Company Highlights
Thai Union Group was originally founded in 1977 under Thai Union Manufacturing Company Limited, as a processor and exporter of canned tuna. Then, in 1988, Thai Union Group (Public) Company Limited, originally known as Thai Union Frozen Products was founded. The business was primarily concerned with frozen seafood production and export, as a private company limited, with an initial registered capital of THB 25 million. In 1992, the company entered into joint venture with Mitsubishi Corporation and Hagoromo Foods Corporation, Japan’s major trade, food production and distribution companies, who were TUF’s customers and distributors in Japan. Both corporations played a significant role in developing company products to meet international standards and become competitive in the world markets. The company went public with a listing in the Stock Exchange of Thailand on 22 November 1994 as Thai Union Frozen Products PCL (TUF).
GLOBAL EXPANSION MILESTONES
- 1997 First overseas investment with the acquisition of Chicken of the Sea, USA’s number three canned tuna brand.
- 2003 Acquired Empress International Ltd., a frozen seafood importer and distributor in the USA.
- 2006 Established Chicken of the Sea Frozen Foods to market frozen seafood in the USA. Chicken of the Sea Frozen Foods later merged with Empress International and was renamed Tri-Union Frozen Products, Inc.
- 2006 Acquired majority stake in PT Jui Fa International Food, a canned tuna producer and exporter based in Indonesia.
- 2008 Acquired majority stake in Yueh Chyang Canned Food, a canned seafood producer and exporter based in Vietnam.
- 2009 Invested in Avanti Feeds Limited, a shrimp feed and frozen shrimp producer based in India.
- 2010 The company expanded into Europe with the acquisition of MW Brands SAS (now Thai Union Europe), producer and distributor of shelf-stable tuna and other seafood with leading European brands such John West, Petit Navire, Parmentier and Mareblu.
- 2010 Founded US Pet Nutrition, LLC to produce and market pet care in the USA.
- 2014 Further expansion into Europe with the acquisition of MerAlliance SAS, Europe’s number four smoked salmon producer and number one in France.
- 2014 Acquired King Oscar AS of Norway, the number one premium shelf-stable sardine brand in Norway, USA and Australia and with over 140 years of heritage.
PROGRESS IN THE LAST YEAR
Thai Union successfully implemented a global corporate rebranding, bringing the entire company under a common vision, mission, core values and brand identity to drive alignment towards a common goal. This was the solution for the company’s continuous growth and expansion worldwide in order to realign different work cultures and drive the company forward.
Apart from the corporate rebranding, company name changes were also implemented:
- Thai Union Frozen PCL (TUF) was changed to Thai Union Group PCL (TU).
- MW Brands SAS was changed to Thai Union Europe.
- Thai Union International, Inc. was changed to Thai Union North America, Inc.
- The company was granted a permission to operate as “Treasury Center” (TC) by the Ministry of Finance on 12 June 2015. This provides more flexibility to the company in cash and financial management, including increasing the company’s capability and efficiency in foreign exchange and financial risk management, funding arrangements and liquidity management for associated affiliates, both domestic and overseas.
- The company was also granted an approval to operate as “International Headquarter” (IHQ) for rendering Managerial, Technical, Supporting Services and Treasury Center by the Revenue Department, Ministry of Finance on 6 August 2015.
IHQ is one of the Royal Thai Government tax incentives to promote Thailand as an investment hub for oversea investment, which shall provide the company with the following benefits:
1. Corporate income tax exemption for income received from foreign affiliates and corporate income tax rate reduction of income received from Thai affiliates for the following:
1.1 Income from Managerial, Technical, Supporting Services and Treasury Center including
interest receivable;
1.2 Royalty; and
1.3 Dividend.
2. Minimize cost of funds by way of interest withholding tax exemption;
3. Attract potentially talented expatriates due to personal income tax rate reduction.
- Completed acquisition of Orion Seafood International, USA-based leading global supplier of lobsters, by Chicken of the Sea Frozen Foods, a Thai Union subsidiary. This M&A makes Chicken of the Sea Frozen Foods a leading player in lobster, bolstering its shrimp and crab businesses.
- The company entered into joint venture with Savola Foods Company, one of the largest consumer goods producers in the Middle East. The joint venture is beneficial to both companies in terms of access to global seafood with the expertise of Thai Union and regional expertise of the Savola Foods. This synergy shall strengthen one another with the Thai Union’s current strength being sourcing, producing and R&D, while Savola Foods has strength in sales, marketing and distribution.
Savola Foods Company is a 100 percent subsidiary of the Savola Group, a large conglomerate publicly listed in the Kingdom of Saudi Arabia. Savola Foods is one of the largest food companies in the Middle East with prominent brands such as Afia, Alarabi Ladan and Yudum.
- Increased investment in Thai Union Manufacturing (TUM) from 90.80 to 99.66 percent of the THB 300 million registered capital.
- Increased investment in Songkla Canning PCL (SC) from 90.44 to 99.55 percent of the THB 360 million registered capital.
- The company terminated the acquisition, of Bumble Bee Seafoods a leading seafood company in North America, on December 4, 2015.
Previously, Thai Union announced that it had agreed to acquire Bumble Bee Seafoods on December 19, 2014. Over the course of twelve months, both Thai Union and Lion Capital, the owner of Bumble Bee Seafoods, vigorously advocated the merits of the deal to the U.S. Department of Justice. However, both parties concluded that the clearance would be unlikely under the time stipulated in the Share Purchase Agreement and mutually terminated the acquisition.
- The company has acquired a majority stake in Rügen Fisch, Germany’s leading shelf-stable and chilled seafood company. This synergy will help Thai Union enter the German market which is one of Europe’s largest market and contribute to company sustainable growth in Europe.