Ginger is helping New Concept Product (NCP) heat up its business with a new cool juice format, as more people in its native Thailand turn to herbal solutions to beat the pan demic blues. The health-herbal company is also poised to ramp up e-commerce solutions with ambitions to make it big in America and China. Deputy Managing Director Vekit Bamrungkit spoke to Andy Probert on the company’s global aspirations.
NEW CONCEPT PRODUCT PROFILE
Deputy Managing Director Vekit Bamrungkit
Herbal solutions and e-commerce, two disparate points of a business compass, have seen the most advances in the years since the pandemic gripped everyday life.
As countries emerge from global lock downs and restrictions, global consumers’ desire for more herbal options and demand for border-less shopping has continued to thrive. For Thailand’s New Concept Product (NCP), the evolution of both is not only wel come, but forming the springboard for inno vation to deep dive into new markets.
“We would never suggest the pandemic has been good for business, far from it, but as side-effects of Covid-19, we have
seen the consumer generally reach out for more herbal-health options and utilise more digital solutions,” attested Deputy Managing Director Vekit Bamrungkit.
Having been in the ginger tea market with its HOTTA brand for three decades, number one in Thailand, and a strong performer in Asia, NCP has moved with emerging trends, by introducing a range of ginger-honey and ginger-lemon juice varieties.
Mr Bamrungkit explained: “Because of HOTTA’s growth in powder form in instant tea and the increase in ginger tea drinkers worldwide, we decided to look at integrating ginger further into the consumer’s daily lifestyle.
“So we launched our new ready-to-drink ginger juices in bottles. These can be refrig erated and can be drunk cold, anytime, any where. We are targeting different markets, but expanding ginger into the life of new ginger drinkers and others not comfortable drinking hot tea.”
He said the feedback locally in Thailand and targeted Asian countries has been “great”. “Having ginger in this form, we will have to do a lot of education so consumers realise they can drink it in a different way. We are actively changing mindsets and have been successful so far.
“It will also capture the opportunity the pandemic has presented, in that people want
more herbal options: they want to achieve health immunity easier, and ginger offers that in an organic, natural way.”
This strategic shift has necessitated that NCP invests heavily in a new industrial facility in Chonburi province, an hour from Bangkok, to produce these ginger juices. Opened in December 2021, the plant has been fully automated with the latest machinery and offers significant opportunities to upscale production of the HOTTA range.
He said: “We take consumer health seriously. Therefore food safety and quality are paramount to our long-term business success, and we continuously seek to improve further.”
More health-conscious
Reflecting on NCP’s performance over the pandemic, Mr Bamrungkit said: “We have a range of brands, and several have per formed better than others, but overall, we believe we are right on track.
“Luckily, our herbal health drink HOTTA has performed very well. There is a belief in Asia, (and it is scientifically proven), that ginger can improve the body’s immunity. People have bought into
the fundamentals of HOTTA, and it is contin uing to grow because they are seeking more health-derived options. This has also been replicated globally in the herbal health-led markets.”
HOTTA and FITNE have been the core of NCP’s success since the latter was launched 35 years ago by current President and pharmacist Visit Bamrungkit. He formu lated FITNE Herbal Infusion Tea to improve health and reduce obesity among local Thai women. In 1990, HOTTA Instant Ginger Tea wasBylaunched. 2009,Bangkok-headquartered NCP
had established a new world-class (and Thailand’s biggest and highest capacity herbal manufacturing) plant in Chonburi. It is equipped with modern production tech nology, automated machinery and an inter national standard laboratory with a qualified team of herbalists and R&D experts.
The FITNE brand accounts for about 40% of sales, closely followed by HOTTA, with both exported internationally. The rest of the company’s portfolio comprises three dedicated Thai brands: LADINA, herbal extracts for women’s health; TUMTHIP, an instant bael fruit drink; and MZEL Coffee,
an instant coffee mix with black ginger extract designed for men’s health.
As Thailand’s most recognised brand for weight-control and slimming solutions and the most popular tea of its kind in the local market, FITNE herbal tea contains widely used medicinal plants for detoxifi cation with all ingredients grown and processed naturally.
HOTTA is the only brand of ginger drink inspired by the unique and genuine ginger characteristic from a special selection of natural-fresh Thai-based ginger, aged 11 to 12 months old. At this age, gingers contain the maximum level of gingerol and zingerol, two essential sources of ginger for aromatic taste and natural benefit. HOTTA contains no sugar, no preservatives, no artificial colourings and no added flavours.
HOTTA Instant Ginger Tea variants were certified ‘Thailand’s Healthier Choice’ in 2016 for daily consumption by the Thai FDA because of their healthy ingredients. The brand has also reaped many national and international consumer awards.
NCP, now employing 450 people, is also Thailand’s first herbal manufacturer with international quality standards in every oper ation process, including after-sales, customer service and traceability. It holds ISO 9001, GMP, HACCP, HALAL and BRC certifications.
Thriving on innovation
“Quality, from sourcing to distribution, has been ingrained in the company’s DNA since inception,” affirmed Mr Bamrungkit. “Quality is a key element when selecting our partners, both local and international Quality, together with innovation, has made us a market leader in Thailand and boosted sales in other countries.”
The company intensified its export efforts five years ago, and now, through its interna tional partners, the FITNE and HOTTA brands have expanded globally on many fronts.
With e-commerce continuing to soar and driving trends, enabling markets to be within easier reach with access to good quality products, NCP has been transforming its digital presence.
“We are actively developing more ecommerce channels. We have launched our flagship brands via Amazon in the USA. That was a huge step for us as a Thai herbal and health products manu facturer,” stated Mr Bamrungkit.
“Within a year, it has massively suc ceeded, as we have already reaped Amazon awards as a high performing brand. E-com merce has been a game-changer for NCP and how con sumers access our products.
“Having set foot in the US, we already export to many continents, and continue to see strong performance in Europe. We are looking at opportunities in China through the Alibaba e-commerce site and want to further evolve our digital footprint into consumers’ lives.”
He said: “The world is more dynamic and moving rapidly at pace as health and herbal products are more accepted now than they were 30 years ago. It has opened new opportunities for NCP, and the plan is firmly focused on expansion, new products and to become a recognised worldwide supplier of healthy herbal drinks, such as HOTTA.
Mr Bamrungkit concluded: “Our challenge is to remain at the forefront of those quickly changing trends and continue to differentiate ourselves from the many producers in the market by offering the highest quality, most effective products on the market today.” n
