Sep 17, 2013

Thai bev's Oishi moves and update on ready-to-drink tea market


Oishi expands bottling capacity in Pathum Thani with Shibuya Kogyo, a leading Japanese bottling system manufacturer, for the purchase and installation of an aseptic cold filling system for PET bottles. The US FDA-approved system enables the use of thinner containers which will reduce material cost and lower environmental impact. The system can also reduce the need for preservatives while prolonging shelf life and flavour retention. The ambient filling conditions also provide flexibility in bottle design.

PET bottles are safe, lightweight, and recyclable. Note the similarities in the operations of Serm Suk, where recycling is also a theme in their glass bottling form for est. Thai Bev is actively involved in sustainability and the environment.

Chief Executive and President of Thai Bev, Khun Thapana, is also the Chairman of Oishi Trading believes the move is required to serve domestic and exports markets to capitalise on opportunities from the AEC. The expansion is another strategic move to maintain Oishi's market dominance in Thailand while facilitating growth into ASEAN. Thai Bev is continuing to expand in the robust non-alcoholic drinks business to optimise its distribution network.

The investment will cost 1.3 billion baht (about S$53 million), and will increase production capacity at the plant in Nava Nakorn by 25%, a capacity of 75 million bottles a month from 60 million today.

Approval has been granted from the Board of Investment for this system and commercial run begins in December 2014.

In other news, Thai consumers are spoilt for choice as Suntory, a leading Japanese beverage company, has entered Thailand's ready-to-drink tea market with its Tea Plus oolong tea. Suntory will pair up with Tipco and plans to spend 250 million baht on brand marketing. (No lack of money thrown at marketing and advertising this year and the next, as I have speculated here.)


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