S&B Foods is constructing its first overseas factory in Thailand. The aim is to secure an export base serving all 10 ASEAN countries plus Oceania. But the real challenge lies beyond the factory itself.
“We’re considering ASEAN expansion, but we don’t understand how local distribution works.” “We can probably build a factory, but we can’t see the sales channels beyond that.”
These are concerns I frequently hear from overseas business managers at Japanese food manufacturers.
Why now? Why Thailand? What are the real challenges after the factory is built? Here are some observations based on my day-to-day work researching and listing overseas companies.
S&B Foods Aims to Grow Overseas Revenue from 10% to 40%
S&B Foods has set a long-term goal of increasing its overseas revenue ratio to 40% by 2043 — a fourfold increase from the current 10%.
For the fiscal year ending March 2025, S&B’s consolidated revenue is approximately JPY 123.5 billion, with overseas sales accounting for roughly 10%.
In its mid-term management plan announced in 2023, S&B set this target:
Over 40% overseas revenue ratio by 2043
This means quadrupling overseas sales. The new Thailand factory is the first step toward that goal.
Rival House Foods Is Already Active in ASEAN
House Foods Group already operates curry roux factories in ASEAN and has achieved a 25% overseas revenue ratio — 2.5 times that of S&B Foods.
House Foods Group runs overseas factories at three locations in China and one in Vietnam. Its overseas revenue ratio stands at approximately 25% (fiscal year ending March 2025).
In November 2022, House Foods established a joint venture with PT Sasa Inti, a major Indonesian condiment maker. In February 2024, they launched a halal-certified Japanese-style curry under the brand name “Sasa House KARI JEPANG”, leveraging Sasa Inti’s distribution network across Indonesia.
In September 2025, House Foods broke ground on a new curry roux factory in Indonesia:
- Investment — Approximately IDR 340.8 billion (approx. USD 22 million)
- Production capacity — Approximately 3,000 tons per year, about 7 times current output
- Target launch — 2027
In other words, House Foods is already running both “making” and “selling” in ASEAN.
Meanwhile, S&B Foods had zero overseas factories until 2026, when it finally began building its first one. How to close this gap is another answer behind the question “why now?”
Why Thailand?
Thailand offers strategic advantages as an ASEAN export hub in three areas: raw material procurement, tariffs, and halal certification infrastructure.
The press release states that “Southeast Asia and Oceania show strong economic growth prospects” and “interest in Japanese cuisine is high.” But there are more specific reasons behind the choice.
1. AFTA (ASEAN Free Trade Area) makes intra-regional tariffs nearly zero
AFTA is an agreement to reduce tariffs on trade among the 10 ASEAN member states.
Products manufactured in Thailand and exported to Indonesia or Malaysia face tariffs of only 0–5% on most items — far lower than exporting from Japan.
The Thailand factory is not designed for “Thailand only.” It is designed as a supply base for all of ASEAN plus Oceania.
2. Thailand’s food manufacturing infrastructure is well-developed
Thailand’s food manufacturing industry ranks 14th globally (UNIDO INDSTAT, value-added basis, approximately USD 26.7 billion).
The raw material procurement environment is also excellent:
- Palm oil production ranks 3rd worldwide
- Sugar exports rank 2nd worldwide
- Tapioca starch — world’s largest producer
Most raw materials needed for instant curry (flour, palm oil, sugar, starch, spices) can be sourced domestically in Thailand.
3. Halal certification infrastructure exists
Halal certification verifies that food products comply with Islamic dietary laws.
Chulalongkorn University’s Halal Science Center in Thailand developed the Halal Assurance System (HAL-Q). Over 770 factories have adopted this system (as of 2022).
Thailand already has a well-established halal supply chain.
Halal Certification Opens Access to Indonesia’s 230 Million Consumers
Southeast Asia is home to the world’s largest Muslim market. Without halal certification, products cannot be placed on shelves in Indonesia or Malaysia.
The press release specifically mentions “halal-certified instant curry products.”
