Suntory PepsiCo Beverage (Thailand) Co, the manufacturer and distributor of beverages under the Suntory and PepsiCo brands in Thailand, wants to grow its business by 2-3 times the average industry level over the next five years.
The company also pledges to cap its product prices, even as the third stage of the excise tax hike for sugar-sweetened beverages comes into effect on Saturday.
"The excise tax hike will definitely affect beverage companies, but even with higher operating costs, raising prices would be our last option," said Ashish Joshi, the company's chief executive.
Anawat Sangkhasap, the company's chief marketing officer, said the non-alcoholic beverage market is estimated at 150-200 billion baht a year, growing 2-3% this year.
According to Mr Anawat, the company is committed to allocating 100-500 million baht a year to new brands.
However, the number of new brands launched in the market depends on the market, he said.
In addition to new brands, Suntory PepsiCo aims to develop new products under its existing nine brands, aligning with consumer demand and market growth, said Mr Anawat.
The new products include colas, which contribute 72% to its carbonated drinks segment.
The company also wants to focus more on tapping into carbonated soft drinks with functional benefits, reaching consumers looking for healthy and refreshing drinks, he said.
Mr Anawat said Suntory PepsiCo plans to bolster its no-sugar cola products as the overall market increased five times the past five years, attributed to a health-conscious trend.
The company also aims to explore opportunities by strengthening its presence in the ready-to-drink tea and coffee markets, as overall demand in these segments grew by 23% and 11%, respectively, in 2022.
Mr Anawat said Suntory PepsiCo will ramp up efforts in the energy drink sector, which is projected to remain a growth category over the next five years.
In addition to new products, he said the company wants to raise its brand awareness among consumers, increasing engagement via 22 marketing campaigns throughout 2023.
Suntory PepsiCo plans to allocate 1 billion baht for its marketing budget this year, said Mr Anawat.
The company is a joint venture formed in 2018 between Suntory Beverage & Food Ltd, a leading beverage manufacturer from Japan, and PepsiCo Inc, a global leader in food and beverage businesses from the US.