Coke Goes For Top Spot As Pepsi Splits With Serm Suk: Thailand

[webfact]

PEPSI-COLA DIVORCE

Coke goes for top spot as Pepsi splits with Serm Suk

KWANCHAI RUNGFAPAISARN

THE NATION

BANGKOK: -- Coca-Cola plans to take advantage of the impending divorce between Pepsi-Cola and its local bottler Serm Suk by spending Bt200 million on marketing this quarter to leapfrog Pepsi and become the undisputed leader of the Bt38.5-billion carbonated-drink market.

Serm Suk's bottling and distribution contract with Pepsi will lapse at the beginning of next month

Pepsi-Cola recently appointed former foreign minister Surakiart Sathirathai as chairman of Pepsi-Cola (Thai) Trading in charge of formulating a strategy to cash in on the single regional market that is to be created with the implementation of the Asean Economic Community in 2015.

Jagrut Kotecha, general manager for beverages at Pepsi-Cola (Thai) Trading, will today outline Pepsi's business direction in Thailand, which is considered a strategic market as it is one of the few where it outsells Coke.

Colas represent about 75 per cent of the carbonated-drink |market here, followed by flavour-ed drinks with 20 per cent and lemon-lime with 5 per cent. The cola segment is also the most |competitive, with international brands such as Pepsi-Cola, Coca-Cola and Big Cola fighting it out for a share.

PepsiCo Inc recently said it would boost its snack and beverage business with plans for two more plants, taking its total in-vestment here since 2000 to US$2.9 billion (Bt90 billion). One bottling plant at the Amata City Industrial Estate in Rayong, bought from San Miguel for Bt2 billion in February, would support Pepsi-Cola drinks.

Serm Suk, a beverage firm owned by Thai Beverage (ThaiBev), is already inching towards it post-Pepsi operation by airing the first teaser ads for its "est" carbonated drink, which will hit store shelves on November 2.

As part of the Bt200-million marketing effort, the Coca-Cola system today will conduct the largest sampling campaign ever in Thailand and go on a nationwide tour to meet consumers and distribute one million bottles of Coke in a single day.

OVERALL GROWTH

Thiti Tuangsithtanon, marketing manager of Coke, said the soda drink market was projected to increase by 11 per cent year on year in the first nine months of this year, while Coca-Cola would be able to grow its sales by 20 per cent.

"We expect the overall carbonated drink market will be on par with 2010, with 12- to 15-per-cent growth. The market was flat last year due to the massive flooding, which hit from October to the end of the year. We expect the market to grow again this year driven by positive factors, including the coming of new branded players and more investment allocated in the industry by both existing and new players," he said.

Thiti declined to reveal Coca-Cola's share of the cola drink market, saying only that the parent company had a strong ambition to beat Pepsi-Cola.

"We were able to gain 5 percentage points to 54 per cent in corporate share this year, which is the highest ever in 10 years. The increase of 5 points on an annual basis is also among the highest we have seen in this competitive carbonated-drink segment," he said.

"Having a strong alliance with local partners - Thai Nam Thip and Haad Thip - is considered as one of the factors driving our success in accessing individual consumers. They have provided us with local insight and know-how regarding consumers and the market situation," he said.

The company has also made progress in brand preference. Based on its survey, about 35 per cent of the population aged 12-49 choose Coca-Cola as their preferred brand, he added.

-- The Nation 2012-10-25

[asiawatcher]

A behemoth without morals or ethics, Coke (company and drinks) are linked to massive pollution, absolute proof of obesity and diabetes. It has even been linked to murder. http://articles.mercola.com/sites/articles/archive/2010/11/04/the-dirty-truth-behind-coca-cola.aspx

Say NO to Coke.

Edited October 25, 2012 by asiawatcher

[JeremyBowskill]

Split, I dunno why any beverage company would join with a company whos name can be mistaken for SPERM SUK as I just did. Was hoping for a much more interesting article.

[Suradit69]

Speaking as a Pepsi-Max addict, I hope they improve their distribution track record. Since last year's flood, availability has either been nonexistent or spotty. It's generally better now, but sometimes still requires visits to more than one 7-Eleven or Family Mart.

I know there are many more important issues in Thailand, but c'mon guys, get your act together.

[rfukata]

Speaking as a Pepsi-Max addict, I hope they improve their distribution track record. Since last year's flood, availability has either been nonexistent or spotty. It's generally better now, but sometimes still requires visits to more than one 7-Eleven or Family Mart.

