Otsuka puts Thai unit behind drinks sales push 

 
 The subsidiary yesterday marked the official start of operations under a plan that will see Otsuka market Pocari Sweat directly to consumers in Thailand.
Takayuki Kushida, managing director of Otsuka Nutraceutical (Thailand), the Thai subsidiary, said that the company would consider setting up a manufacturing facility for Pocari Sweat in Thailand once sales of the product reached 50 million bottles a year. This volume is expected to be achieved within 10 years, and the factory would responsible for the production of Pocari Sweat for the domestic market as well as for export to potential markets in Asean, Takayuki said.
“My personal dream is to make Thailand a manufacturing centre supplying the Pocari Sweat electrolyte beverage for the domestic market and also for export to other markets in Asean,” he said.
“After Japan and South Korea, Thailand is the third-most trusted country by consumers in neighbouring countries, such as Myanmar and Cambodia, for the production of high-quality products.”
Otsuka Pharmaceutical (Japan) owns 90 per cent of the Thai subsidiary, which has Bt300 million in registered capital. Thai Otsuka Pharmaceutical Co Ltd holds a 5 per cent stake, and Saha Pattana Inter Holding Plc and Saha Pathanapibul Plc each owns 2.5 per cent each.
Thailand is now the third country in Asean where the company operates its beverage business through owned subsidiaries; Indonesia and Vietnam are the other two. The company also has a factory for Pocari Sweat in Indonesia that has been awarded halal food certification. The output is exported mainly to Arab markets. Pocari Sweat is available through local distributors in Cambodia and Myanmar.
Pocari Sweat has been in the Thai market for 19 years and is distributed locally by Kobe-Ya Shokuhin Kogyo Co Ltd, a Japanese firm that has set up in Thailand. Pocari Sweat is ranked as the second-largest sport drink brand in Japan.
“Thai consumers have become increasingly health conscious, and that’s why we have seen a greater potential to market Pocari Sweat by our owned subsidiary, so that we will be able to create marketing activities proactively and directly to consumers,” said Kushida, adding that the company expected to boost the sales of Pocari Sweat in Thailand by about 30 per cent this year.
He said that Pocari Sweat products would be distributed domestically by two main distributors – Saha Pathanapibul and Kobe-Ya Shokuhin Kogyo Co Ltd. Saha Pathanapibul would be in charge of distributing Pocari Sweat through local supermarkets and other retail outlets, while Kobe-ya would mainly handle the Japanese supermarket chains.
 “Otsuka Group is dedicated to the development of new innovative products by making full use of pharmaceutical and medical equipment innovation to enhance the quality of life of people and contribute to better health for people around the world,” Kushida said. “The establishment of Otsuka (Thailand) is aimed at expanding the products of Neutraceutical Group from Japan to the market in Thailand, hoping to improve Thai people’s health through our mission to emerge as one of the leading producers of the best healthy drink in Thailand. Pocari Sweat is, thus, the very first such product introduced to the Thai market,” he said.
Kushida said the electrolyte supplement drink market in Thailand is valued at Bt2.17 billion. In 2017, Pocari Sweat has so far posted sales growth of 30 per cent from the previous year.
He said the company would spend more than Bt100 million on marketing activities.