Sermsuk looks to big boost in exports to Asean market
SERMSUK PLC, a beverage producer and distributor under Thai Beverage Group, plans to boost exports especially in Asean markets to 20 per cent of sales by 2020 from less than 10 per cent today.
This following its success in introducing its energy drink Ranger to Malaysia and 100 Plus to Myanmar.
The company plans to launch its carbonated drink, est, in Malaysia this year, as it already distributes Oishi green tea, bottled by Oishi Plc, in Malaysia and Singapore.
The focus will be on the CLMV countries of Cambodia, Laos, Myanmar and Vietnam.
Vivek Chhabra, president of Sermsuk and Thai Drink Co and chief executive officer of the soft drink units of ThaiBev, told a press conference on Sunday that this strategy support’s ThaiBev’s “Vision 2020” to double its sales of non-alcoholic beverages from Bt20 billion last year.
The non-alcohol business covers carbonated drinks, bottled water, energy drinks, green tea, and health beverages.
The group will expand to health beverages – fruit juices and soy milk – by importing them from F&N, which has well-known brands for both categories.
The company has earmarked a capital expenditure budget of up to Bt1 billion.
Half will be used to expand its production line in Khon Kaen in two months and half to expand its production line in Surat Thani next year.
“Not only are we expanding our production capacity, but we are also continuing to plan for mergers and acquisitions.
“But we cannot say how much and when a deal will happen. That depends on the business opportunity,” he said.
The group has set its marketing budget at 15 per cent of annual sales to boost its business both in Thailand and the overseas market.
The group is extending pre-selling in Bangkok and major cities to reach high traffic areas.
It is improving sales training and inventory management as part of its plan to distribute its products to cover all market segments nationwide.
The group has seven production plants, 51 warehouses across the country and a fleet of 1,000 transport and sales trucks.
They support its strategy to become the leader in all of its product categories.
“Our strategy is to expand our share in all of our products in the
market, as some of our products have to be the market leader in three or five years from now,” he said.
The group has seven non-alcoholic brands – Oishi green tea, Ranger energy drinks, est carbonated drinks, 100 plus functional carbonated soft drink, Crystal bottled water, Jab jai herbal drink and Lipton tea.
Oishi is the leader in the green tea segment, controlling 43 per cent. Crystal is second in bottled water with 17.3 per cent and est third in carbonated drinks with 10 per cent.
Sermsuk effectively manages its cost structure in packaging, transportation and warehousing.
Sermsuk lost Bt63.5 million on revenue of Bt2.7 billion in the first quarter of this year.
“We believe that this year our revenue and net profit will better than last year.
“Although the company still recorded a net loss in the first quarter of this year, it was better than the same period of last year because we managed our costs,” he said.
Last year, Sermsuk lost Bt304.87 million on revenue of Bt11.32 billion.
