Required Report - public distribution

**Date:** 3/15/2004

**GAIN Report Number:** TH4030

TH4030

**Thailand**

**HRI Food Service Sector**

**Report**

**2004**

**Approved by:**

![](media/image1.wmf)Rodrick McSherry, Agricultural Counselor

U.S. Embassy, Bangkok

**Prepared by:**

Sukanya Sirikeratikul, Agricultural Marketing Specialist

**Report Highlights:**

Thailand is Southeast Asia's second largest economy and its economy has
shown remarkable improvement with forecast growth of 9 percent for year
2004. Thailand imported \$80 million in consumer oriented foods from the
U.S. in 2002, up 22 percent over 2001's \$65 million. The HRI food
service sector comprises approximately 150,000 outlets including some
100,000 restaurants and more than 5,000 hotels and resorts. Thai
consumer expenditure on food at all food service outlets was estimated
to be \$5.7 billion in 2001.

Includes PSD Changes: No

Includes Trade Matrix: No

Annual Report

Bangkok \[TH1\]

\[TH\]

**TABLE OF CONTENTS**

# 

[SECTION I: MARKET SUMMARY 3](#section-i-market-summary)

[Market Overview 3](#market-overview)

[Tourism Industry 3](#tourism-industry)

[Hospitality Industry 8](#hospitality-industry)

[Restaurant Industry 10](#restaurant-industry)

[Catering Service Business 11](#catering-service-business)

[SECTION II: MARKET OPPORTUNITIES 12](#section-ii-market-opportunities)

[SECTION III: ROAD MAP FOR MARKET ENTRY
15](#section-iii-road-map-for-market-entry)

[SECTION IV: BEST MARKET PROSPECTS
15](#section-iv-best-market-prospects)

[SECTION V: CONTACT INFORMATION 16](#section-v-contact-information)

# 

# 

# 

# 

# 

#  

# SECTION I: MARKET SUMMARY

## Market Overview

Thailand is Southeast Asia's second largest economy and its economy has
shown remarkable improvement with growth forecast to be 9 percent for
2004 following growth of 6.3 percent in 2003. Domestic spending and a
rebound in exports bolstered the renewed growth that occurred in 2003.
Higher consumer confidence resulting from falling unemployment and
rising farm and non-farm incomes will boost consumption expenditures,
which will have positive effect on the HRI sector. Per capita income
increased from \$1,831 in 2001 to \$1,992 in 2002. The Baht firmed in
2003, with the baht reference rate averaging 39.90 to the U.S. dollar in
November 2003, considerably stronger than the 43.00 recorded in 2002.
Due to the excess liquidity of Thai banks and financial institutions,
special promotional packages of personal loans and credit facilities are
being introduced to the Thais, especially the low to middle income
segment. This "easier credit" has stimulated the purchasing power of
Thai consumers, changed the buying and consumption pattern, helped
encourage Thai people to eat out more and is pushing, led the growth in
the overall foodservice market.

Thailand imported \$80 million in consumer oriented foods from the U.S.
in 2002, up 22 percent over 2001's \$65 million. Thailand's large HRI
food service sector comprises approximately 150,000 outlets including
some 100,000 restaurants and more than 5,000 hotels and resorts. Hotels,
resorts, restaurants and institutional service are heavy users of
imported food for food preparation and ready-to-eat meals at
restaurants, catering services for airlines and cruise lines. Thai
consumer expenditure on food at all food service outlets was estimated
at \$5.7 billion for 2001.

## Tourism Industry

In general, the tourism industry has recovered since the beginning of
2002 as foreign tourists returned to Thailand. At the same time, this
sector also benefited from the continued efforts of the government to
promote tourism in Thailand. With over 323 billion Baht (US\$ 7.5
billion) in tourism revenue in 2002, representing about 6% of
Thailand\'s GDP, the tourism industry holds an important role in
generating income and growth for the country. Thailand's diverse
geography offers a tremendous range of adventures and activities for
tourists such as diving, sailing, trekking, golfing, cave explorations,
and rock climbing. This helps make Thailand one of the world's most
favorite tourist destinations, with nearly 11 million tourists visiting
Thailand in 2002 (up by 7.3 percent from the previous year). They were
staying longer, too, for about 8 days on average. Average hotel
occupancy rate was 61 percent. Approximately 58 percent of the tourists
came from East Asia, with a large increase in the number of tourists
from neighboring countries, namely Malaysia, Vietnam, Cambodia, Hong
Kong and Korea. Tourists from Europe and the United States showed stable
growth and accounted for 22.77 and 5.98 percent of the total number of
tourists, respectively.

![](media/image2.wmf){width="5.784027777777778in"
height="3.377083333333333in"}

![](media/image3.wmf){width="5.9125in" height="2.2354166666666666in"}

Due to the effect of the conflict in Iraq and the SARS phenomenon, it is
projected that, for the whole year of 2003, foreign tourist arrivals
declined by 10.15 percent to 9.70 million, with total tourism revenue
estimated at 290 billion Baht (\$6.7 billion). However, these arrivals
figures should accelerate again. By the end of 2004 the number of
tourists is anticipated to reach 12 million, an increase of 32.56
percent from 2003. This is due to the continual launch through 2003 and
2004 of various aggressive marketing campaigns by the Tourism Authority
of Thailand that are aimed at promoting the tourism industry of
Thailand. The goal is to turn the country into the tourism hub of Asia
by 2006 by offering a variety of tourist products, emphasizing the
distinctive hospitality of the Thai culture; focusing on eco-tourism as
it develops into a new global trend; and by targeting the youth market
and the luxury, up-scale tourist segment.

