The two companies yesterday announced their first jointly marketed product, Kirin Namacha, with the aim of it becoming the top green-tea product in Thailand within the next three years.

The move is sure to upset Oishi Plc, which currently dominates the Bt4.5-billion green-tea market given Osotspa's experience in production and extensive local distribution network and Kirin's international brand-name exposure.

Kirin Namacha is to be launched on the market next month with pop superstar Thongchai McIntyre as presenter.

"It is a major joint investment, and we are confident that it will be successful. This should lead to the joint marketing of other beverages at a later date," said Somchai Chaisuparakul, Osotspa managing director.

Yoshikazu Arai, president of Japan-based Kirin, said that Kirin aimed to make Thailand a stepping-stone to Asean markets through the investment.

Established in 1963, Kirin is a leader in the Japanese beverage market, with total sales 379.3 billion yen (Bt129.4 billion) last year.

Osotspa, meanwhile, was established in 1981 and reported total sales of Bt15 billion last year.

It forecasts that in 2007 about three million 12-bottle cases, of Kirin Namacha will be sold. A survey showed that in 2005 20 million cases of green tea were sold with a total value of Bt4.5 billion.

Oishi now controls 60 per cent of the market.

Akira Sato, Kirin's marketing director and general manager for production, said there was sufficient growth potential in the green-tea market for Kirin Namacha to exploit.

"Our green-tea products are tremendously popular in Japan, with total sales of 35 million cases in 2005. This should give Thai consumers confidence in the quality of our products," Sato said.

Watcharapong Thongrung

The Nation