Newcomer iBeverage keen on wider sales

The company plans to expand its manufacturing presence by establishing a plant in Myanmar to cash in on the opening up of that country’s market and the full implementation of the Asean Economic Community in 2015.

Chief financial officer Paisith Susomrith yesterday said iBeverage had started talks with potential distributors in many markets in Asean, including Myanmar, Indonesia and Cambodia.

"We plan to set up a beverage plant in Myanmar in partnership with a local investor. The move is aimed at cashing in on the opening up of Myanmar itself, as well as the good business connections we have in the country," he said.

Myanmar should be the company’s manufacturing base for making inroads into the wider Asean energy and functional-drink markets, he added.

The company was formed in February by independent Thai investors who see strong potential in the domestic energy- and functional-drink markets.

Yesterday iBeverage launched its first energy drink, Zorus, to target the high-end segment of the market.

Armed with movie marketing, the brand aims to penetrate the market among younger-generation drinkers. The product will be distributed through the more than 7,000 outlets of 7-Eleven convenience stores nationwide, with "Mission to Innovation" being used as the brand concept.

The company plans to launch four more functional-drink products into the local market this year, each targeting a different consumer segment: males, females, kids and sports lovers.

"We expect to achieve about Bt400 million in sales by the end of the year, rising to Bt500 million next year and Bt750 million in 2014," Paisith said.

The company’s beverages are produced by a local manufacturer – Huy Chun (Thailand) – under an original-equipment manufacturing contract.

It intends forming a strategic partnership by taking a stake in the manufacturer and investing in a new production line at its plant in Nakhon Pathom, said the CFO.

Chanin Thiencharoen, chief executive officer of iBeverage, said that with the Mission to Innovation brand concept, the company is determined to develop and deliver only innovative drinks, and create a new marketing strategy to reach out to the target of young, modern consumers.

"Our goal is to create a phenomenon in the local drinks industry and to raise the bar of the industry. Our immediate plan is to become the market leader within five years through our innovations to create new drinking categories, such as vitamin drinks," he said.

Zorus, which is available in a 90-millilitre glass bottle with dinosaur graphics, is on sale at Bt15. The drink is designed for the younger generation, that is, college students and young office workers who seek a healthy drink, have their own style and are open to new things in life, he said.

"The energy-drink industry in Thailand has never been developed for more than 30 years, compared with the progressive market overseas. Most energy drinks sold in the market abroad now contain natural substances, be it ginseng or guarana, which contains natural caffeine. This is considered an innovation for the Thai market. It’s also our mission to deliver only innovations and healthy drinks for Thai consumers," said the CEO.

The overall value of the energy-drink industry in Thailand is worth more than Bt18 billion, and this is expected to increase by about 6 per cent this year.

The market is divided into three segments: Bt15 products for the high end, Bt12 products for the medium segment and Bt10 drinks for the lower end.

The market in general has been stable during the past five years. Only the high-end segment, which is relatively new, has grown steadily.