![](media/image4.wmf){width="5.995138888888889in"
height="6.017361111111111in"}

**No. of Tourists Arrivals in Phuket 2002**

  --------------- ------------------ ----------------- -------------------
  **Location**    **Thai Tourists**  **International   **Total**
                                     Tourists**        

  Patong          652,168 (56%)      1,300,128 (46%)   1,952,296 (49%)

  Kata            290,592 (25%)      678,244 (24%)     968,836 (24%)

  Karon           259,223 (22%)      550,837 (20%)     810,060 (20%

  Ampur Mueng     189,996 (16%)      773,819 (27%)     960,815 (24%)

  Phromthep       424,208 (36%)      198,194 (7%)      622,402 (16%)
  --------------- ------------------ ----------------- -------------------

![](media/image5.wmf){width="5.995833333333334in" height="6.40625in"}

![](media/image6.wmf){width="5.996527777777778in"
height="6.440277777777778in"}

Thailand has developed into a major convention and incentive destination
for the Asian Region, competing with Singapore and Hong Kong. The number
of arrivals for convention purposes increased from 89,677 in 2001 to
106,853, or by 19.15%, in 2002. During mid-October of 2003, Thailand was
the host country of the Asia Pacific Economic Cooperation (APEC) forum,
which culminates in a summit of heads of state, ministers and chief
executive officers from 22 countries. It is anticipated that this
meeting will induce more investment from other APEC member countries and
generate more business opportunities in Thailand. The plans to establish
the Meeting, Incentive, Convention and Exhibition (MICE) Bureau and new
two convention centers in Chiang Mai and Phuket also help to increase
the competitive advantage of Thailand.

### 

### 

### International Conventions/Meetings in Thailand

  ------------------- ---------- ---------- ---------- ---------- ------------ ------------
                      **1999**   **2000**   **2001**   **2002**   **2003\***   **2004\***

  No of Events        914        1,324      1,066      1,292      1,373        1,469

  \% Change           13.8       44.9       -19.5      21.2       6.3          7.0

  No. of Foreign      77,205     98,895     102,953    114,800    129,657      146,632
  Participants                                                                 

  \% Change           15.2       28.1       4.1        11.5       12.9         13.1
  ------------------- ---------- ---------- ---------- ---------- ------------ ------------

Source: the Tourism Authority of Thailand (TAT)

\* Estimates by TAT

The trend in the Thailand tourism industry in 2004 is expected to show
an increasing growth rate, and the HRI industry in general is expected
to achieve a higher growth rate of approximately 3-5%. The MICE market
is forecast to expand more due to heightened awareness of Thailand's
attractions after the APEC events of 2003, when Thailand was the host of
the regional group for the year.

## Hospitality Industry

The hotel business trend of 2004 is expected to see an increasing
occupancy rate of 8 percent with an expected occupancy rate at 66%.
Bangkok hotels should have a higher occupancy up about 8 percent. The
northern part of Thailand should grow by 6-7 percent due to many
promotional activities by TAT and the arrival of two Giant Pandas loaned
by the Chinese Government for research and display at the Chiang Mai
Zoo. Southern Thailand is predicted to have an occupancy rate of 65-70
percent, mainly in Phuket, Krabi, Koh Samui and Pang Nga. However, the
oversupply of the hotel rooms in Phuket will keep the occupancy rate
level for this province.

![](media/image7.wmf){width="6.648611111111111in" height="5.08125in"}

With a number of leading international hotel chains entering the Thai
market, such as Ritz Carton hotel, Raffles hotel, W brand hotel since
mid 2003, existing hotels are readjusting their marketing strategies by
focusing more on revenues received from food and beverage sales. Room
revenues will be difficult to maintain due to the increase in hotel room
rates, forecast to be approximately 20% higher than year 2003. For the
4-5 star hotels with 400 rooms or more, food and beverage sales accounts
for about 40% of total revenues. It is estimated that the hotel food and
beverage market will grow at least 8-12 percent in year 2004. It is
noticeable that at present the 4-5 star hotels have tried to avoid
rate-undercutting as they realized that it was not only negatively
impact the return on investment but it also hurt their image. It is
anticipated that, at least 5 billion baht (\$125 million) will be
invested by 4-5 star hotels, as most of them will be competing on the
standard and quality of their recreational, meeting and dining rooms.
The entire HRI sector sources about 30-35 percent of their food products
via imports, with the remainder locally produced; the U.S. has
approximately 20 percent of the imported product share. U.S. beef,
fruits, lobster, fish, crab, seasonings, wine etc are well known in the
hotel/restaurant trade and with airline catering companies.

![](media/image8.wmf){width="5.871527777777778in" height="5.85in"}

## Restaurant Industry

The restaurant industry in Thailand continues to show high growth
throughout 2004 in line with the overall economic growth and the higher
levels of Thai consumer confidence, which translates into increased
spending on restaurants and other food services.

Restaurant Businesses in Thailand can be divided into three categories
as follow:

1\. [Quick Service Restaurant]{.underline} It is estimated that the
total market value for this business segment is estimated to be around
U.S.\$375-500 Million. The market is mainly dominated by the franchising
businesses, which are chicken (40%), burger (20%), pizza (15%), ice
cream (10%), and others (15%). The examples of QSRs currently operating
in Thailand are KFC, McDonalds, the Pizza company, Pizza Hut, Burger
King, Dairy Queen, A&W, Chester's Grill, Subway, etc. At present, the
QSR sector in Thailand has encountered some effects from the consumer
trend towards more healthy products as most Thai consumers perceive that
fast food products contain less valuable nutrition than ordinary Thai
food. In addition to this, the growth of the QSR restaurant segment has
also been hindered by the expansion of local SMEs restaurants (see
below) into hypermarkets and department stores.

