Fierce domestic competition is pushing Malee Sampran Plc, maker of Malee-brand fruit juices, to explore business opportunities abroad.
It will join hands with Monde Nissin Corporation, a Filipino food company, to launch a beverage business together in the Philippines next year.
Chief executive and chairman Chatchai Boonyarat said the new joint venture, Monde Malee Beverage Corporation, was set up with 75 million baht in registered capital.
Monde Nissin and Malee each hold a 49% stake in the joint venture, with the remaining 2% belonging to individual investors.
Under the partnership, Malee beverage products will in next year's first quarter be exported for sale in the Philippines.
Malee will take care of production while Monde Nissin looks after distribution, sales and marketing.
"We decided to expand our business internationally because the Thai beverage market is growing slower than in the past," Mr Chatchai said.
The fruit juice market in the Philippines is valued at 8 billion baht and faces less competition than in Thailand.
Thailand has a population of 70 million, while the Philippines has the second-largest population in Asean at 102 million, after Indonesia's 255 million.
Mr Chatchai said the beverage market in the Philippines shows strong growth.
Both the economy and GDP growth are improving continuously, he said.
The purchasing power of consumers there is increasing in line with the rising number of middle-income earners.
The overall beverage market in the Philippines excluding alcoholic beverages is worth 200 billion baht with average annual growth of 8%.
Mr Chatchai believes the market will only grow further.
"But the market remains in the infant stage with a limited variety of products, while the products are less sophisticated compared with the Thai market," he added.
Henry Soesanto, executive vice-president of Monde Nissin, said the joint venture would strengthen both parties.
Malee has lengthy experience in the beverage business, with a competitive advantage in product development and innovation, he said.
At the same time, Monde Nissin has a deep understanding of Filipino consumers along with strengths in marketing, brand building and distribution across channels throughout the country.
Sales of the new joint venture are expected to reach 1 billion baht in 2017, jumping to 5 billion within five years.