Sermsuk Plc, the bottler of Est cola, is spending 1.1 billion baht to expand its production facilities and ensure long-term sustainable growth.
President Dhitivute Bulsook said the company will add two new lines to increase production capacity for drinking water by 25%, while capacity for carbonated soft drinks in PET bottles will rise by 30%.
Sermsuk will also upgrade efficiency and speed at five plants in Pathum Thani, Chon Buri, Nakhon Sawan, Surat Thani and Nakhon Ratchasima.
The company will focus on tools to increase sales and distribution with enhanced network coverage.
At the same time, it is broadening its product portfolio with yesterday's relaunch of Wrangyer energy drink.
Sermsuk bought Wrangyer Beverage (2008) Co, the maker of Wrangyer energy drink and Power Plus sports drink, for 248 million baht late last year.
Parinya Permpanich, Sermsuk's sales director, expects Wrangyer to become No.2 in Thailand's 20-billion-baht energy drink market within five years. Sales are forecast at 1 billion baht in the first year.
Osotspa's M-150 is the current leader with a 48% market share, followed by Carabao Dang (18%) and Krating Daeng (16%).
Both M-150 and Carabao Dang were distributed by Sermsuk at times during the past 27 years.
Mr Parinya said the energy drink market grew by 11% in 2012 and should rise by 15% this year as the improving economy creates more investment in all business sectors, resulting in better incomes for workers.
Sermsuk is set to spend 100 million baht to promote Wrangyer as the energy drink choice for modern people who work hard.
Apart from Wrangyer, the company is always looking for other food and drink to distribute through its vast sales network.
Last year, Sermsuk reported a net profit of 600 million baht, up from 100-200 million baht in years past, on revenue totalling 23.2 billion baht.
"It was the highest year for our net profit after 60 years in Thailand," said Mr Dhitivute.
The sharp rise was due to outstanding performance from all products under distribution, he said.
Sermsuk is striving to sell more profit-generating products and increase its management efficiency.
Shares of SSC closed yesterday on the Stock Exchange of Thailand at 220 baht, down three baht, in trade worth 1.61 million baht.
About the author
- Writer: Pitsinee Jitpleecheep
Position: Business Reporter