Add a little bit of Twyst

■ We attended the soft launch of Twyst, a new F&B concept by SATS’s food solutions ventures arm that explores growth opportunities for the segment.
■ Twyst features SATS’s food solutions brands and products, while partnering with corporates and brands such as SMRT and Tiong Hoe Specialty Coffee.
■ Success will be a nudge towards growing business to group’s target revenue of S$3bn by FY25, and could pave the way for scaling of future ventures.

Featuring SATS food solutions across more downstream channels

The launch of Twyst as a casual dining pasta restaurant is the first of its kind for SATS’s food solutions segment, which consists of inflight and institutional catering, food processing, distribution and airline laundry services. Twyst serves pasta from its chef’s signature menu and also offers customers ‘make-your-own’ options. The meals are freshly prepared using ingredients from SATS’s food solutions segment, and pasta sauces prepared from its central kitchens. Apart from its pasta mains, Twyst also sells breakfast
and dessert items such as paninis, muffins and cakes from Europastry, one of the brands under SATS’s wholly-owned subsidiary, Country Foods. The new F&B dining concept comes on the back of SATS’s launch of its direct-to-consumer contactless dining concept at Housemen’s Canteen in Singapore General Hospital (SGH), as SATS sets its sights on growing the size of its non-aviation business within the food solutions segment.

Leveraging partnerships to gain traction

Twyst is an amalgamation of efforts between SATS and its partners and vendors, such as SMRT and Tiong Hoe Specialty Coffee. Partnering with the locally-renowned coffee roaster Tiong Hoe means that SATS could draw in crowds to introduce the new dining concept to gain visibility and hopefully accelerate business momentum. We believe this could bring visibility to the brands under SATS’s food solutions portfolio and also pave the way for future ventures in collaboration with other brands to introduce new concept stores featuring SATS’s food solutions which could help drive business volumes.

Small step towards bigger ambitions

We maintain our Hold call on SATS with DCF-based TP of S$4.32. SATS’s move to further diversify its food solutions business away from the travel-related industry is a welcomed one as local consumption should prove to be more resilient as we move beyond the uncertainties brought about by the pandemic. In the near term, the travel-related segment within food solutions is likely to remain subdued. From our understanding, despite travel reopening, air traffic may be mainly driven by short-distance flights, which typically do not experience strong demand for in-flight meal services. Upside risks include a swifter recovery in air travel and downside risks include potential tightening of travel arrangements.