**Growth of the Thai Quick Serve Restaurant Market (2003-2005)**

  -------------------------------- ------------ ------------ ------------
                                   **2003**     **2004**     **2005**

  Restaurant Sales (Mil. U.S.      5,750        6,095        6,461
  Dollar)                                                    

  QSR Market Size (Mil. U.S.       338          371          408
  Dollar)                                                    

  QSR Market Share (%)             5.9          6.1          6.3
  -------------------------------- ------------ ------------ ------------

Source: Industry estimates

### 

### Comparative Market Share in the Thai QSR Market

+----------------------+--------+-----+--------+-----+--------+-----+
| **(Revenue in Mil.   | **     |     | **     |     | **     |     |
| U.S. Dollar)**       | 2000** |     | 2001** |     | 2002** |     |
|                      |        |     |        |     |        |     |
|                      | (\$    |     | (\$    |     | (\$    |     |
|                      | 1=Baht |     | 1=Baht |     | 1=Baht |     |
|                      | 40.16) |     | 44.48) |     | 42.96) |     |
+----------------------+--------+-----+--------+-----+--------+-----+
|                      | **Rev  | *   | **Rev  | *   | **Rev  | *   |
|                      | enue** | *(% | enue** | *(% | enue** | *(% |
|                      |        | )** |        | )** |        | )** |
+----------------------+--------+-----+--------+-----+--------+-----+
| Pizza                | 35     | 1   | 39     | 1   | 53     | 1   |
|                      |        | 2.6 |        | 4.2 |        | 7.3 |
+----------------------+--------+-----+--------+-----+--------+-----+
| Chicken              | 117    | 4   | 112    | 4   | 117    | 3   |
|                      |        | 2.1 |        | 0.7 |        | 8.2 |
+----------------------+--------+-----+--------+-----+--------+-----+
| Hamberger            | 49     | 1   | 50     | 1   | 52     | 1   |
|                      |        | 7.6 |        | 8.2 |        | 7.0 |
+----------------------+--------+-----+--------+-----+--------+-----+
| Ice Cream            | 29     | 1   | 29     | 1   | 33     | 1   |
|                      |        | 0.4 |        | 0.5 |        | 0.8 |
+----------------------+--------+-----+--------+-----+--------+-----+
| Other (incl.         | 48     | 1   | 45     | 1   | 51     | 1   |
| Sizzler)             |        | 7.3 |        | 6.4 |        | 6.7 |
+----------------------+--------+-----+--------+-----+--------+-----+
| Total Market         | 278    | 10  | 275    | 10  | 306    | 10  |
|                      |        | 0.0 |        | 0.0 |        | 0.0 |
+----------------------+--------+-----+--------+-----+--------+-----+

Source: Ministry of Commerce and industry estimates

2\. [International/High-end Restaurant]{.underline} The sector that
occupies the highest growth in restaurant industry with the market value
not less than U.S.\$ 250 Million.

3\. [Small Restaurant (SMEs-Small Medium Enterprises]{.underline}) Most
of new entrepreneurs who want to have their own restaurants will first
enter into this market as SME-type restaurants due to the low initial
investment required to start up this type of business. The industry
estimates that the market size for this sector will be greater than
U.S.\$ 250 million in 2004.

**Income and percentage of food consumption**

  ------------------------ --------------- ---------- ---------- ---------- ----------
                           **Units**       **1999**   **2000**   **2001**   **2002**

  Per capita income        **\$/capita**   1,986      1,958      1,831      1,992

  \% of disposable income  **Percent**     33.3       32.2       33.9       33.6
  spent on food                                                             

  \% spent eating out      **Percent**     6.3        7.0        7.4        7.7
  ------------------------ --------------- ---------- ---------- ---------- ----------

The increasing numbers of new restaurants and their popularity among
consumers have taken market share from the hotels' F&B outlets. General
restaurants have been replaced in the market by restaurant chains such
as S&P, Black Canyon, MK Suki, Seefah restaurant, Oishi, Fuji, Zen, etc.
Currently, Thailand possesses over 1,000 fast food branches nationwide
(KFC has 395 outlets, McDonalds 100, MK Suki 164, The Pizza Company 156,
Pizza Hut 143, S&P 50, S&P Bakery Shops 97, Chester's Grill 90, Burger
King 16, Sizzler 23, Auntie Anne's 36, Swensen's 96, Dairy Queen 155).
Fast food products are made available in an increasing number of outlets
and have become more popular as nowadays most Thai consumers can
purchase lunch boxes, burgers, hot and cold drinks and ready-to-eat
foods in convenience stores or supermarkets near their workplace or
home. Recently, the growth of fast food outlets has decreased, mainly
due to the change in Thai consumers' eating habits to include more
health and ethnic cuisine. Japanese foods are emerging as a popular type
of foreign food in Thailand, while Japanese culture is widely
appreciated and adopted among Thai teenagers. Since Thai consumers
tended to eat less beef, many burger chains have diversified their menus
to include chicken, fish, and vegetables to accommodate local tastes.

## Catering Service Business

The Thai catering market has become increasingly concentrated and
competitive among hotels and the restaurant sector. Catering businesses
are ranged from small to large-scale businesses and are categorized into
four categories: contract caterers (Compass Group, F&B International
Co.), airline and exhibition caterers (Thai Airways International Plc.,
Siam Flight, Gate Gourmet (Thailand) Ltd., BITEC, Impact Arena), hotels
and medium-high end restaurants, and local small caterers. It is
estimated that there are more than 200 local caterers, which are managed
by owner-proprietors and family members provide catering services
focused only on clients in some particular geographic area and some
special functions such as local wedding ceremonies, birthday parties,
seminars, as on new house ceremonies, etc.