- Indonesia — Approximately 230 million Muslims. The world’s largest Muslim population
- Malaysia — Approximately 20 million Muslims. The world’s strictest halal certification standards
- Southern Philippines — Approximately 6 million Muslims, concentrated in Mindanao
S&B’s Golden Curry sold in Japan contains pork-derived gelatin, making it unsuitable for Muslim consumers.
However, adaptations have already begun for the Thai market.
I picked up a package of S&B “Torokeru Curry” at a Thai supermarket.
S&B “Torokeru Curry” sold at Big C. Note the “NO MEAT CONTAINED” label in the upper right corner (February 2026, photo by the author)
The upper right corner reads “NO MEAT CONTAINED.” Checking the ingredient list on the back reveals no gelatin. This is a different recipe from Golden Curry.
Back of the package showing ingredients. No gelatin listed. Note the “MADE IN JAPAN” label (February 2026, photo by the author)
The key detail is that the package says “MADE IN JAPAN.” Currently, these are produced in Japanese factories and exported to Thailand. Once the new Thai factory is operational, this will change to “MADE IN THAILAND.”
If the Thai factory achieves mass production of halal-certified products, the markets of 230 million Indonesian and 20 million Malaysian consumers open up.
Incidentally, S&B Foods also sells a Golden Curry variant for Taiwan with no garlic or onions. Taiwan has a vegetarian culture called “su shi” (素食), practiced by roughly 10–13% of the population. Based on Buddhist principles regarding five pungent vegetables (五葷), followers avoid garlic and alliums.
S&B is a company experienced in adapting recipes for different markets.
The Real Challenge: Who Sells Where?
S&B Foods is a manufacturing company. Sales in each country depend on local distributors. A factory solves only the “making” side of the equation.
The factory will be built. Raw materials can be sourced in Thailand. Halal certification can be obtained. Everything up to this point is “the manufacturing story.”
But products don’t sell unless they’re on the shelves.
Here is S&B Foods’ current overseas sales structure:
| Step | Responsible Party |
|---|---|
| Production at Japanese factories | S&B Foods (Japan headquarters) |
| Sales coordination for SE Asia & Oceania | S&B Foods Singapore (small sales office) |
| Sales in each country | Local distributors (sales agents) |
| Product placement on retail shelves | Via distributors |
S&B Foods is “the maker,” not “the seller.” Sales in each country are entrusted to local distributors.
This is a structure common to many Japanese food manufacturers.
Thailand’s Distribution Structure: Who Controls the Shelves?
Thailand’s food retail market is dominated by three conglomerates: CP Group, TCC Group, and Central Group.
If you want to sell food in Thailand, there are players you cannot avoid.
| Conglomerate | Major Chains | Characteristics |
|---|---|---|
| CP Group (Thailand’s largest) | 7-Eleven (~14,000 stores), Makro, Lotus’s (~2,000 stores) | Controls convenience stores, wholesale, and hypermarkets |
| TCC Group | Big C (operated via BJC) | Controls hypermarket shelf space |
| Central Group | Tops Market, Central Food Hall | Targets high-income consumers |
CP Group’s dominance is particularly overwhelming. In 2020, it acquired Tesco’s Thailand operations, bringing convenience stores (7-Eleven), wholesale (Makro), and hypermarkets (Lotus’s) — all three retail formats — under one umbrella.
It’s the distributor, not the manufacturer, who decides what goes on the shelf. No matter how good the product, it cannot reach shelves without going through a distributor.
Let’s look at the actual shelves in a Thai supermarket:
The Japanese food section at Big C. House Foods’ Vermont Curry (center) and S&B’s Golden Curry (lower right) side by side. All imported from Japan (February 2026, photo by the author)
This is the “imported food section” of a Thai supermarket. S&B’s Golden Curry and House Foods’ Vermont Curry sit next to each other.
- House Foods has more shelf space. Vermont Curry (147 baht) gets 5–6 facings; S&B Golden Curry (110 baht) gets 3–4 facings
- Japanese curry is classified as “imported food.” It’s not in the Thai curry section — it’s shelved alongside Kikkoman soy sauce and Haidilao hot pot base
- Price range is 110–184 baht (approx. USD 3–5). That’s 3–5 times more expensive than Thai curry paste (20–40 baht)
When the new Thai factory becomes operational, transport costs will drop and price competitiveness will improve. However, whether products actually make it to the shelves depends on the relationship with distributors.
