PepsiCo strategy in Kingdom will pay off : Surakiart
PepsiCo is on the right track in committing to long-term investment in Thailand and using it as a springboard into Asean, especially the Mekong countries, said former foreign minister Surakiart Sathirathai, who was recently appointed chairman of Pepsi-Col
PepsiCo on Thursday announced that it would invest Bt18.4 billion in Thailand over the next three years. The money will be allocated in many areas, including manufacturing, marketing and consumer engagement, staff development, sales and distribution.
The company in February also bought a bottling plant in Amata City Industrial Estate in Rayong from San Miguel, which will be its major bottling and canning facility.
Surakiart will be in charge of formulating a strategy to cash in on the single regional market under the Asean Economic Community. He said PepsiCo had been doing business in Thailand for almost 60 years and was starting a new life by splitting with its local bottler and distributor and handling the whole business on its own.
PepsiCo “has indicated its strong intention to stay in Thailand for the long term. In my point of view, it as an international company has shown good promise for our country. Pepsi itself has the Thai heart, as it has stayed in Thailand for a very long time and employed many Thai people.
“I myself will help the company add value and [will offer] good advice regarding policy to penetrate the Asean community fully in 2015,” he said.
Surakiart said he had talked to the company’s chief executive officer based at the Dubai office who is in charge of the Pacific and African regions. According to that discussion, PepsiCo has seriously committed itself to covering the whole Asian market as best as it could. Its investments in this region would be via many platforms, whether franchising or investing and doing business on its own.
“I have accepted the invitation of PepsiCo to be the chairman of its Thai subsidiary as I want to reinforce its confidence in giving importance to Thailand. I think it is quite a challenge for PepsiCo as after 60 years of doing business via its local bottler and distributor, the beverage giant will now run the business on its own.
“PepsiCo wants Thai experts to give them business advice, which is good, as it shows respect for Thai society,” Surakiart said.
