BEVERAGES / SOFT DRINKS

Pepsi bottler says it's overtaken Coke

PITSINEE JITPLEECHEEP

Serm Suk Plc, the local bottler of Pepsi products, says its share of the overall soft-drink market surpassed that of rival Coca-Cola for all of last year, the first time in the company's 54-year history.

Marketing director Dhitivute Bulsook said Serm Suk had in fact topped Coca-Cola (Thailand) for six months in 2005 but had never before managed the feat for a full year.

In addition to its flagship Pepsi-Cola, Serm Suk also bottles Mirinda and 7 Up. Coca-Cola products include Coke, Fanta and Sprite.

Serm Suk's corporate share was about 46.5% from 2001 to 2004 before rising to 48.4% in 2005. In 2006, the figure climbed by 1.4 points to 49.8%, compared with Coca-Cola at 47.1%.

Pepsi products accounted for the majority of the growth, with the brand now holding a 64% share in the local cola segment, up from 63% in 2005.

Mr Dhitivute said there was still a market opportunity for carbonated drinks, although people were more concerned about health and had shifted to alternatives such as juice, drinking water and green tea.

Demand in Thailand's 30-billion-baht soft-drink market increased by 3-4% last year, while demand for the Pepsi brand grew by 5% in the same period.

Charlie Jitcharoongphorn, marketing director of Pepsi-Cola (Thai) Trading Co, the trademark owner, said the company yesterday launched a new global campaign called ''Life is full of Endless Possibilities''.

''With this campaign, we will reach out to young consumers in a way never been done before,'' Mr Dhitivute said.

Mr Charlie said company research had indicated that most of its teenage consumers used a full range of media channels to express their individuality.

Therefore, the company ill communicate with teenagers through 3D marketing activities that included three new TV commercials and new global packaging designs focussed on self-expression through the world of digital media.

The company will spend 20-30 million baht for its new campaign via traditional and new media channels.

Customer behaviour had changed dramatically over the years, Mr Charlie said, adding that young people now spent more time surfing the Internet than watching TV at home.

In response to the change, the company has developed the website www.pepsithai.com to encourage its customers to take part in shaping the Pepsi brand.

Pepsi Square will be opened at Center Point Siam Square and other teen hangouts with ring-tones and wallpaper downloading services via Bluetooth technology.

Mr Dhitivute expected the soft-drink business in the first quarter to grow by up to 4%, similar to last year's rate, amid economic uncertainty and tough market competition.

Shares of Serm Suk closed yesterday on the Stock Exchange of Thailand at 19.30 baht, up 20 satang, in trade worth 141,562 baht.

Bangkok Post
Friday February 02, 2007