Some of the medium-sized catering services infrequently import directly,
usually purchasing through recognized and established importers and
distributors. The target groups of the contract catering services in
Thailand are the customers at workplaces, ranging from employee
restaurants to executive dining. These clients include local, national
and international organizations; military services; hotels; hospitals;
office buildings and airlines. Hospitals, office buildings, and large
factories are providing more cafeterias or food court for their staff
and customers. These contract-catering services use both local and
imported food products, depending upon their customers' requirement.
Approximately 10 percent of these menus use imported products such as
french fries, beef, salmon, lamb, sauces and seasonings, cheese, fresh
fruits, seafood, turkey, and a variety of beverages. For Thai Airways,
which is a government enterprise, it has to comply with the government's
objective of promoting Thai products. Thai Airways, Siam Flight and Gate
Gourmet use approximately 20 percent of imported food for their airline
catering service.

![](media/image9.wmf){width="6.25in" height="3.8472222222222223in"}

# SECTION II: MARKET OPPORTUNITIES

-   Thailand, covering 198,114 square miles, is situated in the heart of
    Southeast Asia and is considered the gateway to Indochina. Thailand
    borders Laos in the north and northeast, Burma in the north and
    west, the Andaman Sea in the west, Cambodia and the Gulf of Thailand
    in the east, and Malaysia in the south. There is a population of
    63.5 million at the end of 2002. Theravada Buddhism is the national
    religion and is actively practiced by about 95% of Thais, with the
    remainder practicing Islam, Christianity, Hinduism and other faiths.
    About 51.83 million Thais are over 13 years old and approximately,
    31.14 million are male.

-   The size of the work force now exceeds 34 million, with the majority
    of the workforce under 30 years of age.

-   The minimum wage in Thailand is currently 169 baht per day
    (US\$3.93) in Bangkok, and between 133-168 baht (US\$3.10-3.91) per
    day in other provinces.

**Minimum Daily Wage**

  ---------------------------------------------- -------------- ------------
  **Provinces**                                  **Baht/Day**   **\$/Day**

  Phuket                                         168            3.91

  Bangkok, Samut Prakarn, Pathum Thani, Nakhon   169            3.93
  Pathom, and Samut Sakhon                                      

  Nontaburi                                      167            3.89

  Chonburi                                       150            3.49

  Saraburi                                       148            3.45

  Nakonratchasima                                145            3.38

  Chiang Mai, Phang Nga, and Ranong              143            3.33

  Rayong                                         141            3.28

  Phra Nakhon Si Ayutthaya                       139            3.24

  Krabi and Ang Thong                            138            3.21

  Chachoengsao, Lamphun and Sukhothai            137            3.19

  Khon Kaen, Buriram and Phetchaburi             136            3.17

  Kanchanaburi, Kalasin, Kamphaeng Phet,         135            3.14
  Chantaburi, Chumphon, Chainat, Trad, Nakhon                   
  Panom, Narathiwat, Prachin Buri, Phetchabun,                  
  Ratchaburi, Songkla, Singbusi, Surat Thani,                   
  Nong Bua Lumphu, and Uthai Thani                              

  Nakhon Nayok                                   134            3.12

  The rest of the country                        133            3.10
  ---------------------------------------------- -------------- ------------

Source: Bank of Thailand (\$1 = 42.96 Baht)

-   Given the economic importance of the Thai restaurant, hotel and
    catering services sector, this sector represents a good potential
    for U.S. products.

-   Literate population due to comprehensive schooling, increased
    overseas studies, international travel, access to internet and cable
    TV;

-   Over 10 percent of total population lives in Bangkok, which accounts
    for 90 percent of the sales of fast moving consumer goods;

-   Most of medium and high-income people live in the major cities,
    including Bangkok, Phuket, Chantaburi, Chiang Mai, Chiang Rai,
    Chonburi, Hat Yai, Khon Kaen, Nakorn Ratchasima, Pattaya,
    Petchaburi, Ratchaburi, Samui Island, Surat Thani, Ubon Ratchatahni
    and Udon Thani;

-   A stable and stronger Baht in 2003 led to an increase in imported
    consumer-oriented food products from the U.S;

-   Over the past few years, Thais living in urban areas are relatively
    brand conscious and their shopping behavior has moved away from the
    traditional open-air wet markets to modern supermarkets and shopping
    centers which offer them convenience and a wide selection of
    products in a modern experience;

-   High growth in the number of hotels, resorts and other tourist
    accommodations continues to lead to an increase in the number of
    imported food items to support more tourists;

-   Hotels and international restaurants play an important role in
    increasing consumer awareness about U.S. products, which may not be
    commonplace in the retail market e.g. certain types of seafood, etc.

-   Changing eating habits of Thais are helping to grow the restaurant
    business in Thailand. Consumers are now eating out more frequently,
    whenever they want to.

-   Upper and middle-income groups in Thailand like to spend money on
    food, especially during the holidays, and also for daily
    consumption. Consumption of imported food products peak during New
    Year, Christmas, Chinese New Year and the Thai New Year seasons as
    gifts of food are given, especially consumer products such as
    coffee, tea, milk, snack food, jelly, jam, crackers, nuts, fruit
    juice, wine, beer, whisky, health food and fresh fruit;

-   Continuous increases in the number of health-conscious consumers is
    leading to higher demand for health and functional food and drinks;

-   Thai consumers view U.S.-origin foods and beverages as high quality
    and consistent products, for instance: U.S. beef, french fries,
    dried and fresh fruit, nuts, fruit juice, jams, and other products
    are always rated by local consumers as the best in the world.
    However, this perspective does not apply to all U.S. products as
    some local consumers still prefer wine from France, for example.

