Coca-Cola aims to raise the ranking of its Thai unit into the top 10 contributors of revenue to the group after investing Bt14 billion in it this year. Coca-Cola (Thailand) currently ranks in the top 20 contributors.
The investment was part of the three-year plan (2012-2014) that began in June. The budget has been used to increase production capacity and to add new product lines including juice products and drinking water, said Archawat Chareonsilp, public affairs and communications director.
The investment might include a new plant; however, he declined to give any details about that.
The company has seven plants through two bottlers, six of which are operated by ThainamThip and the seventh by Haad Thip.
As part of the business plan, the company says it is focusing on innovative products, distribution and brand communications.
Archawat said the group saw growth potential in Thailand after a major change in the bottling industry this year.
The arrival of new brands obliges the existing bottlers to invest a lot for marketing activities, causing the carbonated-drinks market this year to grow by 13 per cent - double digits for the first time in several years, he added.
He said Coca-Cola Group had set an ambitious target of double-digit growth through 2020, which meant Coca-Cola (Thailand) must grow at the same pace.
"The investment budget of Bt14 billion is the largest in six years for Coca-Cola (Thailand) because we want to grow by 10 per cent per year. We believe the picture of the carbonated-drinks [market] in Thailand within three years will not change much. Carbonated drinks are still the major focus of all players, including us," he said.
Coca-Cola (Thailand) expects the market next year to mark a historic moment with the arrival of the rival cola brand est.
Coca-Cola (Thailand) projects the market in 2013 to expand by 7-8 per cent from its total value this year of Bt43 billion.
Archawat said the company's latest investment in Laos, which is a joint venture between ThainamThip and Laos-based PT Construction, would mean Coca-Cola covers all 10 countries in Asean.
The operation in Laos will begin in 2014, he said.
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Article source: http://www.thethailandlinks.com/2012/12/15/cokes-thai-unit-aims-for-groups-top-10/
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