I know there are many more important issues in Thailand, but c'mon guys, get your act together.

I think the availability stock issue may have something to do with the split of Pepsi - Sermsuk, rather than the flood situation.

knowing Pepsi, they'll regain its share and production of their brands.

[webfact]

FOOD AND DRINK

PepsiCo to invest $600mn in Thailand

Kwanchai Rungfapaisarn

The Nation

BANGKOK: -- PepsiCo on Thursday unveiled the plan to invest US$600 million or approximately Bt18.4 billion in Thailand over three years, with nearly one third set aside for the new bottling plant.

Jagrut Kotecha, general manager for beverages for Pepsi-Cola (Thai) Trading, said at the press conference that $170 million or Bt5.2 billion is allocated for the acquisition and upgrade of a fruit juice factory of San Miguel. The 60-rai factory in Amata City Industrial Estate, Rayong, will be equipped with six high-speed bottling lines, which each can fill up 600-800 PET bottles per minute.

"This will be one of the biggest facilities of PepsiCo across the world," the executive said.

The facility is believed to maintain PepsiCo’s position in Thailand, after its bottling contract with Serm Suk Plc, its partner for nearly 60 years, ends on Nov.1. Earlier, it was reported that PepsiCo would import glass bottles from its plant in Vietnam. However, according to Jagrut, the company plans to stop selling glass bottles in Thailand.

"We will terminate returnable glass bottles and replace them with multi sizes and mutli range of PET bottles and cans. This is in line with the global trend," he said.

The remaining investment will be poured to its food business.

-- The Nation 2012-10-25

[draftvader]

Coke was jostling for position today in a well thought out demographic. As we passed through the toll booths near Pracha Cheun/Ratchadapisek they were handing out free 250ml cokes to every person passing through the tolls. They were doing this at 9am and still at it at 2pm. That is a LOT of 250ml cokes in glass bottles! Not sure if they were doing this in multiple locations or not.

[easybullet3]

A behemoth without morals or ethics, Coke (company and drinks) are linked to massive pollution, absolute proof of obesity and diabetes. It has even been linked to murder. http://articles.merc...-coca-cola.aspx

Say NO to Coke.

thats true.

especially health & diabetes.

IMPORTANT: Drinking ANY kind of soda is a PRE-CURSOR to so many diseases that you get.

Stopping drinking soda is not-at-all a way to avoid future health doom.

most people that frequently drink soda also consume plenty of other junk, fried food, bad fats, chocolates, cakes etc.

but its a free world,,, if a person wants to destroy their future health, its up to them.

on a separate note: I thought that Coke already had the worlds largest market share!! (or is it not the case inside thailand)?

Edited October 25, 2012 by easybullet3

[thaikahuna]

Coke needs to concentrate on cleaning up its act and getting the desired product in the stores. I prefer Coke Light over Coke Zero and Light is almost impossible to find since last years debacle...

[asiawatcher]

Coke needs to concentrate on cleaning up its act and getting the desired product in the stores. I prefer Coke Light over Coke Zero and Light is almost impossible to find since last years debacle...

I don't understand what people don't understand. Coke in any form (as with Pepsi) is full of Aspartame, one of the most deadly substances on the planet. You drink that crap and you risk your lives ... but then it's the same with smokers - they know the risks but choose to ignore it. Som Num Na http://www.sweetpoison.com/aspartame-side-effects.html

[ikbenhet]

A behemoth without morals or ethics, Coke (company and drinks) are linked to massive pollution, absolute proof of obesity and diabetes. It has even been linked to murder. http://articles.merc...-coca-cola.aspx

Say NO to Coke.

thats true.

especially health & diabetes.

IMPORTANT: Drinking ANY kind of soda is a PRE-CURSOR to so many diseases that you get.

Stopping drinking soda is not-at-all a way to avoid future health doom.

most people that frequently drink soda also consume plenty of other junk, fried food, bad fats, chocolates, cakes etc.

but its a free world,,, if a person wants to destroy their future health, its up to them.

It's called having a life.

[jbrain]

Coke needs to concentrate on cleaning up its act and getting the desired product in the stores. I prefer Coke Light over Coke Zero and Light is almost impossible to find since last years debacle...

