Pepsi Co Loses Long-Time Bottler In Thailand

[BookMan]

People can always drink water. It tastes better and u don't get fat.

Pepsi and Coke both have various models to suit everyone's taste

Edited December 7, 2012 by BookMan

[jbrain]

At Seven last week for every so much you spent you could purchase a 480ml Est for just 10 baht. Coke Zero seems hard to find in large bottles in supermarkets yet again, never been a consistent supply since the flood.

Where I have grown up, clearly not in Thailand, and it doesn't the name Coca Cola or Pepsi it has to be half price if you intend to sell a single bottle.

After all, even at that half price it's still more expensive than the real thing in Thailand.

[draftvader]

Peeved about this Pepsi thing, the so called "same thing", est or everlasting shit taste, is just a Thai rip off. Pepsi obviously did not pay enough of a backhander. ;-)

No, they didn't offer enough for the company's shares. Shadows of the Pizza Hut / Pizza Company debacle. And we know which has come out on top (by far).

Yes, Pizza Hut. 12,800 restaurants in over 90 countries in the world. Pizza Company. 200 restaurants in 1 country. I know which one has come out on top. If the Est brand steps into most other countries they will have to change their branding significantly to avoid being beaten to death by Pepsi.

Why mention worldwide figures - we are talking about here in Thailand, where Pizza Company outnumbers Pizza Hut around two to one. I should think that that proves his point.

I mentioned worldwide figures because the comparison was Pizza Hut/The Pizza Company. Both are international concerns. Compared in Thailand, yes, we can all see that a back-room deal that would not work in most other countries has put paid to Pizza Hut. However, where it really matters to the business owners Pizza Hut (Yum Group) is the total global revenue. In simple terms Yum Group earned 250% of what The Pizza Company owned in 2011.

Sure, in Thailand, The Pizza Company is bigger. However, when comparing businesses, they are much much smaller.

[overherebc]

At Seven last week for every so much you spent you could purchase a 480ml Est for just 10 baht. Coke Zero seems hard to find in large bottles in supermarkets yet again, never been a consistent supply since the flood.

Where I have grown up, clearly not in Thailand, and it doesn't the name Coca Cola or Pepsi it has to be half price if you intend to sell a single bottle.

After all, even at that half price it's still more expensive than the real thing in Thailand.

out of interest, what's the price difference between 5 litres of cepsipola and 5 litres of 5 star in UK ?.

And will people stop going on about Tunnocks caramel wafers, I'm geeting withdrawal symptoms all over again

[NewlyMintedThai]

Well, duh?

Fact is, Yum arrogantly did not recognize the value of their alliance partner in Thailand, and as a result lost 2/3 of the market here.

Epic fail.

Looks like a similar scenario for Pepsico, but time will tell.

[jbrain]

At Seven last week for every so much you spent you could purchase a 480ml Est for just 10 baht. Coke Zero seems hard to find in large bottles in supermarkets yet again, never been a consistent supply since the flood.

Where I have grown up, clearly not in Thailand, and it doesn't the name Coca Cola or Pepsi it has to be half price if you intend to sell a single bottle.

After all, even at that half price it's still more expensive than the real thing in Thailand.

out of interest, what's the price difference between 5 litres of cepsipola and 5 litres of 5 star in UK ?.

And will people stop going on about Tunnocks caramel wafers, I'm geeting withdrawal symptoms all over again

I'm not from the UK, but in my country a 1.5 liter bottle of coke or pepsi is now the equivalent of 60 Bht while a no name cola is less than 30 Bht.

[jbrain]

Well, duh?

Fact is, Yum arrogantly did not recognize the value of their alliance partner in Thailand, and as a result lost 2/3 of the market here.

Epic fail.

Looks like a similar scenario for Pepsico, but time will tell.

You mean they should have allowed to be robbed in daylight by their Thai partner ?

[marstons]

http://www.nationmul...s-30191702.html Pepsi is alive and well, the factory in Rayong is producing already. Edited December 8, 2012 by marstons

[NewlyMintedThai]

Well, duh?

