CP Group subsidiary True Lifestyle Retail Co will debut True Vitamin Water infused drinks nationwide today to grab a slice of Thailand's beverage market estimated to be worth 5 billion baht next year.
The firm has hinted at the possibility of listing on the stock market by 2024 if it can report three consecutive years' profits and produce yearly revenue that exceeds 1 billion baht.
Should an IPO take place, True Lifestyle Retail Co would be the first subsidiary under CP Group to go public.
Papon Ratanachaikanont, True Lifestyle Retail Co's president of food chain and coffee house, told Bangkok Post that the ambitious plan is a result of CP's successful penetration of the fast-moving consumer goods (FMCG) market.
"True Lifestyle Retail Co doesn't just focus on the restaurant business because it is not sustainable for long-term growth. Our competitive edge over others lies in CP's logistics and supply chain," said Mr Papon.
"So, we have been releasing FMCG products to the market, starting with our core product True Coffee then True Vitamin Water following suit because these are beverages that share the theme of helping consumers feel more energised."
Earlier in April, True Lifestyle Retail Co started selling its signature True Coffee in a ready-to-drink format at 39 baht in convenience stores and supermarkets across the country.
It has sold over 3 million cans in the past six months, resulting in a 25% share of the premium beverages priced at 30-40 baht at 7-Eleven convenience stores.
The solid sales accelerated True Lifestyle Retail Co to release more FMCG products. With that, the new brainchild of CP Group chief executive Suphachai Chearavanont called True Vitamin Water was born.
Mr Papon estimated that True Vitamin Water would sell about 3 million bottles within the quarter following its launch and the firm would report about $500 million in revenue with about 10% in profits by the end of 2021.
Branded as "energised flavourful vitamin water", True Vitamin Water differs from beverages widely available in the Thai market because it is a mix of vitamin-infused water and sports-themed drinks containing several minerals.
The new drink comes in two flavours, "Care" and "Alive", and retails at 25 baht per bottle.
The Care flavour showcases a light orange colour, while the Alive flavour has a soft pinkish-purple hue from the blend of purple carrots and other exotic fruits. They are distributed via True Coffee shops and all 7-Eleven convenience stores nationwide starting from today.
"Based on our extensive market research, we were able to identify True Lifestyle Retail Co's underserved markets. These are True consumers that love to engage in active activities like exercise or travelling while others are into products that enhance their health, beauty and overall development," Mr Papon said.
"These smart consumers know the benefits of vitamins well, so we wanted to ignite their love for our new beverages by asking them to discover a new experience that vitamin water provides. Hence, our slogan is 'drink to every new beginning'."
Besides the newly launched vitamin water, True Lifestyle Retail also plans to fuel further growth for its core business of True Coffee by releasing more products next year. These include micro coffee roasters imported from South Korea, which could retail at 3,000 baht though the final price tag has not been finalised.
True Coffee started about 15 years ago as a side business to complement and enhance consumer experience at True Internet Cafe. Over time the side business developed into 120 full cafes across Thailand and internationally including Myanmar, China and Laos.
In addition, True also created another business called True Coffee Go. This recent pandemic-induced venture targets coffee lovers who are "on the go" and prefer contactless or delivery service.
True Coffee Go now has 64 stores nationwide. The company also operates multiple French bakeries in the Bangkok area under Paul and Gontran Cherrier.