SAPPE signs MoU with GUNKUL for transaction in cannabis & hemp products and to develop expertise and expand into new businesses

SAPPE signs MoU with GUNKUL for transaction in cannabis & hemp products and to develop expertise and expand into new businesses

SAPPE signs MoU with GUNKUL for transaction in cannabis & hemp products and to develop expertise and expand into new businesses

Sappe Public Company Limited (SAPPE) signed a cooperation MoU with GUNKUL to further develop business expertise in the transaction of products involving cannabis and hemp while moving ahead to study the market and to prepare to export raw materials and the extracts from cannabis and hemp that are being cultivated with the latest high technology by GUNKUL to combine with SAPPE’s strength in marketing and sales, while also preparing studies in order to expand into new businesses, beginning with domestic sales and soon expanding into foreign markets.  

Ms Piyajit Ruckariyapong, Chief Executive Officer of Sappe Public Company Limited (SAPPE), revealed that the Company has signed a memorandum of understanding (MoU) with G.K. Hemp Group Company Limited, which is a subsidiary of Gunkul Engineering Public Company Limited, for the transactions of products involving cannabis and hemp to expand Thailand’s cannabis and hemp market, with the marketing effort to start domestically then expanding into foreign markets. This is considered to be the start of a major undertaking by both companies in the cooperation that will lead to the strengthening of both companies’ businesses while also following the policy of the government and the Ministry of Health that advocate the push to make cannabis and hemp into Thailand’s new economic crops and to apply cannabis and hemp to commercial and manufacturing endeavors for the benefit of the country’s overall economy.

With SAPPE’s strength as the owner of several innovative beverage brands in Thailand with the innate expertise in marketing and sales and possessing strong partnerships and network, the Company expects to be able to utilize raw materials and extracts from cannabis and hemp cultivated with high technology by GUNKUL to sell to a wider clientele base. Currently, market evaluation is being undertaken while initially the process has started in applying the raw materials in the production of various consumer and food products with the aim to introduce alternatives to add value that has benefited from the application of cannabis and hemp extracts. This is to fulfill the demand of the customers under the quality and other standards that exist in Thailand and in each of the countries destined to become future export markets.

The Company recognizes the growth potential in the future following the government sector’s policy to promote cannabis and hemp as economic crops. This is considered to be a new business opportunity and has thus embarked on the feasibility studies to build on the existing expertise and to start the cooperation with GUNKUL in those processes.

“This cooperation between SAPPE and GUNKUL will strengthen and enhance the business potential. Our strength lies in marketing and sales and the partnership/customer network that covers many countries. This has brought to SAPPE the potential and opportunities with the marketing to start domestically first before expanding into foreign markets. We will support in seeking customers for the distribution of raw materials and extracts of high quality cannabis and hemp cultivated through the application of high technology in order to create opportunity and a good standard in the cannabis and hemp industry,” Ms Piyajit said.

Meanwhile, Miss Sopacha Dhumrongpiyawut, Chairman of the Executive Committee of Gunkul Engineering Public Company Limited, said that Thailand is considered to be the first country in the ASEAN region that managed to successfully legalize cannabis and hemp and to leverage the plants to become high-value economic crops. This has enabled large and small businesses to develop products that will fulfill the demand of the consumers. The Company is confident that its cultivation process utilizing standard greenhouses constructed on the Company’s own land and the plants are grown hydroponically using reversed-osmosis (RO) water in clay pots. The semi-closed greenhouses ensure that cannabis and hemp cultivated by GUNKUL is of good quality and standard high enough to produce extracts that is also applicable for medical uses. Therefore, we have gained good customer trust in the process.

“This collaboration between SAPPE and GUNKUL is an important step in creating business opportunities together, to help meet new consumer demands, especially in healthcare through the innovation and development of new products that bring the benefits of cannabis and hemp to full use. The partnership will help expand the business into the markets with potential for future growth and to meet the needs of health food and beverages, with the cannabis and hemp extracts used as raw materials and precursors applied as ingredients in the products. This is an opportunity for entrepreneurs in the production chain to enhance their competitiveness in the Thai food industry on the world stage. We also consider this to be an opportunity for GUNKUL to add more channels to expand our businesses and create additional revenue streams in tandem with the partners who have joined together in expanding the cannabis and hemp businesses.

“At present, the Company has one CBD extraction plant located at Khlong 11, Pathum Thani Province, manufacturing products in the category of cosmetics, beverages and herbal medicines. The production capacity is 200 kilograms per day (dry flowers). The hemp cultivation area is 15 rai on land area of approximately 50 rai consisting of 13 greenhouses. The plan is to expand the cultivation to 35 greenhouses on an area of 60 rai by the end of 2022,” Miss Sopacha added.