RS Group is allocating 1.4 billion baht to strengthen its revenue this year via a two-pronged approach with a focus on cannabis and hemp-based products.
Surachai Chetchotisak, the chief executive of RS, said 1 billion baht has been reserved for two new mergers and acquisitions (M&As), although he was not able to disclose details regarding the deals.
Another 400 million baht has been set aside for two new brands, “well u collagen” and “CAMU C” juice beverage, which will be launched in August and September, respectively.
These brands will target younger consumers up to the age of 35 given an increase in interest regarding healthy lifestyles.
“We are stepping into very challenging product categories which have huge market potential,” said Mr Surachai.
In 2020, the market value for juices and vitamin C drinks stood at around 10 billion baht, which represented an average growth of 10% per year.
With this rising trend and the unlocking of cannabis and hemp as ingredients in Thailand, the company also plans to launch cannabis and hemp-based supplement and beverages in the second half of this year.
Pornpan Techarungchaikul, the chief commercial officer of RS, said the firm has worked closely with leading laboratories in researching and devising a formula for hemp-based products. It has also held talks with partners such as farmers, hemp and CBD oil extraction labs and manufacturers with a view to them being prepared for product launches.
“Once we get permission from Food and Drug Administration, we expect to market these products under the S.O.M. brand first by the middle of this year,” she said.
RS will later introduce the two new brands of cannabis and hemp-based products with at least eight items being launched throughout the year.
Moreover, four new food supplement and beverage products under the S.O.M. brand will be introduced via RS Mall, as well as two new food supplements and beverages under the “well u” brand, which would be sold via an exclusive distribution network in convenience stores, modern trade, retail stores, drugstores and RS Mall.
Mr Surachai expects sales of the new brands and products to hit 2 billion baht per year, starting with 600-700 million from the second half of 2021. RS sales are projected at 5.7 billion baht this year, excluding 600-700 million from the new products.