**Advantages and challenges facing US products in Thailand**

+-----------------------------------+-----------------------------------+
| **Advantages**                    | **Challenges**                    |
+-----------------------------------+-----------------------------------+
| \- Many varieties of superior     | \- U.S. exporters don't know much |
| U.S. high quality agricultural    | about the Thai market and at the  |
| products from fresh to processed  | same time severe competition from |
| food.                             | China, Australia, New Zealand,    |
|                                   | Japan and other neighboring       |
| \- Excellent opportunities exist  | countries impedes the entry of    |
| for U.S. products targeting niche | U.S. products                     |
| markets                           |                                   |
+-----------------------------------+-----------------------------------+
| \- Increase of per capita income  | \- U.S. products are not always   |
| from \$1,831 in 2001 to \$1,992   | price-competitive compared to     |
| in 2002                           | imports from other Asian          |
|                                   | countries due to high tariffs,    |
| \- GDP for 2004 is projected at 8 | shipping costs and time to        |
| percent                           | Thailand                          |
|                                   |                                   |
| \- Increase in Thai consumers'    |                                   |
| preference for higher quality     |                                   |
| products                          |                                   |
+-----------------------------------+-----------------------------------+
|                                   | \- The bilateral free trade       |
|                                   | agreement between Thailand and    |
|                                   | other countries, particularly     |
|                                   | China, Australia, and India,      |
|                                   | induces the import of more        |
|                                   | low-price products from these     |
|                                   | trade partners                    |
+-----------------------------------+-----------------------------------+
| \- Local Thai consumers view      | \- Local manufacturers can        |
| US-origin products as high        | improve or change quality of      |
| quality and safe and are          | products, tastes or packaging     |
| confident in U.S. foods and       | sizes according to changes in     |
| beverages consistency             | consumer behavior and can lower   |
|                                   | production cost                   |
+-----------------------------------+-----------------------------------+
| \- Eating style of Thai people is | \- Lack of continuous promotion   |
| changing to include more imported | of U.S. varieties in Thai market. |
| food items                        | Exporters need to support market  |
|                                   | promotion campaigns to attract    |
|                                   | and build new markets             |
+-----------------------------------+-----------------------------------+
| \- Increase in niche markets with | \- Market penetration for         |
| higher incomes and high premium   | imported products is concentrated |
| product preferences               | in Bangkok and major              |
|                                   | tourist-destination provinces     |
+-----------------------------------+-----------------------------------+
| \- The booming tourism industry   | \- American style mass food       |
| is ratcheting up demand for HRI   | products produced locally cost    |
| products, especially U.S. beef,   | less                              |
| turkey, seafood, wine and         |                                   |
| seasonings which can be used in   |                                   |
| American, French, Japanese and    |                                   |
| other international style         |                                   |
| restaurants                       |                                   |
+-----------------------------------+-----------------------------------+
| \- Reliable supply of U.S.        | \- Thai government's policy and   |
| agricultural products and         | actions try to increase demands   |
| advanced U.S. food processing     | for Thai local products           |
| technology                        |                                   |
|                                   | \- Food Safety concerns           |
+-----------------------------------+-----------------------------------+
| \- A wide range of restaurants    | \- Very high import tariffs on    |
| and menus to meet demands of      | high value consumer food and      |
| tourists requires a wide variety  | beverage products, especially     |
| of products                       | U.S. meat products, wine,         |
|                                   | whiskies, cherries, peaches,      |
|                                   | plums, pears, French fries, etc.  |
+-----------------------------------+-----------------------------------+
| \- Thai importers prefer to deal  | \- Lack of trader and consumer    |
| with reliable U.S. suppliers who  | awareness of U.S. products, while |
| are able to supply products at    | marketing costs to increase       |
| competitive prices                | consumer awareness are high       |
+-----------------------------------+-----------------------------------+
| \- Thailand's beneficial          | -Due to the high import tariffs   |
| geographical location is viewed   | on U.S. products, most Thai       |
| as a gateway to the larger        | importers have shifted to import  |
| Indochina and other Asian markets | less expensive products from      |
|                                   | other Asian countries, especially |
|                                   | Australia, China, Malaysia,       |
|                                   | Singapore, etc.                   |
+-----------------------------------+-----------------------------------+

# SECTION III: ROAD MAP FOR MARKET ENTRY

# 

Direct contact with local food service importers is the best entry
strategy for U.S. exporters. Hotels and resorts do not import food
directly in volumes to be attractive to U.S. exporters. It is easier for
hotels and resorts to order from food service importers because they
specialize in providing high quality U.S. products to the five-star
hotel and restaurant industry. Restaurants such as fast food chains or
family style restaurants also order and purchase imported food from food
service companies or from their affiliate companies who act as their
distributors. Five star hotels and resorts are the heavy users for U.S.
products. International food restaurants located in the prime areas of
Bangkok, Chiang Mai, Samui island, Phuket and Phi Phi island are
secondary recommendations for U.S. exporters. Direct contact with
catering services is highly recommended for first time market contact.

# SECTION IV: BEST MARKET PROSPECTS

Best market prospects for U.S. suppliers include:

-   Fresh and frozen seafood such as fish, crab, shrimp, crawfish (fresh
    and frozen), scallop, lobster, mussel, oyster, etc.

