Businesses remain hamstrung by the pandemic, leading many enterprises to freeze their investment, especially small firms struggling with harsh financial difficulties.
Ms Ariya says the company's strengths are owning its business know-how as well as self-reliance.
Yet some companies are bucking the trend, such as Khao Shong Industry 1979 Co, the producer of Khao Shong coffee products.
Founded in 1959 at the Khao Kra Shong National Park in Trang province in southern Thailand, founder Chira Chiralerspong noticed wild coffee beans were scattered on both sides of the road.
Mr Chira felt there must be a way to use these wasted beans. He gathered them and started roasting them in different ways to create the perfect flavour.
In 1962, Mr Chira produced Khao Shong coffee and introduced it to the market. He established a roastery and ground coffee factory in Bangkok in 1975, then four years later he introduced Khao Shong Instant Coffee, the first instant coffee in Thailand using a Thai brand name.
As business flourished, in 1991 Mr Chira established a new plant in Samut Prakan province. Then in 2012 the company opened a new factory run by another company named Khao Shong Group in Chachoengsao to expand production capacity to serve the global market.
A FAMILY AFFAIR
"Khao Shong is the first Thai instant coffee brand. It originated from my grandfather working like a scientist to invent and experiment with beans. He is always immersed in thought on how to brew coffee at home," said Ariya Chiralertpong, deputy managing director of Khao Shong Industry 1979, the third generation to continue in the coffee business.
According to Ms Ariya, a graduate with a doctorate degree in food science, the second generation, led by her uncle, Chana Chiralerspong who graduated in engineering, should be given the credit for the company's growth. He helped develop and expand the company's business, particularly regarding manufacturing processes and business practices, she said.
"The reason we survived in the domestic instant coffee market for 62 years is we always improve our production efficiency and products to meet consumer demand and changing market trends," Ms Ariya said.
"Our strength is we own our business know-how and rely on ourselves, whether it is a past economic crisis or the ongoing Covid-19 pandemic. We've got a long-term business plan and tried to diversified market channels to export to as many countries as possible."
Khao Shong coffee is exported to several regions including China, the US, Korea, the Middle East and Sri Lanka.
Exports contribute about 10% of sales revenue totalling 2 billion baht last year, with 90% from the domestic market.
CONTINUED OUTLAYS
She said even during the pandemic, the company has not delayed investment. Khao Shong is investing in new machines to become fully automated, helping to control production costs and limit infections from human contact during the outbreak.
"During this economic slowdown, we took the opportunity to upgrade our machinery. Our mission is to adopt modern technology to improve our manufacturing process, reduce production costs and increase productivity," said Ms Ariya.
"Annual investment is for the company's long-term growth, to create better quality products and improved efficiency."
The company did not set a sales target this year as it is evaluating the impact of the government's latest lockdown and curfew measures introduced in July.
Khao Shong wants to focus more on online channels, social media and online platforms to boost its sales this year, in addition to existing retail channels such as modern trade, supermarkets, convenience stores and traditional coffee shops, she said.
The company also plans to launch ready-to-drink canned coffee in the domestic market soon. This product is already available for export.
Ms Ariya said amid lockdown measures worldwide, black coffee is gaining in popularity as consumers globally are more concerned about their health and many cannot venture outside to find fresh coffee shops.
Some consumers also prefer to brew coffee themselves at home, she said.
"We have a plan to beef up ground and roasted coffee sales," said Ms Ariya.
"Next year we plan to engage more in activities that educate Thai consumers on how to brew roasted and ground coffee. Many Thais don't understand what to do with roasted coffee."
According to the Commerce Ministry, coffee is a key cash crop for Thailand, with a market value of more than 33 billion baht.
Over the last five years, Thailand has average annual demand of 88,862 tonnes of coffee beans, but has produced only 24,671 tonnes a year, or 28% of the coffee demand.
