Oishi boosts flow of green tea
Oishi Group Plc plans to increase green-tea production at its newest factory on Amata Nakorn Industrial Estate in Chon Buri and will launch new beverage products in the near future.
The new Bt1.5-billion plant is able to produce 20 million bottles of green tea per month, about 67 per cent of the capacity of the company's first green-tea factory at Nawanakorn, which produces 30 million bottles per month. Oishi will operate the new factory under a 15-year lease with the property-owner, iNPET Co Ltd, which has invested Bt1.1 billion in the plant. Another Bt400 million has been allocated by Oishi for production facilities. Under the contract, Oishi will buy PET bottles from iNPET and pay Bt200,000 per month for the property. The second plant has been in operation since the end of this year's second quarter. Tan said the company planned to raise production and gain a bigger share in the local green-tea market and expand its product line to include fruit juices by the end of this year. The new products will help the company compensate for market maturity of existing green-tea products. Thailand's green-tea market grew from Bt400 million four years ago to more than Bt6 billion last year. However, the market is expected to grow by only 20 per cent this year. According to Tan, daily sales of Oishi green tea during the World Cup by rose by 300 per cent, helped by its "Kin Pai Chia Pai" ("Drink while you Cheer") campaign, jointly held with 7-Eleven convenience stores. For every Bt40 spent at 7-Eleven, customers can buy Oishi green tea for only Bt10. During the last 10 days of the World Cup, daily sales of green tea soared by 500,000 bottles per day The campaign will continue until July 24. "It is lucky that we could get our new plant operating in time to support our sales during the World Cup," Tan said. If the two plants run at maximum production capacity, the company will save 50 to 60 satang per bottle, or Bt25 million a month. The company will also purchase materials such as paper boxes in conjunction with its affiliate, Thai Beverage Plc, producer of Chang Beer. Oishi will distribute its green-tea products in the United States from August and expand its market in Hong Kong, Singapore and Malaysia by using Thai Beverage's distribution network.
Chalida Ekvitthayavechnukul The Nation
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