Oishi Group Plc has entered into a distribution agreement with Malaysia's F&N Beverages Marketing Sdn Bhd (F&N Beverages) to sell its bottled green tea in 1,460 7-Eleven stores in Malaysia.
The company aims to be among top players in the Malaysian RTD green tea market within three years by establishing a solid network of outlets including retail stores and eateries.
Matthew Kichodhan, the company's president, said Malaysia is a major step for Oishi to enter international markets.
F&N is Malaysia's largest soft drink distributor and manufacturer accounting for a 27% market share. It has the largest distribution network with 72,000 outlets, 411 van routes, 60,000 coolers and 5,100 vending machines. It has five manufacturing plants nationwide for soft drink production.
Oishi estimates the bottled tea market in Malaysia at two billion baht, with the black tea segment accounting for 56% of the market and the green tea segment 40%.
He said the ready-to-drink (RTD) tea market is growing quickly in Malaysia, but per capital consumption is still low at 0.94 litres per person per year, compared with 5.8 litres in Thailand. Oishi sees an opportunity to establish its brand in Malaysia, a part of its goal in becoming a global brand.
F&N Holdings Bhd chief executive officer Ng Jui Sia,said that by the end of 2013 Oishi green tea will be available in 3,800 convenience stores and petrol stations throughout Malaysia.
In the near future, Oishi aims towards localised production in Malaysia for further expansion to Brunei and Singapore.
Mr Matthew said Oishi Group decided to expand its presence in international markets aggressively after enjoying overwhelming success in Laos and Cambodia over the past decade. The company is also off to a good start in EU markets.