Thai Union Group has unveiled a new business roadmap dubbed “Strategy 2030” that it said will double its earnings in the next six years.
Thai Union recently released its Q3 2024 results, revealing better margins and an all-time-high gross profit margin. That result was in part thanks to the company’s divestment of its minority share in Red Lobster, which dragged on the company’s finances since Thai Union first invested millions into the company and later acquired it outright in 2020 as part of a consortium.
Now, the company said it plans to continue that positive trajectory and has aspirations to reach USD 7 billion (EUR 6.6 billion) in sales by 2030 – up from the USD 3.9 billion (EUR 3.7 billion) in sales it is projecting for 2024. It also said it will boost its EBITDA by 100 percent from USD 400 million (EUR 378 million) to between USD 700 million and USD 800 million (EUR 662 million and EUR 757 million) within the next six years.
“The world today faces unprecedented shifts, from geopolitical pressures and rising inflation to rapidly evolving consumer demands. In the face of these challenges, Thai Union is seizing the opportunity to turn the tides and achieve greater success,” Thai Union President and CEO Thiraphong Chansiri said.
Thai Union Group Chief Strategy and Transformation Officer Paul Herholz said Strategy 2030 will be built on three separate strategic pillars to leverage both organic and non-organic growth.
“Strategy 2030 is more than just a roadmap. It’s our catalyst for sustained, long-term growth,” Herholz said. “For our strategy to generate true value, we have identified critical enablers we must execute in order to lay strong foundations for continued success.”
The first pillar, “revitalizing the core,” will focus on Thai Union’s primary business categories – branded ambient seafood, chilled seafood, and feed – to generate the cash flow it needs to expand in new growth areas.
Thai Union said the second pillar will be “driving the next wave of growth” through focusing on fast-growing business categories like pet care, frozen, culinary, and ingredients which it said will continue to drive profitable growth through 2030.
The final pillar, “exploring new frontiers,” will focus on new technologies and ideas like new aquaculture ecosystems or alternative proteins, which it said will help it fuel growth from 2030 onward.
Thai Union said to help build on those pillars and reach its goal it has outlined what it calls six critical enablers, including optimizing its manufacturing and driving strategic procurement, increasing the company’s digital capabilities, commercializing its sustainability efforts, leveraging innovation, and “aligning the organization and driving talent initiatives.”
Also included in Thai Union’s Strategy 2030 are two initiatives it has dubbed Project Tailwind and Project Sonar.
The company said Project Sonar is a general initiative across the company targeting USD 75 million (EUR 71 million) in annual savings from 2026 onward.
“Project Sonar will aim to create a robust operating model aligned with Strategy 2030, building new capabilities in procurement and operations for optimum efficiency and scale, as well as stepping up digital capabilities to further support business growth and gear up for a full digital transformation,” Thai Union said.
Project Tailwind is more specific and focused on Thai Union’s PetCare category. In Q3 2024, PetCare achieved a gross profit margin of 30.6 percent, and increased its sales by 15.4 percent year over year. Thai Union said Project Thailand aims to achieve USD 50 million (EUR 47 million) in annualized operating profit for the pet care segment starting in 2027.
“This will be achieved by establishing insights-driven commercial practices, while building capabilities and boosting productivity in procurement and manufacturing,” Thai Union said.
In the meantime the company’s subsidiary i-Tail Corporation – which underwent an IPO in 2022 – will continue to grow through mergers and acquisitions with an overall goal of tripling revenue to USD 1.5 billion (EUR 1.4 billion) by 2030.
The company said its transformation projects have already been launched. The opening of an innovation hub in Wageningen, Netherlands, marked the start of its innovation projects, and the company said it has also invested in its ambient brands, worked to optimize its manufacturing, and expanded its digital capabilities globally.
