Crafting XO sauce with technology and data, elevating Thai sauce to global kitchens.

"Regarding sustainability, we want people to look at it from the perspective of integrating it into their lives." "A company's competitive advantage goes beyond simply viewing things as a cost. Starting early and doing more will make us the first choice for customers in the global market."

Amidst significant global economic volatility and signs of slowing demand in key markets such as Europe and the United States, the latest operating results of Exotic Food Public Company Limited (XO) reflect pressure from weakening purchasing power abroad, along with negative factors such as a strengthening Thai baht and rising production costs. As a result, sales and net profit have declined compared to the previous year.

However, the report filed with the Stock Exchange of Thailand reveals an interesting expansion plan, including an investment budget of over 1.3 billion baht to build a third factory at the Rojana Industrial Park. Construction is expected to be completed in the second quarter of 2027, with operations commencing and revenue recognition starting in 2028. This plan will significantly increase the company's production capacity from 34,572 tons to 43,905 tons per year, to meet the long-term growth potential of Global Thai Food demand, particularly in new markets in China, Eastern Europe, and the Middle East. The company also aims to maintain a gross profit margin above 40%.

One of the key aspects behind maintaining portfolio stability and strategizing to weather this storm is... Vasana Jantarach, Managing Director, Exotic Food Public Company Limited. A leader who believes that the strongest foundation in times of crisis is having a precise management system and developing people to be ready to cope with change.

Vasana gave an interview. bank finance At the heart of data-driven management is that, "Without real-time and reliable data, leaders or CEOs must rely primarily on experience and intuition for decision-making. However, having an accurate back-end system or ERP system with a comprehensive database that connects all departments within the company and provides consistent data is like having an assistant that provides a clear picture."

""ERP as a Heart" Empowering Leaders
With the accuracy of Date

The company chose world-class technology like SAP S/4HANA as the "heart" of its operations to fully transform the organization into a digital one. It emphasized that data is not meant to diminish the role or vision of leaders, but rather as a tool to help close the gaps in uncertainty.

"Instead of completely abandoning experience or intuition in decision-making, we still utilize them, but with supporting sources. This information is like arming leaders to make better decisions."

Vasana further explained the importance of data, stating, "Having more real-time data and information helps leaders make better decisions." This is a crucial safeguard that enables the company to effectively analyze raw material costs and adjust sales plans to align with global market conditions.

Agile Decision Making
Sensitivity in a borderless world.

For XO, the term "Agile" isn't limited to just fast work processes, but refers to adapting to the stringent and diverse standards of each region around the world—a major challenge for the food export business today.

"In the food business, the focus may not only be on quickly approving new products, but also on adapting to ever-changing customer demands and evolving regulations in each country, especially when exporting to 80 countries worldwide, where new things are constantly emerging."

Vasana's agile strategy focuses on flexibility and speed in bringing products to market (time-to-market), without being tied to lengthy processes. "We can launch products immediately. If the response is good, we continue; if it's not successful, we stop and learn."

This vision is reflected in the adaptation of product formulas based on requests from international partners, such as the development of Clean Label products or specialized packaging, which helps XO maintain strong relationships with partners worldwide.

Transforming the “cost of sustainability”.
To turn it into a business "competitive advantage."

Amidst the global trend of ESG regulations, Vasana chooses to view "sustainability" as an opportunity rather than a burden, especially in creating a competitive advantage in the premium market.

"Regarding sustainability, we want people to view it as a competitive advantage for the company, rather than as a cost."

Along with a proven example, the use of electric trucks (EV Trucks), which XO has been using for the past two years, they stated, "We aim to use 100% electric trucks. Therefore, in the current situation, we are not affected by the increase in fuel prices and have lower transportation costs than our competitors."

Beyond monetary profit, sustainability is a key factor in trade negotiations. "Our main customers in Europe place great importance on sustainability. Therefore, starting or doing more extensively in sustainability initiatives will make us the first choice when customers look for manufacturers of Thai food or Thai sauces."

DNA of the new wave of people.
And a leap of power. AI

Behind Vasana's seamless management is "people," emphasizing the creation of a strong organizational DNA under the focus of "Work Smart, Have Fun, No Drama," and arming the organization with intellectual tools using AI technology.

It starts with job interviews that aim to select individuals who match the organization's value proposition from the outset, ensuring they understand the bigger picture of the organization's goals clearly and how their responsibilities contribute to achieving those goals. As a new generation leader, Vasana prioritizes maintaining the organization's existing strengths while adapting to the future, particularly by integrating AI into the work process. She hires experts to provide intensive AI training to all departments for six days a month, enabling employees to create measurable projects, such as building chatbots to answer internal departmental questions.

