Mr. Jagrut Kotecha, General Manager for Beverages, said, "PepsiCo invested in its first beverage plant in Thailand, located in Amata City Industrial Estate of Rayong Province, in 2012 after we decided to change our business model to become company-owned bottling operation, unleashing business opportunities through own manufacturing facilities and distribution networks. Since then, our beverage business has grown steadily in both sale and market share. With our confidence in Thailand's economic outlook, especially in THB 50 billion-valued CSD category which grew last year at 5 – 6 percent*, we have continued our investment in the country by establishing a new greenfield beverage manufacturing plant. This investment will help us lay a stronger foundation for our beverage business and potentially expand our product portfolio into other segments."
The 104-rai (166,400 square meters) facility's location in central Saraburi Province provides a strategic distribution advantage. The plant, which commenced commercial operations since mid-February this year, is equipped with advanced technology and world-class automated production capabilities. Two high-speed production lines, each with a maximum capacity of 800 bottles per minute, will produce Pepsi in PET bottles. Looking ahead, the plant will be able to house up to eight high-speed production lines for PepsiCo's carbonated soft drinks in PET bottles and aluminum cans. Additionally, the plant was designed to be "green" -- using water and energy efficiently, recycling waste and minimizing greenhouse gas emissions.
"We will continue investing to advance the company's sustainable business platform. Once all eight production lines are operating, our total production capacity will double. Currently, the plant helps us increase our total maximum production capacity by 30 percent, ensuring that we have enough capacity to produce Pepsi, Thailand's most-loved cola, to meet the demands of retailers and consumers this summer -- the peak season for the CSD category with 15 - 20 percent growth," added Mr. Kotecha.
The investment in this second manufacturing plant highlights PepsiCo's long-term business strategy of focusing on the non-returnable packaging soft drink category, namely PET bottles and aluminum cans. These packaging materials have gained popularity in Thailand and have been growing steadily over the past five years. In 2015, Thailand's carbonated soft drink consumption* in non-returnable packaging accounted for 78 percent of CSD sales, while returnable glass bottles accounted for only 22 per cent. In the cola segment, Pepsi achieved leadership in non-returnable packaging nationwide, with more than 44 percent market share in the past 12 months.
"In addition to CSDs under Pepsi, Mountain Dew, Mirinda and 7-Up brands, the new plant will enable our expansion in non-carbonated drinks such as Lipton ready-to-drink tea, Gatorade, and also new products and innovations to satisfy future consumer needs. We are confident that with the perfect combination of these two advanced production bases – Rayong and Saraburi plant -- as well as the taste and quality of our products and our strong brands, we will continue to build on our success and deliver growth in a sustainable manner," concluded Mr. Kotecha.