Haadthip Plc plans to manufacture alcoholic beverages in Thailand, encouraged by the tourism boom in the southern region.
Maj Gen Patchara Rattakul, chief executive of Haadthip, said the company is planning to introduce licensed alcoholic beverage brands under the Coca-Cola Company in Thailand.
The company did not provide a timeline for the launch.
Haadthip is the exclusive bottler for Coca-Cola and a range of its beverages in the southern provinces of Thailand, covering 12 brands such as Minute Maid Splash and Namthip drinking water.
Maj Gen Patchara said the country's tourism industry is recovering. The company expects foreign arrivals to total 30 million this year, less than the government target of 35 million.
According to Tourism and Sports Ministry data, foreign arrivals tallied 6.7 million year to date, accounting for 20% of the full-year projection of 35-40 million by the Tourism Authority of Thailand.
The Meteorological Department forecasts the overall temperature throughout Thailand during the hot season will be higher than last year by 1-2 degrees Celsius, with highs of 40-41 degrees Celsius in the South.
In 2023, Haadthip recorded total revenue of 7.8 billion baht, a high for the past five years and up 13.6% from 2022.
Net profit reached 598 million baht, up 38.8% from 2022.
Maj Gen Patchara said that Haadthip recorded total revenue of 7.8 billion baht in 2023. This is a high for the past five years and an increase of 13.6% from 2022.
With the promising tourism outlook in the South and the scorching forecast, the company anticipates growth of 6-8% this year.
"Soft drink sales in the southern market have a higher growth rate than in other regions," Maj Gen Patchara said.
He said the company plans to invest 800 million baht to add a new production line for glass bottle products at its facility in Poon Pin district, Surat Thani province, which is slated for completion by the fourth quarter of 2024.
The investment will cause the proportion of sales of glass bottle products to increase to 4.5-5% within the next 2-3 years from the current proportion of 3%.
It will also be a better way to reduce packaging costs in the long term.
"We believe glass bottles will allow us to manage packaging material costs better as they are fully recyclable, reducing the use of plastic for packaging as we aim to meet our sustainability commitments," said Maj Gen Patchara.
Coca Cola bottles are manufactured at a factory of Haadthip Plc. The firm recorded total revenue of 7.8 billion baht in 2023. This is a high for the past five years and an increase of 13.6% from 2022.
Moreover, the company also plans to invest 500 million baht to expand a warehouse in Surat Thani by 10,000 square metres.
Haadthip also plans to introduce new products tailored to the preferences of Thai consumers, he said.
The company sees significant opportunities in expanding its zero-sugar beverage segment, which posted 31% growth in 2023.
"Zero-sugar beverages account for only 3% of the company's total sales revenue, but we aim to increase that segment to 10% in five years," said Maj Gen Patchara.
Haadthip aims to solidify its market leadership in the 14 southern provinces, targeting 15 billion baht in sales and a 35% market share of non-alcoholic ready-to-drink beverages by 2032, he said.