Fact is, Yum arrogantly did not recognize the value of their alliance partner in Thailand, and as a result lost 2/3 of the market here.

Epic fail.

Looks like a similar scenario for Pepsico, but time will tell.

You mean they should have allowed to be robbed in daylight by their Thai partner ?

Why do you say "robbed"?

I've seen this time and time again. Foreign company appoints agent/licensee/dealer. They do smash-up business, develop the market, and make the product a household name.

Then foreign company says, "thanks very much, looks easy, we'll take it from here, see ya".

Arrogant foreign company has no knowledge of local market and falls flat on its face.

Former agent/licensee builds a new brand and dominates the market with their vastly superior local knowledge and networks.

I say good on 'em.

[Xonax]

http://www.nationmul...s-30191702.html Pepsi is alive and well, the factory in Rayong is producing already.

They may be producing, but the shelves i BKK shops has been empty for quite a while now. What a bunch of amateurs!

[jbrain]

Well, duh?

Fact is, Yum arrogantly did not recognize the value of their alliance partner in Thailand, and as a result lost 2/3 of the market here.

Epic fail.

Looks like a similar scenario for Pepsico, but time will tell.

You mean they should have allowed to be robbed in daylight by their Thai partner ?

Why do you say "robbed"?

I've seen this time and time again. Foreign company appoints agent/licensee/dealer. They do smash-up business, develop the market, and make the product a household name.

Then foreign company says, "thanks very much, looks easy, we'll take it from here, see ya".

Arrogant foreign company has no knowledge of local market and falls flat on its face.

Former agent/licensee builds a new brand and dominates the market with their vastly superior local knowledge and networks.

I say good on 'em.

You really think that Pepsi would need anyone to make it a household name anywhere in the world ?

Don't you think that it's more like the local dealer got the privilege to distribute a product that doesn't need an introduction, anywhere in the world, but got too greedy as so many times happens in this country.

Remember when Carlsberg left this country a decade ago, and which was the reason ?

And now that local dealer is abusing the network he was only able to build because he was distrubuting a worldwide recognised product, for pushing his own product.

Let's see how long it lasts.

[NewlyMintedThai]

They built the network.

They made Thailand one of the few places in the world where Pepsi outsold Coke.

Pepsi didn't value what Serm Suk brought to the table. Now they'll pay.

Just like Yum Brands.

Can't find Pepsi at all in my area anymore.

Edited December 20, 2012 by NewlyMintedThai

[jbrain]

They built the network.

They made Thailand one of the few places in the world where Pepsi outsold Coke.

Pepsi didn't value what Serm Suk brought to the table. Now they'll pay.

Just like Yum Brands.

Can't find Pepsi at all in my area anymore.

They built a network the easy way because they had a product that didn't need any introduction.It outsold coke because they were the first on the Thai market.

Pepsi kicked out Serm suk because they got to greedy, and built a new plant which is one of their biggest worldwide. They have signed a contract with DHL to do their distribution and are investing 18 Billion Baht to make sure that that perm suk's new cola brand will be an underdog.

[farang000999]

Is EST any good?

[straycat911]

I don't think est is good. I Tried it and It left a bad taste in my mouth. Don't think its drinkable and very very sweet

Sent from my MID-GSM using Thaivisa Connect App

[ignis]

So far well done Pepsi........

I drink Pepsi Max, but as was always a problem to get also drank Coke Zero, so most of the time had to buy whatever was in stock if any.....

Last few weeks, no problem as always appears to be Pepsi Max, Monday take my 2x big packs from Big C, still left them with 15 packs.. Coke Zero still the same hit and miss affair Non at Big C

[longball53098]

Pepsi has virtually disappeared from the local shops and Tesco here in Ban Chang, Rayong. Asking the locals they say no more Pepsi only the Est product.

I think Pepsi bit off more than they could chew when they cut out Serm Suk and it will take a huge effort to get their business cranked up to full production and distribution again. Serm Suk is going to stick the knife in every chance they get and my guess will do whatever it takes to shut off Pepsi. Pepsi has pee'd off Serm Suk and they don't like it.