-   U.S. beef, poultry, processed meats

-   American spices, seasonings and sauces, jam and jelly, mayonnaise,
    Salsa sauces, nuts (walnuts, hazel nuts, macadamia nuts), dried
    fruits syrup, tortilla chips, and vinegar

-   Baking products, flour, biscuits, ready-to-mix pancakes, cookies,
    muffins and cakes

-   Breakfast cereals

-   Canned foods (soup, fruit and vegetables)

-   Dairy products (cheese, cheese spread, cream cheese, whipped cream,
    sour cream, cheese dip, ice-cream, dips)

-   Fresh fruit and vegetables (radish, celery, carrots, apples, grapes,
    cherries, kiwi fruit, avocados, blueberries, grapefruit, oranges)

-   Frozen products (cakes, peas, vegetables, fruits)

-   Fruit juice

-   Wine, liquor, whisky and beer

# SECTION V: CONTACT INFORMATION

**Hotels and Resorts**

Bangkok Marriott Resort and Spa Hotel

257 Charoennakorn Road,

Bangkok 10600

Tel: 662-476-0022

Fax: 662-477-0811

www.marriotthotels.com/bkkth

Contact: Jonh Westoby, Director of Operations

Banyan Tree Bangkok

21/100 South Sathorn Road,

Sathorn, Bangkok 10120

Tel: 662-679-1200

Fax: 662-679-1188

www.banyantree.com

Contact: Scott Murray, Director of Food and Beverage

Conrad Hotel

All Seasons Place,

87 Wireless Road,

Bangkok 10330

Tel: 662 690 9999

Fax: 662 690 9000

www.conradhotels.com

Contact: Leon Dolle, Executive Assistant Manager

Dusit Thani Hotel

946 Rama IV Road,

Bangkok 10500

Tel: 662-236-9999

Fax: 662-236-6400

www.dusit.com

Contact: Frank Grassmann, Director of Food and Beverage

Four Seasons Hotel

155 Rajadamri Road,

Bangkok 10330   

Tel: 662-250-1000   

Fax: 662-253-9195

www.fourseasons.com/bangkok

Contact: Robert Logan, Director of Food and Beverage

Grand Hyatt Erawan Bangkok

494 Rajdamri Road,

Bangkok 10330

Tel: 662-254-1234

Fax: 662-254-6286

www.bangkok.hyatt.com

Contact: Chris Conway, Director of Food and Beverage

JW Marriott Hotel

4 Sukhumvit Road, Soi 2,

Bangkok 10110

Tel: 662-656-7707

Fax: 662-656-7711

www.marriott.com

Contact: Mr. Patrick Martinez, Acting F&B Director

Peninsula Hotel

333 Charoennakom Road

Klongsan Bangkok 10600

Tel: 662-861-2888

Fax: 662-861-1112

http://bangkok.peninsula.com

Contact: Eric Faivre, Director of Food and Beverage

Royal Orchid Sheraton Hotel

2 Captain Bush Lane, New Road,

Siphya, Bangkok 10500

Tel: 662-266-0123

Fax: 662-236-8320

Contact: Dario Orsini, Director of Food and Beverage

Shangri-La Hotel

89 Soi Wat Suan Plu,

New Road, Bangrak,

Bangkok 10500

Tel: 662-236-7777

Fax: 662-236-8579

www.shangri-la.com

Contact: Randel Linhart, Director of Food and Beverage

Sheraton Grande Sukhumvit Hotel

250 Sukhumvit Road

Bangkok 10110

Tel: 662-653-0333

Fax 662-653-0400

www.sheratongrandesukhumvit.com

Contact: Dennis J. Thouvard, Director of Food and Beverage

Sofitel Central Plaza Hotel

1695 Phaholyothin Rd,

Chatuchak, Bangkok 10900

Tel: 662-541-1234

Fax: 662-541 1087

www.centralhotelsresorts.com

Contact: Herve Duprat, Director of Food and Beverage

Sukhothai Hotel

13/3 South Sathorn Road,

Bangkok 10120,

Tel: 662-287-0222

Fax: 662-287-4980

www.sukhothai.com

Contact: Anne-Marie Houston, F&B Manager

The Oriental Hotel

The Oriental, Bangkok 48 Oriental Avenue,

Bangkok 10500

Tel: 662-659-9000

Fax: 662-659 0000

www.mandarin-oriental.com/bangkok

Contact: Eric Weber, F&B Manager

**Restaurants**

13 Coins Restaurant

13 Coins Towers Ltd.

525/3 Ratchadapisek Road,

Huaykwang, Bangkok 10310

Tel: 662-274-1219

Fax: 662-274-1218

Contact: Somchai Nitiwanakul, Managing Director

Bourbon St. Bar and Restaurant

Texxan Co., Ltd.

29/4-6 Behind Washington Theatre

Sukhumvit Soi 22,

Bangkok 10110

Tel: 662-259-0328/9

Fax: 662-259-4318

www.bourbonstbkk.com

Contact: Douglas B. Harrison, Managing Director

Hamilton's Steak House

Dusit Thani Hotel

946 Rama IV Road,

Bangkok 10500

Tel: 662-236-9999

Fax: 662-236-6400

Contact: Frank Grassmann, Director of Food and Beverage

Hard Rock Café

424/1, 424/3-6 Siam Square Soi 11

Pathumwan, Bangkok 10330

Tel: 662-251-0792/94

Fax: 662-254-0832

www.hardrockcafe.co.th

Contact: James Choong, General Manager

Outback Steakhouse

OBS Restaurant Thailand Limited.

