SPC Samlip Expands into Thai Bakery Market by Signing MOU with CP Group Affiliate

SPC Samlip Expands into Thai Bakery Market by Signing MOU with CP Group Affiliate

SPC Samlip announced on March 6, 2023, that it has concluded a business agreement for partnership with Siam Makro, a distributional affiliate of CP Group, the Thailand’s No. 1 business, to facilitate its entry into the Thai bakery market.

SPC Samlip held the event to commemorate the “SPC Samlip-Siam Makro Partnership Business Agreement” for the ‘Joint Business for Thai Bakery’ at the COEX Intercontinental Hotel in Seoul, Korea in last February.

Through this agreement, which marks the first partnership SPC Samlip signs with a local company to advance into overseas markets, the two companies plan to discuss the establishment of a joint venture for the production and distribution of bakery products in Thailand and carry out related businesses.

Siam Makro recorded annual sales of nearly KRW 17.6 trillion as of 2022, and is operating around 150 warehouse-type stores “Makro” and 2,500 large-scale discount stores named “Lotus” throughout Thailand. In addition, it is operating 10 Makro stores in Cambodia, India, China, and Myanmar, and also running distribution and premium food export businesses in Asia.

SPC Samlip aims to operate the local bakery product production and distribution business, starting with the consigned operation of in-store bakeries within the Siam Makro’s distribution channels in Thailand and Southeast Asia and provide bakery business know-hows on product development, operation process, quality control, etc. to Siam Makro.

Furthermore, SPC Samlip will seek to expand its collaboration with CP Group into various fields such as bio and IT industries based on its digital innovations which encompass the R&D and source technology in the field of fermentation-based microorganisms that have been accumulated over 70 years.

An official from SPC Samlip said, “With this agreement, SPC plans to further expand its business to the Southeast Asian market starting with Thailand. Based on our competencies that have led the domestic bakery market, we will demonstrate the excellence of Korean bakery in the Thai market.”

Meanwhile, CP Group is the No. 1 company in the Thai business sector with sales of roughly KRW 87 trillion as of 2021. The group has expanded its business into 21 countries across 8 business groups, including “CP Food” in the food sector, “CP All” in the distribution sector, and “True” in the telecommunications and media sector. CP All is operating about 13,000 7-Eleven stores across Thailand.