SATS commits over S$3m to invest in food startups and projects

SATS S58 : S58 0%, which provides food solutions and gateway services, has committed over S$3 million with support from Singapore's Economic Development Board (EDB) as part of a corporate venturing push.

The group's food solutions venture building arm is rolling out a series of ventures to grow its non-travel food business, SATS said in a press statement on Wednesday (Nov 10).

Through corporate venturing, SATS will ideate, incubate and grow innovative new business models. Projects that exhibit growth potential in the post-incubation phases will become independent startups or be incorporated into SATS main operations.

For starters, the group's venture arm has initiated a hybrid kitchen model that aggregates demand through its integrated supply chain and the large-batch production of meal components such as soups and sauces in central kitchens. The Housemen's Canteen at Singapore General Hospital - which offers contactless dining - is a proof of concept for these capabilities.

"SMEs and partners who collaborate with SATS will gain scale efficiencies and quicker R&D turnaround without having to invest in these capabilities on their own," SATS said.

It is also collaborating with local food and beverage (F&B) brands to introduce them to new market segments. One example is ready-to-cook Farmpride Signatures products - a tie up with Keng Eng Kee Seafood.

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SATS has also brought signature dishes from Bismillah Biryani Restaurant and Boon Tong Kee as in-flight dishes for Singapore Airlines' Singapore showcase menu launched in September 2021.

EDB executive vice-president Choo Heng Tong said SATS' initiative "will 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".

SATS president and chief executive officer designate Kerry Mok said: "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."

Shares of SATS were trading 1.4 per cent or S$0.06 lower at S$4.19 as at 1.32 pm on Wednesday.