Issue 65

Expertise in coconut has helped a Thai SME win health-conscious consumers’ hearts with its health and beauty products.

Adding value to local agricultural products has become one of Thailand’s major strategies to stay competitive in the present world trade market, and Tropicana Oil has proved it works well.

“Agricultural products are Thailand’s strength. With good research and development (R&D), we can get the utmost benefit out of them and create new value-added products for consumers,” says Suradej Ninek, managing director of Tropicana Oil, who has successfully turned his OTOP (One Tambon One Product) business into one of the most famous Thai brands in overseas markets.

Ninek established the company in 2003, to conduct research and develop 100% cold pressed virgin coconut oil, Tropicana Oil’s first product.

“Combining local wisdom from my hometown in Surat Thani province with advanced technology, we can produce virgin coconut oil with a unique scent that is easy to use and drink for good health,” he explains.

According to the data from the Centre for International Trade Studies, University of the Thai Chamber of Commerce, the value of Thailand’s coconut and coconut product exports amounted to approximately US$321 million (11.2 million baht) in 2015. Around 60% of this was from coconut milk exports to the US, the UK and Australia, followed by coconut oil exports to Japan and South Korea, fresh coconut to China, the UAE and Hong Kong, and canned coconut water to the US and Australia.

Having started with a single product under the Tropicana Oil brand, Ninek now offers a wide range of products under three different brands based on its category and target consumer, such as Tropicana Oil health and beauty products for mass consumers, Kalapa premium beauty solutions and Rain&Shine cooking oil.

“We continue to improve and develop our products and educate our customers about the benefits of coconut, the company has allocated around 5% of total spending on R&D annually,” he says. “Our products have received standard certifications from established organisations worldwide including the Thailand Trust Mark (T Mark), which is a symbol of excellence and trusted quality. These help us to expand business abroad more easily.”

Currently, the company exports products to 16 markets including Japan, China, Hong Kong Australia, New Zealand, Russia and New Zealand. Ninek has set the goal for Tropicana to become a global brand in 2018. To reach this target, the company has focused on improving its human resources and developing products to meet the demands of global consumers.

“We will introduce our new logo and packaging later this year,” he says. “We are going to expand our business in Europe and the Middle East where we have seen the potential but not yet sold our products.”

For more information, visit www.tropicanaoil.com

Words by Somhatai Mosika