Suntory PepsiCo pivots to health-conscious consumers with alternative drinks

The company, a manufacturer and distributor of beverages under the Suntory and PepsiCo brands in Thailand, is celebrating the fifth anniversary of the signing of a joint venture agreement in 2018 between Suntory Beverage & Food Ltd and PepsiCo Inc.

Over the past five years, the company has operated under the "Must Win Battle" strategy, which has resulted in an average continuous growth rate of 5.9%, which is more than three times the overall growth rate of the non-alcoholic beverage market.

"We will forge ahead with our 'must win battle' strategy to achieve our new vision of becoming 'the most beloved beverage company in Thailand with true Gamba centricity'," said Ashish Joshi, chief executive officer of Suntory PepsiCo Beverage (Thailand) Co Ltd.

"‘Gamba is a Japanese word that means a deep understanding of what people want," he explained.

The company has pursued five key strategies under its "Must Win Battle” policy.

■ Strengthen Core by introducing new flavours in carbonated beverages, resulting in a 2.6% gain in market share, particularly for low and no-sugar goods to satisfy healthy trends.

■ Portfolio transformation of healthy innovations across beverage categories by entering new markets with ready-to-drink tea and coffee, as well as a premium energy drink, to fulfil the needs of targeted consumers.

■ Win with consumers by expanding its business partners nationwide with 2X growth, including modern trade, traditional trade, eateries, and e-commerce channels, and providing great service.

■ Long-term protection is provided by efficient operations and a focus on sustainability.

With high-efficiency production lines capable of producing an average of 600 million litres per year, the company says it has created quality and safe products that meet food requirements while also responding to consumer demand.

Continuing its commitment to protecting water resources through the implementation of effective water management and the "Mizuiku: Education Programme for Nature and Water", which has been running continuously since 2019 with over 14,500 children participating.

Upstream, midstream, and downstream packaging management was implemented. Its commitment includes using eco-friendly and 100% recyclable packaging, improving waste segregation awareness among youth and communities, and executing projects to increase the collection of used beverage packaging back into the recycling stream.

■ Develop an organisation by creating an enabling culture and attract talented people by allowing employees to fulfil their full potential. The company has won the "Kincentric Thailand Best Employer 2022 Award”.

"From 2018 to 2022, the overall Thai beverage market has been on an upward trend, especially for beverage products with low or no sugar," said Anawat Sangkhasap, chief marketing officer at Suntory PepsiCo Beverage (Thailand) Co Ltd.

He revealed that in line with the health trends among consumers, Suntory PepsiCo Thailand had averaged 19% growth in the last five years for its Pepsi No Sugar.

"We also launched “Tea+” Oolong ready-to-drink tea, and ready-to-drink “Boss Coffee", to compete in the two markets that have potential for growth," said Anawat.

“Rockstar”, an energy drink, was launched to penetrate the energy drink market, which is expected to experience high growth in the next five years.

"In terms of employees, we have implemented policies that put our employees first under our ‘commitment to growth’ together, both the company and employees." said Piengchit Sriprasart, chief people and culture, and corporate affairs officer at Suntory PepsiCo Beverage (Thailand) Co Ltd.

The company aims to continue giving back to society through several CSR activities, including the “Helping Hands” projects, which encourage volunteerism among employees to help people in need as well as support natural disaster victims.

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