Sappe (MV $227M): Thailand’s #1 Functional Beverage Company With >60% of Sales from Global Exports
Sappe (SET: Sappe) is Thailand’s #1 functional beverage drinks company with around 40% market share by value (for sizes larger than 250ml) and #1 in functional coffee powder brand under the Preaw brand in terms of volume (#2 by value). Sappe is the pioneering innovator with the concept of “Beauty you can drink” and also the first company to manufacture and sell juice drinks with coconut jelly, or nata de coco, through its best-selling Mogu Mogu as well as juice drinks with aloe vera. Importantly, Sappe is also one of the few Thai or Southeast Asian consumer firms who enjoyed success outside of its domestic market, with overseas exports to over 60 countries contributing over 60% of total sales. Established by the Ruckariyapong family as a traditional desert and cookie company in 1988, Sappe transformed into an innovative functional and healthy beverage company under the leadership of the second-generation leaders Adisak since 2001 and joined later by his sister Piyajit.
1) What Makes It a Wide-Moat Business?
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About The Author: Koon Boon Kee
Koon Boon is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets.
Starting his career at a boutique hedge fund in Singapore and later, at Korea’s largest mutual fund company, Koon Boon started to make headway into the investment arena. In his early successes, Koon Boon was part of the core investment decision committee which achieved 700% in returns (net of fees), in its flagship Asian fund.
A prolific writer and thought leader, Koon Boon has contributed hundreds of articles to Bamboo Innovator and BeyondProxy, an acclaimed series of subscription-based, research-intensive publications for serious investors; and is Managing Editor of the Moat Report Asia, a research service focused exclusively on highlighting undervalued wide-moat businesses in Asia. He had also presented in top banking and finance conferences in Sydney, Cape Town, HK and Beijing, as well as in the Emerging Value Summit and Wide Moat Investing Summit. His work has been featured in local and international media such as, TEDxWallStreet, Investopia, BeyondProxy, Greatinvestors.tv, Jakarta Post, Straits Times Singapore, TODAY Singapore, Business Times Singapore, as well as a publication in the BoğaziçiJournal.
With the wide occurrences of financial fraud committed by listed firms in China during 2015, Koon Boon went to further his studies, from which he saw a gap in the curriculum for accounting fraud. He went on to pioneer the first-of-its-kind course on Accounting Fraud in Asia, which is now an official course in the SMU curriculum.
Today Koon Boon is the Chief Investment Officer at 8I Holdings Limited, where he is responsible for the sustainable growth and outperformance of listed Asian equities investments in the Hidden Champions Fund.
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