[Briggsy]

No sugar free fizzy drinks in my local shops at all.

Typical Thai monopoly or effective monopoly situation is coming about. The consumer loses choice and/or pays more.

[Xonax]

If Pepsi has been producing in their new plant since 1. November, as published in the media, makes me wonder, if someone is paying the shops, to keep Pepsi out of the shelves and favor the new ETS brand instead. As for the Pepsi distribution, DHL Thailand may have bitten a bit more of, than they can chew.

[Briggsy]

As I mentioned earlier in this thread, Thai Beverage used "bundling" of Chang and Saeng Som to force retailers to stock up with tons of Chang when it was first introduced. The tactic was very successful. This may be happening here.

Clearly, retailers are being pressured someway to fill their fridges with EST.

[AyG]

Clearly, retailers are being pressured someway to fill their fridges with EST.

I wonder whether looking to the owners of Sermsuk casts any light on the situation. Sermsuk is 65% owned by Thai Beverage Logistic. A further 33% is owned by SS NTL - a company widely believed to be closely associated with the Chairman of Thai Beverage.

[Briggsy]

Seen off Carlsberg. Now turning over Pepsi. Who's next?

[NewlyMintedThai]

Clearly, retailers are being pressured someway to fill their fridges with EST.

I wonder whether looking to the owners of Sermsuk casts any light on the situation. Sermsuk is 65% owned by Thai Beverage Logistic. A further 33% is owned by SS NTL - a company widely believed to be closely associated with the Chairman of Thai Beverage.

It's no secret that Charoen controls Serm Suk. He didn't becomea billionaire by being a dumb-ass...

[prepress]

Taste test

I bought last week a bottle of the new Pepsi at Tesco, near National Stadium.

At home I made a drink test to compare with EST. I poured 1 glass EST and one glass Pepsi. Both same temperature. First I sipped EST. It tasted good. Then I sipped Pepsi. It tasted exactly the same as EST. But when I swallowed down the Pepsi I feel more fizz in my throat.

Just my experience. However locals say, it is the same.

[barefoot1988]

really, EST doesnt taste near to Pepsi. the taste is very sweet, less fizzy and the cola flavor is obviously lacking. the big cola is very similar to est, the cola flavor is lacking.

[jbrain]

Clearly, retailers are being pressured someway to fill their fridges with EST.

I wonder whether looking to the owners of Sermsuk casts any light on the situation. Sermsuk is 65% owned by Thai Beverage Logistic. A further 33% is owned by SS NTL - a company widely believed to be closely associated with the Chairman of Thai Beverage.

It's no secret that Charoen controls Serm Suk. He didn't becomea billionaire by being a dumb-ass...

I think Carlsberg has different thoughts about how Charoen became a billionaire

[NewlyMintedThai]

He was a billionaire long before the Carlsberg debacle.

[jbrain]

He was a billionaire long before the Carlsberg debacle.

But the Carlsberg debacle and now the pepsi issue say everything about his low ethics

[NewlyMintedThai]

He was a billionaire long before the Carlsberg debacle.

But the Carlsberg debacle and now the pepsi issue say everything about his low ethics

In what way?

I think it says more about his business acumen.

[jbrain]

He was a billionaire long before the Carlsberg debacle.

But the Carlsberg debacle and now the pepsi issue say everything about his low ethics

In what way?

I think it says more about his business acumen.

The Danish brewer terminated in 2003 its partnership with Chang, saying

the Thai company did not chip in the agreed assets to the joint venture

and citing cultural differences.

http://newsgroups.de...8/msg00532.html

The dispute which drove Carlsberg out of the Thai market began last year, when Carlsberg terminated its licence agreement with Carlsberg Brewery (Thailand) due to its "failure... to perform its contractual obligations, not least the payment of royalties which were due".

http://www.brandrepublic.com/news/447501/

Edited December 21, 2012 by jbrain