I don't understand what people don't understand. Coke in any form (as with Pepsi) is full of Aspartame, one of the most deadly substances on the planet. You drink that crap and you risk your lives ... but then it's the same with smokers - they know the risks but choose to ignore it. Som Num Na http://www.sweetpois...-effects.html

I think there isn't much to understand

http://en.wikipedia.org/wiki/Aspartame_controversy

Unless you gonna say that Wikipedia and so many other sources are also scams.

[IsaanUSA]

So did anyone actually read the story?

Pretty interesting how Pepsi is gearing up for the future ASEAN trade bloc while Coca-cola's strategy is just to try and win over customers. I suppose if Coca-cola feels they have the production capacity, then they don't need to worry about the future? It sounds like Pepsi will be spending a lot on transportation of it's product from Rayong to other countries in ASEAN.

[belg]

nothing better than to appoint a former has been hiso to put your company in the top position because the great leader will know what to do to agieve greatness

but in another point: why are people still drinking this trashy sugar bombs that are clearly unhealthy for your guts, your teeth and your weight ???

if i feel clogged up, i might drink one and get a splashy diariah ... ahhhhhhhhhhhhhh, fzzzzzzzzzzzzzzzzzzzzz

[Tanaka]

nothing better than to appoint a former has been hiso to put your company in the top position because the great leader will know what to do to agieve greatness

but in another point: why are people still drinking this trashy sugar bombs that are clearly unhealthy for your guts, your teeth and your weight ???

if i feel clogged up, i might drink one and get a splashy diariah ... ahhhhhhhhhhhhhh, fzzzzzzzzzzzzzzzzzzzzz

It is entirely up to you what you drink. But do not clamp down on people wanting to drink something different from your habits. I drink a lot of soda every day because of a liquid malfunction in my body and I have done that for almost 50 years without any problems anywhere in my body and I am not overweight. I would prefer to see some other sodas than the multimillion brands available here but there are none.

[asiawatcher]

A behemoth without morals or ethics, Coke (company and drinks) are linked to massive pollution, absolute proof of obesity and diabetes. It has even been linked to murder. http://articles.merc...-coca-cola.aspx

Say NO to Coke.

thats true.

especially health & diabetes.

IMPORTANT: Drinking ANY kind of soda is a PRE-CURSOR to so many diseases that you get.

Stopping drinking soda is not-at-all a way to avoid future health doom.

most people that frequently drink soda also consume plenty of other junk, fried food, bad fats, chocolates, cakes etc.

but its a free world,,, if a person wants to destroy their future health, its up to them.

It's called having a life.

Not for long... fortunately.

[jbrain]

A behemoth without morals or ethics, Coke (company and drinks) are linked to massive pollution, absolute proof of obesity and diabetes. It has even been linked to murder. http://articles.merc...-coca-cola.aspx

Say NO to Coke.

thats true.

especially health & diabetes.

IMPORTANT: Drinking ANY kind of soda is a PRE-CURSOR to so many diseases that you get.

Stopping drinking soda is not-at-all a way to avoid future health doom.

most people that frequently drink soda also consume plenty of other junk, fried food, bad fats, chocolates, cakes etc.

but its a free world,,, if a person wants to destroy their future health, its up to them.

It's called having a life.

Not for long... fortunately.

If you believe that, and it's obvious that you do, then I have a few more for you.

http://www.glamour.com/health-fitness/2008/03/health-hoaxes

http://urbanlegends.miningco.com/culture/beliefs/urbanlegends/library/blnotes4.htm#sponges

http://snopes.com/toxins/bananas.htm

http://www.snopes2.com/toxins/canola.htm

http://www.snopes.com/toxins/yellow.htm

[hellodolly]

It doesn't really matter what they do as long as I can get my Pepsi Max. Hopefully in liter and a half bottles. Plastic one's please.

As for Aspartame.

It has been the most researched commodity approved by the US food and drug administration. They give it an all clear. as do 90 other countries. I will admit some of those countries might not have the scientific know how the US does.

The one link http://www.sweetpois...-effects.html listed everything that can happen to you with growing older and not one iota of proof that it was because people used Aspartame.

There is not one item in the world that we put into are stomach that can not have some diverse effects on some people no matter how much scientific proof there is that it is harmless for human consumption.

All people handle all things differently. I have a friend who can not drink more than a liter and a half of water a day because it will wash out needed sodium in his body.

So should we tell the rest of the world not to drink over a liter and a half of water a day because it will wash out needed sodium in your system.

I think not.

[saviorsoul0872]

WHOO GO COCACOLA!!! DRINKING FROM YOU NOW MWHAHA