Coke sales fizz as Pepsi spat leaves it flat

Coke sales fizz as Pepsi spat leaves it flat

ThaiNamthip Co, the local Coca-Cola maker, is enjoying a windfall with resurgent sales after its arch rival Pepsi changed its bottler and distribution network.

Mr Archawat, the public affairs director at Coca-Cola (Thailand), believes competition is good.

As of Nov 30, the market share of the Coca-Cola soft drink family including Coke, Fanta and Sprite had increased to 55% of carbonated soft drinks.

The figures are based on a survey by ACNielsen, the market research firm.

A beverage industry source emphasised the market share of Coca-Cola by the end of this month should exceed 55%, the highest since it started sales in Thailand more than 50 years ago.

Pepsi ended its business ties with long-time bottler Serm Suk Co on Nov 1, and the latter decided to make its own cola under the "est" brand.

Both Pepsi and est disappeared from shelves for a long while, giving Coca-Cola an opportunity to gain higher than expected sales, especially from restaurants as Pepsi Cola (Thai) Trading Co does not make Pepsi in glass bottles, which restaurants prefer to use.

Glass bottles are costlier to deliver than cans, and only Coca-Cola and est deliver using glass bottles.

Due to the excessive demand, ThaiNamthip is considering which level of sales is sustainable.

It is highly likely the bottler will spend at least 1 billion baht next year to expand production capacity to meet market growth, as all its factories are already at full capacity, said the source.

ThaiNamthip will increase capacity at plants in Rangsit, Hua Mak and Pathum Thani to serve ongoing strong sales, especially in the central region, added the source.

Archawat Chareonsilp, the public affairs and communications director at Coca-Cola (Thailand), agreed 2012 was a big step forward in both the soft drink and juice markets.

The overall non-alcohol ready-to-drink sector increased by 10% as of September and the carbonated beverage segment by 13% as of last month for a value of 43 billion baht.

The Coca-Cola family's soft drink sales grew 24% year-to-date in November, ahead of overall carbonated drink sales, which grew at only 13%.

The company expects the carbonated beverage segment in Thailand will grow by 7-8 % next year.

Mr Archawat said the added competition in the market is good for the industry and the economy.

It will mean a greater investment as each producer and brand works harder on marketing and distribution.

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