PepsiCo is set to go it alone in Thailand from next week

PepsiCo is set to go it alone in Thailand from next week

PepsiCo has lined up a US$600m investment programme in Thailand as it prepares to go it alone in the country.

The company, which had previously teamed with local partner Serm Suk, said yesterday (25 October) that it will spend THB18.4bn (US$597m) on upping its presence in the country between now and the end of 2015. Included in the programme is a THB5.2bn production facility in Rayong province.

The move comes as PepsiCo prepares to bid farewell to Serm Suk, its sole distributor in Thailand for the last 60 years. A protracted impasse between the two came to an end in September last year, when PepsiCo said it would offload its 41.5% stake in Serm Suk ahead of the latter’s acquisition by Thai Beverage. The distribution tie-up comes to an end next month, after the two sides failed to agree renewal details 18 months ago.

Yesterday’s announcement will see PepsiCo focus on three key areas: manufacturing and distribution, marketing of its Pepsi-Cola brand, and employment and training.

The Rayong facility has been built in Amata City Industrial Estate in the province and, at 153,600 square-metres, is one of PesiCo’s largest beverage plants globally.

It includes production lines for CSDs in aluminium cans and PET bottles, and will begin delivering Pepsi-Cola in PET bottles starting next week. Full production of Pepsi-Cola in PET and cans will be underway by June.

The Thai programme forms part of PepsiCo’s plan to “drive growth in emerging and developing markets around the world”, the company said.

Earlier this week, the company looked to up its footprint in Vietnam by teaming up with Suntory in the country, while it also confirmed the opening of a production facility in China through its local tie-up with Tingyi Holding Corp.

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