2^nd^ Floor Siam Discovery Centre

Rama 1 Road, Pathumwan

Bangkok 10330

Tel: 662-658-0202

Fax: 662-658-0204

Contact: Ajay Verma, Proprietor

Neil's Tavern Restaurant

58/4 Soi Ruam Rudee,

Wireless Road, Bangkok 10330

Tel: 662-256-6874-6

Fax: 662-650-9740

Contact: Pipat Pitsanusakorn, Managing Director

New York Steakhouse

2^nd^ Floor, JW Marriott Hotel

4 Sukhumvit Road, Soi 2,

Bangkok 10110

Tel: 662-656-7707

Fax: 662-656-7711

Contact: Mr. Patrick Martinez, Acting F&B Director

Park Avenue Steak House

Panumas Marketing & Distribution Co., Ltd.

G/F, Mercury Tower,

540 Ploenchit Road,

Bangkok 10330

Tel: 662-658-7722/3

Fax: 662-658-7892

Contact: Panumas Pornvarakorn, Proprietor

Roses Are Red (Steak and Seafood Restaurant)

413/5 Sukhumvit Soi 55

(Between Thonglor 23-25) Bangkok

Tel: 662-392-1881-2

Fax: 662-392-4530

Contact: Triphong Kohengkul, Managing Director

S & P Syndicate Public Company Limited

457-457/6 Soi Sukhumvit 55 Vadhana

Bangkok 101110

Tel: 662-381-3412

Fax: 662-381-2790

Seafood Palace International (Seafood Market and Restaurant)

Euro Emporium Co., Ltd.

348 Sukhumvit Road., Asoke Sq.,

Bangkok 10110

Tel: 662-653-1145-8, 653-3900/5

Fax: 662-653-1149

Contact: Nucha Kathapithak, General Manager

Tony Roma's

Mas Millennium (Thailand) Ltd.

87 Sukhumvit Road, Ground Floor,

Nai Lert Building

Klongtoey, Wattana

Bangkok 10110

Tel: 662-254-2912

Fax: 662-254-1326

Contact: Raymond Chow, General Manager

**Institutional/Catering Contacts**

Compass Group Services Co., Ltd.

100/1 Vorasombat Building, 11, Rama 9 Rd.,

Huaykwang, Bangkok 10320

Tel: 662-247-5720-5

Fax: 662-247-5726

Contact: Buranapap Unsaen, Acting Purchasing Manager

Hugues Reveille, Managing Director

Thai Airways International Plc.

Bangkok International Airport,

Donmuang, Bangkok 10210

Tel: 662-697-1128

Fax: 662-504-4057

Contact: Suchada Tiyavanich, Duty Manager Procurement Section

Siam Flight Services Ltd.

Bangkok International Airport

Vipavadee-Rangsit Road,

Donmuang, Bangkok 10210

Tel: 662-996-8881 ext. 150

Fax: 662-996-8889

Contact: Charunan Ratana-arporn, Purchasing Manager

Gate Gourmet (Thailand) Ltd.

71 Chaengwattana Road,

Kwaeng Talad Bangkhen,

Khet Laksi, Bangkok 10210

Tel: 662-521-8200-5

Fax: 662-521-1164

Contact: Supachai Sornthong, Assistant Supply Manager

Impact Arena Exhibition and Convention Center Muang Thong Thani

99 Popular Road, T. Banmai,

A. Pakkred, Nonthaburi 11120

Food and Beverage Department

Tel: 662-504-5050

Fax: 662-504-4444

Contact: Chawanich Sirisinghol, Food and Beverage Director

Bangkok International Trade and Exhibition Centre

8 Bangna-Trad (Km.1),

Bangna, Bangkok 10260

Tel: 662-749-3939

Fax: 662-749-3959

Contact: Dana Caron, Food and Beverage Director

F&B International Co., Ltd.

Queen Sirikit National Convention Center

60 New Rachadapisek Road, Klongtoey,

Bangkok 10110

Tel: 662-229-3213

Fax: 662-229-3174

Contact: Pornchai Hoonsawadi, Acting General Manager

Anake Boontham, Food and Beverage Manager

**Food Service Importers**

Fine Food International Co., Ltd.

524/26 Soi 19 Rama 9 Road,

Huay Kwang, Bangkapi,

Bangkok 10310

Tel. 662‑319‑5274‑5

Fax. 662‑319‑7352

E‑mail: finefood@loxinfo.co.th

Contact: Pairat Rodjanaporn

Intermarco Co., Ltd.

50 Hajana Village

Srisena Rd., Phuket 83000

Tel. 66‑076‑253‑024

Fax. 66‑076‑216‑425

Contact: Ron Brandon, Managing Director

Pan food Co., Ltd.

3388/7 Sirirat Bldg. 2nd Floor,

Rama IV Rd., Klongton, Klong‑Toey

Bangkok 10110

Tel. 662‑671‑5093, 672‑7982

Fax. 662‑671‑8454

E‑mail: panfood@hotmail.com

Contact: Vutikorn Daomanee, Managing Director

Siam Food Services

2439 Old Paknam Railway Rd.

Prakhanong, Klongtoey,

Bangkok 10110

Tel. 662‑240‑4000 ext. 101

Fax. 662‑671‑8591

Contact: Pieter Nuboer, CEO

Superior Quality Food Co., Ltd.