Selling Across 5 ASEAN Countries Requires 5 Separate Distribution Channels
Even with a single factory in Thailand, distribution systems must be built separately for each ASEAN country. Halal certification systems also differ by country.
When exporting curry from the Thai factory to other ASEAN countries, each country requires a separate distributor.
| Country | Halal Certification Body | Major Retailers |
|---|---|---|
| Thailand | CICOT (Central Islamic Council of Thailand) | 7-Eleven, Big C, Tops |
| Indonesia | BPJPH (Halal Product Assurance Agency) | Indomaret/Alfamart, Super Indo |
| Malaysia | JAKIM (Dept. of Islamic Development Malaysia) | AEON, Giant, 99 Speedmart |
| Philippines | IDCP (Islamic Da’wah Council of the Philippines) | SM Supermarket, Robinsons |
| Vietnam | No halal certification system | Winmart, Co.opmart, Bach Hoa Xanh |
Even if halal certification is obtained in Thailand, separate certifications must be obtained from different bodies in Indonesia and Malaysia.
In other words, one factory, but five distribution systems required.
Can Japanese Curry Sell in Southeast Asia?
The global market for Japanese-style curry was approximately USD 1.24 billion in 2024 and is projected to grow to USD 2.5 billion by 2035 (CAGR 6.6%).
I’ll be honest.
I’ve lived in Thailand for 8 years, and my wife (who is Thai) doesn’t particularly like Japanese curry. She even worked part-time at a Japanese curry restaurant but never acquired a taste for it.
Japanese-style curry is mild to medium-spicy with a thick consistency, served over rice. Thai curry, by contrast, is coconut-based and spicy with a soupy texture. Indonesia’s rendang is a dry curry. They are fundamentally different dishes.
In Southeast Asia, Japanese curry is primarily eaten at Japanese restaurants. There is almost no culture of making Japanese-style curry at home.
However, the market is growing. According to WiseGuy Reports, Southeast Asia is identified as “an emerging market with significant growth potential.”
S&B Foods’ bet is that after sushi and ramen, curry will be the next wave of the Japanese food boom.
The Real Work Begins After the Factory Is Built
S&B Foods’ new Thailand factory is a rational manufacturing decision, but building the “selling power” is still ahead.
Raw materials can be sourced in Thailand. AFTA enables low-cost exports within ASEAN. Halal certification infrastructure is already in place.
But a factory solves only the “making” side.
Building distributor networks in each country. Country-by-country halal certification. Building consumer awareness locally. All of this remains ahead.
For a company with 10% overseas revenue aiming for 40%, the real work begins after the factory is built.
【Sources】
- S&B Foods “Strengthening Growth Foundation in Overseas Business: Start of New Factory Construction in Thailand” January 30, 2026
- S&B Foods “S&B Foods Report 2025 (Integrated Report)” P25-27 Overseas Business, P57-58 Key Financial Indicators
- S&B Foods “Golden Curry Ingredients & Allergen Information” Official FAQ
- S&B Foods Global Site “Golden Curry Sauce Mix for Vegetarians 220g (Only for Taiwan)” Product Information
- House Foods Group “Announcement of Joint Venture Establishment in Indonesia” November 8, 2022
- House Foods Group “Announcement of Production Subsidiary Establishment in Indonesia” April 18, 2025
- House Foods Group “House Foods Group in Numbers” Official Website
- UNIDO “INDSTAT Rev.4” Food Manufacturing (ISIC 10) Value-Added Data
- WiseGuy Reports “Japanese Curry Market Research: In-Depth Study 2035”
- Chulalongkorn University Halal Science Center “Press Release” September 2022, PR Newswire APAC
About the Researcher
Takashi Kinoshita — CEO, Taitonmai Co., Ltd.
- M.A., Osaka University Graduate School
- 8 years in procurement at SHARP Corporation
- Including 2 years stationed at SHARP’s Thailand factory as Procurement Manager, leading local staff
- Sole Japanese manager on-site; conducted procurement operations in English and Thai
- After independence, completed corporate research covering 80+ countries and 10,000+ companies