April Bakery grits its teeth and does not increase prices despite rising costs, targeting 1 billion baht in sales this year

Mrs. Kanokkan Mathuraporn, President and CEO of Singha Foods Industries (Thailand) Co., Ltd., owner of the April Bakery brand, revealed that the company confirms that it will not increase product prices even though product costs have been continuously increasing, especially for some ingredients such as chocolate, whose prices have increased by 400%, while sugar and other ingredients still have prices that fluctuate according to the situation.

This is because it has not been significantly affected. After seeing the upward trend in chocolate prices, it has managed by purchasing large blocks in advance until the end of this year, so it can still manage costs and does not want to adjust prices that would affect consumers. The company itself has not adjusted product prices for 5 years because it wants to increase the burden on consumers. However, if necessary, it may have to reduce the size of the products, but will still sell at the same price. We will have to reconsider.

In addition, it is currently developing a cocoa plantation by investing in purchasing over 10 rai of land to grow organic cocoa in Mae On District, Chiang Mai Province, with an investment budget of over 10 million baht to use as ingredients for baking. It is expected that the results will begin to be seen by the end of this year.

“We have to admit that since the beginning of last year, sales have not been good due to the economic situation and declining purchasing power. However, the company has adjusted by finding new products and choosing to develop fashion products such as Dubai chocolate at affordable prices to sell at the end of the year in 7-Eleven stores. It has been very successful and has helped the company achieve its annual sales target of 11% growth or 630 million baht in sales, while product sales have increased from the usual 50,000-70,000 pieces per day to 180,000 pieces per day.”

Mrs. Kanokkan said that this year, the company is confident that it will be able to achieve 1 billion baht in sales for the entire year. Currently, it can still generate sales of 90 million baht per month. If sales are not maintained at this level until the end of the year, it will be able to achieve this year’s target. The top 3 products with the highest sales are Dubai chocolate, smashed cake, and salted egg lava mooncakes. There is a plan to develop new products, especially fashionable bakery products, to accommodate the trend of Dubai chocolate, which will decrease in the future.

However, the company’s current product distribution channels Will pass through 7-Eleven stores, more than 14,000 branches, with a sales proportion of 80%. The rest will be April Bakery branches, with 40 branches, and sell through coffee shops, cafes, another 100 branches.

Reference website: www.khaosod.co.th

April Bakery grits its teeth and refuses to raise prices despite rising costs, targeting 1 billion in sales this year