Kikkoman to make Del Monte products in Thailand
Wednesday, November 24, 2004 at 09:50 JST
TOKYO � Kikkoman Corp plans to spend over 1 billion yen to build a plant in Thailand to produce processed food products bearing the Del Monte brand, the Nihon Keizai Shimbun reported Wednesday.
The business daily said Kikkoman, the world's largest soy sauce brewer, will set up a joint venture with two Thai firms in December before building the factory in Trat Province. The new company will be based in Bangkok and sell processed fruits and vegetables to China and Southeast Asia, the report said. (Kyodo News)
BANGKOK, Nov 2 (Reuters) - A Thai unit of Fresh Del Monte Produce Inc. (FDP.N: Quote, Profile, Research) will make a tender offer to take over Thailand's Siam Agro Industry Pineapple & Others (SAIC.BK: Quote, Profile, Research) (SAICO) at 0.50 baht ($0.012) per share, Siam Agro said.
The news sent SAICO shares down sharply when they resumed trading on Nov. 2 because the offer price was 92 percent lower than their last close at 5.90 baht on Oct. 22, when they were suspended due to news of the offer.
At 0315 GMT, SAICO shares were down 1.60 baht, or 27 percent, at 4.30 baht in very thin turnover which analysts said exaggerated the movement. The overall Thai stock market was up 1 percent.
Del Monte Fresh Produce (Thailand) Inc., a unit of the U.S. distributor of fresh fruit and vegetables, would buy 14.99 million SAICO shares, or 50 percent, from minority shareholders for 7.5 million baht, SAICO said in a statement.
The Thai Del Monte unit already owns the other 50 percent.
The stock exchange said it allowed SAICO shares to move 100 percent up or down from their last traded price because the tender offer price was outside the normal 30-percent limit. ($1=40.96 baht)
Siam Agro Industry Pineapple and Others Public Company Limited (The). The Company's principal activities are the manufacture and distribution of processed tropical fruits. Its core products are derived from processing of fresh pineapple and consists of canned pineapple, aseptic pineapple juice concentrate, aseptic pineapple single strength juice and aseptic pineapple crush. The Company also produces other kinds of tropical fruit products such as canned mixed fruit, pink guava puree and passion puree. Its main brands are SAICO and Del Monte.
well on this subject we agree.
BTW I reviewed my previous post and had, for some unknown reason, intended to talk about cholesterol instead of carbohydrates. It is cholesterol that has a correlation to heart problems, but has not had any real explanation as to how it causes the problems. I think I've now had a major brain fart on every board i post on.
CQB: In the company's core European markets, which include the 25 countries of the European Union, Norway, Iceland and Switzerland, Chiquita's average banana prices rose 13 percent on a U.S. dollar basis in the first two months of the 2004 fourth quarter, compared to the same period a year ago. On a local currency basis, prices in those same markets rose 5 percent from a year ago. The volume of bananas the company sold in its core European markets rose 1 percent overall in the first two months of the quarter, compared to the same period a year ago, even though volume fell 16 percent in the 10 new E.U. countries, reflecting the impact of the new quota system implemented in May 2004.
W EU stole the production under the current regime from E EU. I do not believe that the current studies have adequately defined consumer behavior.
Thats because nobody has proven a link between carbohydrates and heart problems. There is a correlation, but if you read the studies, there is no explanation as to why carbohydrates cause heart problems....
As for Europe, their demographics are changing, and so their tastes may change as well. Right now they are experiencing a huge influx from the middle east; it will be interesting to see if this changes the market.
I've noticed this comment twice from you...
"My limited experience with Europe would make me believe that bananas will never have the appeal there they do in the US."
Why?? What makes you think that bananas will never have the same appeal?
In 2003 the EU 10, with 70 MM inhabitants, consumed 560 Mton (8 kg pc).
For the last 8 months of 2004 the quota is 300 Mton (460 Mton on annual basis). This quota is very narrow and explains the shortage of import licenses these weeks, with historical high banana prices in the EU 25.
I repeat the consumption of bananas is not elastic and although banana prices in EU 10 increased with 50%, the demand will be similar as in 2003.
It is a pity for you that FDP bought the wrong company in Poland and sold already the Weichert participation.
Take out the UK, Ger, & Sweden. Where is the EC with regard to banana consuption?
Maybe these are the countries that are skewing the data? I have no problem with paying a market price for a banana, but the quickest way to raise the price in the US is to increase the market demand in the EC.
You are wrong to believe that EC consumption of bananas would increase 30% if the tarriffs were removed.
Banana consumption is not elastic.
Following FAO the EU (380MM inhabitants) consumed in 2003 4100 MMton equal to 10.8 kg pc.
The US (293 MM plus 7MM illegals)imported (consumed and dumped in the garbage)during the same year 3443 MMton equal to 11.5 kg pc. This while the retail price was 40% lower.
My advice pay a decent price for a pesticide free banana and dump less. It will be good for the trade deficit.
Or eat a Washington apple.