SATS’s food solutions venture building arm says it will be embarking on a series of ventures to drive growth in its non-travel food business.
This will be done in partnership with the Singapore Economic Development Board (EDB) and Singaporean food and beverage (F&B) brands to enable greater scale and internationalization.
In a Nov 10 filing on SGX, SATS announced that it has committed over $3 million with support from EDB to create and pivot new business ventures with strong global potential and the ability to scale.
On this, the in-flight caterer has initiated a hybrid kitchen model, which aggregates demand through its integrated supply chain and large-batch production of meal components such as soups and sauces in its central kitchens.
The model enables SATS to curate a wide-ranging menu based on data analytics and consumer preferences derived from online ordering systems. It also allows the company to produce meal components in large volumes off site before dishes are freshly assembled and prepared for diners on site.
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Similarly, small- and medium-sized enterprises (SMEs) and partners who collaborate with SATS will gain scale efficiencies and quicker research and development (R&D) turnaround without having to invest in these capabilities on their own, says SATS.
On the collaboration, Choo Heng Tong, executive vice president at EDB says, “EDB is proud to partner with home-grown companies like SATS in creating new corporate ventures from Singapore. The ability to ideate, prototype, and launch new corporate ventures quickly will enable our companies to remain at the forefront of their respective industries, and give rise to the next generation of companies and brands that Singaporeans can be proud of.”
“This will also help to create exciting new jobs for Singaporeans – entrepreneurs, makers and builders, whose craft can be accelerated by tapping on the expertise and assets of a corporate mothership,” Choo adds.
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“The SATS ventures arm plays a key role in driving business model innovation to spur new synergies through innovation and product development for future foods. Coupled with greater digitalisation, this will expand our food solutions business regionally. We are committed to quality and to staying in step with local F&B brands by creating opportunities for them to grow with us. This will raise Singapore’s status as a food innovation hub and help SATS maintain market leadership,” says Kerry Mok, president and CEO designate at SATS.
As at 2.25pm, shares in SATS are trading 4 cents lower or 0.94% down at $4.21.
Photo: SATS
