PTG eyes coffee expansion

SET-listed PTG Energy, a local oil retailer, plans to spend 6-7 billion baht next year on expanding and upgrading its petrol stations, while growing its Punthai Coffee brand.
Punthai Coffee is one of PTG’s non-oil businesses, along with clean energy and Subway sandwich shops, which the company has operated under a master franchise deal since April this year.
Part of the budget was allocated for the development of petrol stations, with a plan to add 60 new stations and renovate 100 stations next year, said Rangsan Puangprang, chief finance and sustainability officer.
The company operates 2,250 PT petrol stations nationwide.
PTG expects the new investment to drive revenue growth by double digits in 2025, said Mr Rangsan.
The growth estimate is also attributed to 23 million holders of the PT Max Card, which is a membership programme operated by the company.
In terms of the coffee business, PTG aims to increase the number of Punthai coffee shops to 1,300 by the end of this year, up from 1,020 at present.
The company wants to add 1,000 coffee shops next year, he said.
To strengthen its position in the coffee business, PTG signed a memorandum of understanding yesterday with the Royal Forest Department, Mae Fah Luang Foundation and the state-run Bank for Agriculture and Agricultural Cooperatives (BAAC).
The cooperation is meant to ensure PTG has a sufficient supply of coffee beans, supporting farmers from hilltribe ethnic groups in northern Thailand.
The farmers are encouraged to conserve trees, as their shade is required to protect coffee plants against strong sunlight, said Mr Rangsan.
He said promoting coffee plantations helps discourage hilltribe people from clearing portions of the forest for monoculture crops such as corn and cabbage.
Under the joint project, forestry officials will identify some forested areas for the coffee farmers, who can seek loans from the BAAC. The Mae Fah Luang Foundation will educate the farmers on the varieties of coffee beans and processing methods.
For the first three years, farmers are expected to grow Arabica beans on 30,000 rai of land, said Pitak Ratchakitprakarn, chief executive of PTG.
The company wants coffee beans from more diverse areas as sales at its Punthai coffee outlets are growing. Sales are projected to increase by 30% to 120 cups a day per branch this year, up from 90 cups per branch last year.
Domestic demand for coffee beans is 90,000-100,000 tonnes per year, but only 10,000 tonnes are supplied from local plantations, with the remainder imported, mainly from Laos and Vietnam, said Mr Pitak.