Maruzen Foods (Thailand), a joint venture between Boonrawd Brewery and Japan's Maruzen Tea, will spend 450 million baht to expand its green tea production capacity in Chiang Rai over the next three years to serve export markets.
A second green tea production plant will be built on a 10-rai plot at Singha Park in Chiang Rai owned by Boonrawd Brewery subsidiary Boon Rawd Farm Co.
The second plant will have annual production capacity of 300 tonnes, bringing the total to 500 tonnes, Maruzen Foods managing director Pongrat Luangthamrongcharoen said.
The move will enable the company to export Maruzen green tea, while Maruzen Tea of Japan will shift its focus to producing and marketing premium green tea.
Maruzen Tea owns 49% of Maruzen Foods (Thailand) and Boon Rawd Farm 51%. The joint venture will launch its Maruzen matcha green tea drink in Thai modern trade channels this week.
It expects 150 million baht in sales in the first year of operation. The first plant with annual capacity of 200 tonnes is also in Singha Park, where there is a green tea plantation.
Green tea leaves in Thailand are used to produce green tea drinks for the local market at the 140-million-baht plant. Some 80% of the first plant's production capacity is being used.
"This is the first time Maruzen Tea has transferred its green tea processing know-how for matcha outside of Japan," Mr Pongrat said.
Maruzen is based in Shizuoka prefecture, with more than 60 years' experience producing and selling tea in Japan.
Some 70% of Maruzen matcha green tea drinks and other products will be sold in retail shops and modern trade stores nationwide, with 30% serving industrial uses as green tea demand from beverage and bakery producers continues to grow.
The company will market its products abroad via the network of Boon Rawd Trading's international business unit and Singha beer agents who have networks in overseas markets.
Maruzen has been contacted by US, British and Australian companies about distributing its green tea in both teabag and powdered forms.
It will spend 15 million baht to promote matcha domestically next year.