The battle between Sermsuk Plc and Pepsi-Cola Trading (Thailand) has left a chasm for rival Coca-Cola (Thailand) to capture market share, claiming the No.1 slot in the overall soft drink market for the first time in 25 years.
(From left) Antonio Rosario, general manager of Coca- Cola (Thailand) Ltd, Pornwut Sarasin, vice-chairman of ThaiNamthip, and Maj Gen Patchara Rattakul, chief operating officer of Haad Thip, at the briefing yesterday. Coca-Cola (Thailand) executives announce their expansion plans while also celebrating market leadership for the first time in two and a half decades. PATTARACHAI PREECHAPANICH
Coca-Cola (Thailand) said Coke's market share on December of 2012 was jumped to 50% and Big Cola also gained more share taken from former market leader Pepsi.
While, Sermsuk's new brand 'est', which launched only four months ago, reported a 19% market share as of February, 2013 with Pepsi fell deeper. Est aims to reach No.2 by the end of this year.
Thailand's carbonated drink market is valued at 44 billion baht.
Sales of Coca-Cola (Thailand) grew by 23% to a record 30 billion baht last year.
"The growth rate of Coke alone was 32% last year, the highest in 10 years. Globally Coke grew at the second fastest pace in Thailand after India, after finishing in the top 20 the previous year," said Antonio Rosario, general manager of Coca-Cola (Thailand) Ltd.
In terms of volume, Coca-Cola Thailand ranks 19th out of 200 countries where Coca-Cola is sold.
"We aim to double our sales to 60 billion baht by 2020, with Coca-Cola doubling globally over the same period," he said.
The company plans continuous investment in Thailand, with 1.4 billion baht slated for a new factory in Surat Thani province operated by Haad Thip Plc, he said. The production capacity of soft drinks in PET bottles will rise 200% to 15 million bottles per year. Operations at the new PET factory will start next month.
Thai Amianthus, the local bottler of Coke, Fanta and Sprite, plans to spend 2.6 billion baht this year to install new machines at factories in Rangsit and Pathum Thani, raising capacity by 35%.
"Last year was the first time in 54 years that ThaiNamthip gained market leadership in all categories we competed in," said Pornwut Sarasin, vice-chairman of ThaiNamthip.
Maj Gen Patchara Rattakul, chief operating officer of Haad Thip, said Coke became the market leader in cola drinks in the southern, northern and northeastern provinces a long time ago. Only in the central region and Greater Bangkok area did Coke have weak advertising, distribution, products management, he added.
Mr Pornwut said the company invested heavily in its logistics and distribution network the past six years, which has led to better results.