from 18,596 tons per year to 23,261 tons per year in 2024 to support growth both domestically and overseas.

KCG also places importance on driving business for sustainable growth by operating according to ESG (Environment, Social, Governance) principles. The Company installed a solar rooftop at the Thepharak Factory in Samut Prakan province. This helped reduce carbon dioxide emissions in 2021 by up to 646 tons per year. KCG also improves the quality of life for the community and society through projects such as food innovation contests that encourage students to create food innovations as well as conduct business by taking into account responsibility towards stakeholders ranging from shareholders, employees, customers, partners, contractors, communities, society, to the environment.