Bireley’s and Green Spot, two of Thailand’s most popular orange-flavoured beverage brands over the last 60 years, are seeking new owners who want to recapitalise on their past glory.
The distinct shape of the Bireley’s bottle dates back to 1948. SARANYAPORN TAPAONOI
Bireley’s has successfully found Ichitan Group Plc, the producer of Ichitan ready-to-drink green tea, as its new owner to revive the dying brand.
Meanwhile, Green Spot brand is in the process of finding a new owner or a new partner.
An industry source said Chote Sophonpanich, a major shareholder in Green Spot Co, is negotiating to sell it to a beverage company owned by whisky tycoon Charoen Sirivadhanabhakdi.
“Bireley’s and Green Spot have been quiet in the Thai beverage market for several years but their brand values remain strong. More importantly, the taste is good enough to do marketing support to rebuild the brands again,” the source said.
Ichitan yesterday announced it will pay 240 million baht to buy the manufacturing formula and trademark of Bireley’s from Sunny Herb International Beverage Co.
Tan Passakornnatee, founder and president of the Ichitan Group, informed the Stock Exchange of Thailand that the purchase of Bireley’s formula and trademark will cover Cambodia, South Korea, Canada, Myanmar, the Philippines, Malaysia, Singapore, the US, China, India, Hong Kong, Bangladesh, Indonesia, Taiwan and Vietnam as well as Thailand.
In Japan, Asahi has the rights to produce and market Bireley’s beverages for the local market.
“We got a good deal. Bireley’s has a long history worldwide and about 66 years in Thailand. Many people know about it and the taste is very good,” Mr Tan said.
Prior to this, the owner of Bireley’s considered making a deal with Sermsuk Plc, the bottler of Est soft drinks, before the company ended its relationship with Pepsi-Cola (Thai) Trading Co, the trademark owner of Pepsi.
Mr Tan said the company acquired Bireley’s because it wanted to make a business shortcut and extend its product portfolio from ready-to-drink green tea, which faces fierce competition as the market is made up of several big players.
Ichitan will re-market Bireley’s in the country in the fourth quarter of this year. It will produce two flavours of Bireley’s, orange and grape, at its Rojana factory or hire an original equipment manufacturer. The company expects sales of 200 million baht from Bireley’s during the first couple of months of sales.
Apart from buying Bireley’s, the company also plans to spend another 244 million baht to buy a 74-rai plot near its current factory at Rojana Industrial Estate in Ayutthaya province.
The company will spend 1.29 billion baht to build its new beverage factory during 2016-17.
A source from a leading advertising agency said the purchase of the Bireley’s brand for 240 million baht is a good deal compared with the 10-billion-baht market value of flavoured drinks.
The California-born orange soda drink has a valuable asset in terms of branding, making its reputation in the market for more than 50 years in Thailand, and the older generation is aware of the brand.
“Bireley’s brand in Thailand is like a vintage car left in the car park waiting for a good driver,” the source said.
After its acquisition by the green tea veteran, Bireley’s reputation should pick up again, particularly among target customers in provincial areas.
ICHI shares closed yesterday on the SET at 25.50 baht, up 1.20 baht, in brisk trade worth 3.69 billion baht.