50 Soi Pattanakarn 20,

Suanluang, Suanluang District,

Bangkok 10250

Tel. 662-720-0641-3

Fax. 662-720-0644

E-mail: nittokai@hotmail.com

Contact: Supharat Laopranichon, Managing Director

Tohkaiya Company Limited

33/89‑90 Moo 10, Thepharak Rd.,

K.M. 16, Bangplee,

Samutprakarn 10540

Tel. 662‑312‑1861‑2, 752‑5506‑7

Fax. 662‑750‑7370

Contact: S.S. Loo, Managing Director

# 

# Beverage Importers

Ambrose Wine Limited

3/Flr., Bangkok Business Centre,

29 Sukhumvit 63 Road (Ekamai),

Klongton Nue, Wattana,

Bangkok 10110

Tel. 662-714-2531-40

Fax. 662-714-2545

E-mail: wisanp@ambrosewine.com

Contact: Mr. Wisan Pijibandan, Marketing Director

Bangkok Beer and Beverage Co., Ltd.

193/54 Lake Rajada Office Complex

14^th^ Floor, Rajadapisek Road, Klongtoey,

Bangkok 10110

Tel. 662-661-9446-7

Fax. 662-661-9448

E-mail: pc@bbb.co.th

Contact: Mr. Pongchalerm Chalermsaphayakorn, Executive Director

Bangkok Liquor Co., Ltd.

3/1 Convent Road, Silom,

Bangkok 10500

Tel. 662-674-7901/2

Fax. 662-212-6890

E-mail: kiti@bangkokliquor.com

Contact: Mr. Kitti S.Chaikul

Berli Jucker Public Co., Ltd.

99 Soi Rubia, Sukhumvit 42 Road,

Phrakanong, Klongtoey,

Bangkok 10110

Tel. 662-367-1111

Fax. 662-712-2241

Email: bjcwine@berlijucker.co.th

Contact: Ms. Tassanee Luangpetchngam, Marketing Manager

Cannon Pacific Co., Ltd.

188/3 Soi Sukhumvit 63 (Ekamai),

Klongton Nua,

Bangkok 10110

Tel. 662-391-6318

Fax. 662-391-6320

Contact: Mr. Ekachai Mahaguna, Managing Director

Cititex Enterprises Co., Ltd.

40/29 Moo 5, Karnchanapisek Road,

Bangbon, Bangkok 10150

Tel. 662-895-1761

Fax. 662-895-3958

Contact: Mr. Sithisak Chatamornwong, Managing Director

California Wine Co., Ltd, The

498-504 Sukhumvit 22, Besides Washington Theatre,

Sukhumvit Road, Klongton,

Bangkok 10110

Tel. 662-260-5794-5

Fax. 662-260-5807

Contact: Mr. Sorasit Wongsantivanich, General Manager

Diethelm & Co., Ltd.

2439 Old Paknam Railway Road,

Klongton, Klongtoey,

Bangkok 10110

Tel. 662-672-5535-39 Ext 101

Fax. 662-672-2569

E-mail: kritkasp@spd.diethelm.co.th

Contact: Mr. Kritkasem Panyarachun, Sales & Marketing Manager,
Food/Special Products Div.

Italthai Industrial Co., Ltd.

2 Soi Soonvijai 3, New Petchburi Road,

Bangkapi, Huaykwang,

Bangkok 10320

Tel. 662-318-1617-22

Fax. 662-314-1809

E-mail: erik@italthaicellar.com

Contact: Mr. Erik Cornetet, Deputy Group Manager

Nicolas B.C. Co., Ltd.

36/9-10 Chaengwattana Road,

Thungsonghong, Laksi,

Bangkok 10210

Tel. 662-982-7178

Fax. 662-982-7760

Contact: Mr. Jajarindr Saochin, Managing Director

Splendid Surplus Co., Ltd.

27/17-18 Petchkasem Road,

Nongkhaem, Luksong,

Bangkok 10160

Tel. 662-807-4074

Fax. 662-807-4073

Contact: Mr. Thanis Potchapornkul, Managing Director

Vanichwathana (Bangkok) Co.,Ltd.

41 Anuwong Road,

Bangkok 10100

Tel. 662-222-2450

Fax. 662-224-8042

Mr. Vichai Kanchanasevee, Assistant Managing Director

V&K Inter Group Company

140/1 Soi Sukhumvit 4,

Sukhumvit Road, Klogntoey,

Bangkok 10110

Tel. 662-656-8030/5

Fax. 662-656-8182/3

Contact: Mr. Dominique Forey, Managing Director

Mr. Kittipong Dechaampai, Managing Director

Wine Gallery

9/8 Sukhumvit Soi 44,

Klongton, Klongtoey,

Bangkok 10110

Tel. 662-261-4602

Fax. 662-261-4536

Contact: Ms. Wantana Loakulrak, General Manager

**POST CONTACT AND FURTHER INFORMATION**

The Foreign Agricultural Service in Bangkok maintains up-to-date
information covering food and agricultural import opportunities in
Thailand and would be pleased to assist in facilitating U.S. exports and
entry to the Thai market. Questions or comments regarding this report
should be directed to the Foreign Agricultural Service in Bangkok at the
following local or U.S. mailing address:

+-----------------------------------+-----------------------------------+
| [Local]{.underline}:              | [U.S. Mail]{.underline}:          |
|                                   |                                   |
| Office of Agricultural Affairs    | Office of Agricultural Affairs    |
|                                   |                                   |
| U.S. Embassy                      | U.S. Embassy, Box 41              |
|                                   |                                   |
| 120-122, Wireless Road            | APO AP 96546                      |
|                                   |                                   |
| Bangkok 10330                     |                                   |
|                                   |                                   |
| Tel. +662-205-5106                |                                   |
|                                   |                                   |
| Fax. +662-255-2907                |                                   |
|                                   |                                   |
| Email: Agbangkok@usda.gov         |                                   |
|                                   |                                   |
| Home page:                        |                                   |
| http://www.fas.usda.gov           |                                   |
+-----------------------------------+-----------------------------------+

End of Report.