American ice cream is coming to the rescue of a coal trader in Thailand, as the company diversifies in the face of volatility in its segment.
Thai Capital Corporation (TCC) has diversified into F&B retail after totally acquiring NYC-Thai BD from its shareholders for 33.82 million baht (about US$950,000).
It is TCC’s first foray into the F&B sector, while NYC has retail outlets specialising in frozen desserts, smoothies and ice creams under the Emack & Bolio’s trademark. This is an American brand founded in 1975 and brought to Thailand in 2012. It has six stores in Bangkok.
TCC CFO Kamphol Patana-anukul says the company bought 400,000 shares of NYC with a par value of 10 baht each. After the transaction is complete, it will increase NYC’s registered capital from 4 million to 20 million baht, which will be used as working capital and for expansion.
TCC had 203.7 million baht in sales revenue for the first quarter, down 27.4 per cent from the same period last year, hit by fierce competition in the coal business and a drop in global coal prices.
Several other Thai companies have also diversified into F&B, including Impact Exhibition Management, which has expanded into the frozen bakery business.
