Japan-based pharmaceutical and medical device manufacturer Otsuka Pharmaceutical will use Thailand as a springboard to expand its beverage business in Asean.
This year, the company joined up with Saha Group, Thailand's leading consumer products conglomerate, to expand its health drink business in the country.
Otsuka Nutraceutical Thailand Co was established in May, 2017 with registered capital of 300 million baht.
Otsuka Nutraceutical is a joint venture between Otsuka Pharmaceutical Co (Japan), which holds a 90% stake in the venture, Thai Otsuka Pharmaceutical Co (5%), Saha Pattana Inter-Holdings (2.5%), and Saha Pathanapibul Plc (2.5%).
Otsuka Pharmaceutical introduced its Pocari Sweat brand beverages to Thailand 19 years ago. Kabe-Ya Shokuhin Kogyo Co distributes its drinks to supermarkets in Japan while Saha Pathanapibul handles distribution of the brand in Thai retail outlets.
Takayuki Kushida, managing director of Otsuka Nutraceutical Thailand Co, said the company established the joint venture after growth in the health beverage and food sectors.
Pocari Sweat products are sold in Cambodia and Laos through local distributors, and in Indonesia, Vietnam and the Philippines through Otsuka joint ventures.
"It is my personal dream to use Thailand as an export hub to Asean. Asean consumers, particularly those in Myanmar and Cambodia trust Thai-made products," he said.
A factory in Thailand is on the table within the next 10 years, when Pocari Sweat sales reach 50 million bottles per year.
The company recently reintroduced Pocari Sweat to Thailand's 2.2 billion baht electrolyte drink market. Pocari Sweat targets health-conscious consumers between 25-44 years old. The company is investing over 100 million baht in brand awareness this year, and expects sales to grow 30% from 2016, said Mr Kushida.
In the near future, the company plans to launch beverages other than Pocari Sweat in the Thai Market.
"We want to become a total healthcare company in Thailand," Mr Kushida said.