ThaiBev buys up KFC in Thailand
Thailand’s drinks giant, ThaiBev, producer of the country’s popular Chang Beer, has agreed to purchase more than 240 existing KFC restaurants across the country for 11.3 billion baht (US$340 million), marking its foray into the fast food industry.
The deal, as reported by Bangkok Post, is expected to give ThaiBev ownership of other KFC restaurants that are currently being developed as well as access to KFC’s network across the country.
The acquisition was made through ThaiBev’s subsidiary QSA, and the deal is expected to be completed by the end of the year.
Nongnuch Buranasetkul, senior vice president of ThaiBev’s Food Business (Thailand), said in a statement: “The acquisition of the KFC stores represents more than just an opportunity to enlarge ThaiBev’s food business. KFC’s extensive network in Thailand will give the group direct access to multiple customer touch points across the country, enabling us to understand trends and stay at the forefront of the industry.
“This is essential for sustainable growth over the long term. With QSA’s restaurant management expertise, we are well positioned to accelerate KFC’s further expansion in Thailand.”
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Charoen Sirivadhanabhakdi, chairman of ThaiBev, previously revealed that the company is looking to diversify its operations, with a goal of generating more revenue from non-alcoholic beverages by 2020.
KFC, operated by American company Yum! Brands, has been in Thailand for more than 30 years. But Thailand only accounted for 2% of KFC’s sales in emerging markets last quarter, wrote Bangkok Post. It was the only region in that division that saw sales drop year-over-year, posting a 2% decline, it added.
