Sappe Acquires Stake In All Coco, Plans To Expand Globally

Tuesday, August 30th, 2016 | 692 Views

Thai drink manufacturer and distributor Sappe has secured a 40 percent stake in All Coco, producer of ‘Nam Hom’ coconut water and desserts prepared from the juice.

The stake will be increased to 51 percent in 2018, and to 60 percent by 2020, and will include control of the production process (i.e. from raw materials sourcing to final production).

All Coco also supplies coconuts as materials to other coconut water brands.

“Sappe’s expertise in international branding and marketing through strong distribution networks, when combined with All Coco’s strength in product quality, will enable us to market Thailand’s coconut juice under Thai brands in the international markets successfully,” said Piyajit Ruckariyapong, chief executive, Sappe.

Strong international consumer demand for the product saw net profit rise to THB 151 million (US$4.35 million), a 144 percent increase from last year.

Packaged coconut water is prepared by extracting liquid from selected fresh coconuts then packaged in food grade cans, PET bottles, and cartons. Depending on brand and packaging, it will usually have a shelf life of nine to 18 months.

According to Technavio analysts, global market for coconut water is forecasted to grow at a CAGR of 25.2 percent in terms of revenue over the period of 2014-2019.