Meanwhile, XO continuously hires experts to provide AI training to all departments. "There is constant updating of information, and we are working on projects where every department must implement AI and measure its results. We want employees to feel that AI is not replacing human work, but that those who can use AI skillfully are the ones who will stand out from others. Leaders are not controllers, but rather creators of synergy and developers who enhance the capabilities of people throughout the organization."

Not just a sauce, but a story.
Transforming into a "storyteller" of Thai sauces.

Vasana believes that to get Thai sauce brands into the kitchens of people of all nationalities, not just Thai restaurants, leaders must play the role of a "storyteller," focusing on communicating with local consumers through cultural narratives and the real lives of the farmers who source the ingredients. "What foreigners want to see is who grows the chilies for that bottle of sauce, what their lives are like, and how buying this sauce improves their lives," she says. This is the heart of storytelling that connects Thai farmers to kitchens around the world, creating added value as a product made in Thailand using authentic ingredients, coupled with a traceability system that builds confidence for supermarket chains and importers worldwide.

Innovation""Global Thai Food"
It's more than just taste, it's a "lifestyle".

To create a new phenomenon similar to Sriracha XO chili sauce, the company plans to launch products that focus on creativity and marketing gimmicks. This includes developing blind box packaging, such as "12 Months, 12 Sauces," or collaborating with lifestyle brands like clothing and ice cream brands to increase brand visibility. "Unique ideas keep coming in from buyer demands, such as Sriracha Coconut or letting customers vote for their preferred flavors on social media. Therefore, the possibilities for new products in the future are endless, as long as consumer demand continues to change."

Maintain strongholds and expand the empire outside of Europe.

Although its core market is Europe, XO plans to continuously expand beyond Europe in 2569. This will be achieved through upselling strategies targeting high-potential customers, increasing SKU diversity, and penetrating new distribution channels (distribution outlets). Regarding risk management from war and international logistics costs, the company continues to utilize its “War Room” system to closely monitor the situation.

 Alternative sources are the lifeline in supply chain crises.

The key to maintaining high profit margins amidst rising raw material costs is seamless supply chain management. XO focuses on securing backup raw material sources to prevent shortages.

“The key success factor lies in ensuring a continuous supply of goods. If suppliers can source raw materials from other sources with lower costs or greater stability, such as plastic pellets from China, which has its own energy resources, we will have an opportunity while other brands cannot produce them. Managing safety stock and forecasting raw material prices 1-2 months in advance are therefore crucial mechanisms that allow XO to maintain its profitability.”

"Without real-time and reliable data, leaders would have to rely primarily on experience and intuition to make decisions. But having a system..." "An accurate ERP system is like having an assistant that gives you a clear picture and enables you to make better decisions."

Lessons in Family Business Management
The power of respect and clear spatial boundaries.

A key aspect and foundation of the XO empire's success is its approach to managing a "family business" that transcends traditional limitations and achieves international professionalism. As a young executive, Vasana works alongside her brother... Jittiporn Jantarach Another managing director at XO fits the bill perfectly. Vasana believes the key isn't agreeing on everything, but rather respecting differing areas of expertise.

In XO's organizational structure, Jittiporn is responsible for marketing and sales (front-end), while Vasana oversees production, internal management, and all back-end systems. This clear division of roles and responsibilities allows the organization to move forward quickly without duplication of power or conflicts in decision-making.

Vasana revealed her principles for working with her brother, stating, "The key principle is that we must respect each other's decisions. We won't interfere with each other's duties, which is the same principle we apply to all employees."

This concept reflects a leadership maturity that transcends fraternalism to focus on business partnerships with shared goals. Vasana emphasizes that trust must be built through actions and taking full responsibility within one's own scope of work.

"We must accept the specialized expertise of each individual and give them the opportunity to perform their duties fully. If mistakes occur, the individual must take responsibility and correct them themselves. Interference in work will inevitably lead to problems."

The convergence of two individuals with the same DNA but different skills creates a balance between "creativity" from the marketing side and "systematic precision" from the internal management side. This has become the first line of defense that has enabled this family business to grow steadily and become a publicly listed company with high corporate governance.

The next step for XO, under the leadership of the Chantrach siblings, proves that Thai brands can grow gracefully on the global stage if they possess sharp vision and keep pace with technological advancements. The new factory, scheduled for completion in 2570, is a key milestone in their leap towards sustainable future success.

Follow and read other columns in the Bank Finance Journal, April 2569, Issue 528 in digital format: https://goo.gl/U6OnIi

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