Pepsi Suddenly Scarce In Thailand After Bottler Breakup

[webfact]

Pepsi suddenly scarce in Thailand after bottler breakup
By Amy Sawitta Lefevre

BANGKOK Feb 22 (Reuters) - The day after PepsiCo Inc's bottling deal in Thailand expired, its partner of 59 years launched its own soft drink that has knocked Pepsi off store shelves.

Serm Suk Pcl, backed by the billionaire owner of Thai Beverage Pcl, Charoen Sirivadhanabhakdi, said its new soda called "est" garnered 19 percent of Thailand's $1.8 billion cola market in just two months following its Nov. 2 launch.

Pepsi's breakup with its bottler meant it also lost access to Serm Suk's vast distribution network, which delivers drinks to about 200,000 stores, restaurants and vending machines serving Thailand's market of 67 million people.

The two companies had a non-compete clause that expired when their contract ended on Nov. 1. Pepsi has similar non-compete clauses with bottlers in other markets such as China, but the decision backfired in Thailand.

Full story: http://www.reuters.com/article/2013/02/22/sodawars-thailand-idUSL4N0BE27K20130222

-- REUTERS 2013-02-22

[ExpatOilWorker]

Isn't this old news????

[kalbo123]

What is strange is that the Thai people don't mind, they drink it as it's been there forever.

I think that in a western country people would not except "fake" pepsi or coke.

Great marketing!

[Nisa]

Isn't this old news????

Maybe for some but was interesting because the other night I was watching a semi old movie (The Invention of Lying) with my wife and after a scene where there was an ad which said "Pepsi, for when they don't have Coke" and my wife made the comment that she never sees Pepsi anymore and although not being much of a soda drinker, it dawned on me too I couldn't remember the last time seeing a Pepsi.

Anyway, I guess this explains it.

[54321]

yes, very old news.

Isn't this old news????

[Semper]

Oh my god, no more Pepsi in Tailand, I'm packing my bag right now.

[Eddy B]

Est tastes like crap. I will stick with Coca-cola!

[Rionoir]

What I heard from my Thai friend is that the distributor threatened companies that if they carried Pepsi instead of EST, then they wouldn't supply them with the other products they offer. It has nothing to do with popularity.

[draftvader]

I think the key to this article is that it is being published by Reuters. This is significant as they produce a lot of the world's business news. They are running with this then expect some of the other financial news agencies to consider having a look.

[Fookhaht]

What I heard from my Thai friend is that the distributor threatened companies that if they carried Pepsi instead of EST, then they wouldn't supply them with the other products they offer. It has nothing to do with popularity.

Typical strong-arm business tactics in LOS.

[BrianCR]

I, and other scientists here in Thailand have over the past few weeks been developing a drink to replace EST. Our biggest problem was the strong-arm distribution system practiced here and finally how to overcome it. Using the latest scientific methods available in the land of smiles we finally solved the drink market and distribution system. PISS is the answer, it tastes better than EST and you can both make and distribute it yourselves! Thank you and Good Night, another Thai problem solved!

[WilliamTaylor]

Yes, this EST stuff has started appearing everywhere.
Tastes like crap, costs the same as the established brands.
It would not surprise me if the company making the stuff has some very influential owners/shareholders.

[Thai at Heart]

Surely not thaibev, oh, he of nicking the recipe for chang and running carlsberg off.....

[bigbamboo]

Coca Cola must be pissing themselves laughing.....probably into Est bottles.

[Phuket Stan]

Surely not thaibev, oh, he of nicking the recipe for chang and running carlsberg off.....

You count your fingers after he shakes your hand

Read a very interesting article about him 4-5 years ago....he sure knows his way to the money

[gosompoi]

Yes, EST is everywhere except my lips, it is just terrible.

[bigbamboo]

What is strange is that the Thai people don't mind, they drink it as it's been there forever.

I think that in a western country people would not except "fake" pepsi or coke.

Great marketing!

Westerners have been drinking MacDonald's 'cola' for years.

[diddums]

Yes, this EST stuff has started appearing everywhere.

Tastes like crap, costs the same as the established brands.

It would not surprise me if the company making the stuff has some very influential owners/shareholders.

duh

[Pimay1]

I used to drink cokes all the time then I found out it had seven teaspoons of sugar I stopped drinking them.

[lemoncake]

Yes, this EST stuff has started appearing everywhere.

Tastes like crap, costs the same as the established brands.

It would not surprise me if the company making the stuff has some very influential owners/shareholders.

no one of importance, just as OP clearly stated

Serm Suk Pcl, backed by the billionaire owner of Thai Beverage Pcl, Charoen Sirivadhanabhakdi,

[jbrain]

Serm Suk Pcl, backed by the billionaire owner of Thai Beverage Pcl, Charoen Sirivadhanabhakdi, said its new soda called "est" garnered 19 percent of Thailand's $1.8 billion cola market in just two months following its Nov. 2 launch

But I guess they have lost at least half of that market share already in the past month.

I am surprised that nobody has noticed yet how scarse E$T products have become in the past month.

Big C extra here in Pattaya has completely stopped selling EST products.A few weeks ago they sold their entire stock at 50% discount.Liter bottles cola and softdrink went for 10 Baht.

Since then there is not a single bottle or can of any EST flavor to be found in the shop.

I noticed Tesco has also reduced the space allocated to EST products with at least 70%.

Edited February 22, 2013 by jbrain

[Felt 35]

Gues that transelate to knocked previous Pepsi drinkers down so the Government billionaires can get free way to sell their own expired super trash to unknowingly followers.

[lemoncake]

I have been able to buy pepsi and pepsi max from most 7-11, friendship, tops and macro.

Perhaps things are not as bad as OP is making it out to be.

But I guess very good lesson to all foreign entity's here what to expect.

Really unsure how Thailand can promote itself as a hub and try to get big company's here and then at the same time run this fully legal scam

[jamhar]

I personally dont mind EST,

but there is no diet EST

so i'll stick to pepsi max, or coke zero.

[angiud]

I personally dont mind EST, but there is no diet EST so i'll stick to pepsi max, or coke zero.

+1

[Guest]

Est tastes like crap. I will stick with Coca-cola!

Its all crap and risky to your health.

[Morden]

Pepsi disappeared about a moth ago. Chillers and trucks were quickly relabelled with the EST brand.

I agree that it's not a good cola. I've tried two bottles on different occasions and didn't finish either. The early success was probably due to wholesalers and retailers being taken by surprise. Coke is taking over where customers ask for it but I think the low price of EST is attracting some.

Now, EST is standing unsold in establishments where customers are willing to switch to Coke.

I have heard that Pepsi is slowing reappearing in larger bottles than previously.

[Locationthailand]

Shades of how Carlesberg was ousted.

[Morden]

Shades of how Carlesberg was ousted.

And the same trick that was played on Pizza Hut by the present owner of Pizza Company, I understand. Company name boards changed overnight.

[PoodMaiDai]

Swap out one poison for another. Whatever. Let Darwin do his work, drink up everyone.