• 
• 

Published on December 26, 2007

The manufacturer and distributor of D7 canned coffee, Thai Atlas Global Food, will spend Bt500 mil-lion over the next five years on a marketing campaign that will stir up Thailand's

Bt9-billion canned coffee market.

The company plans to take a convincing third position in the market by the end of 2012.

Marketing director Pichaya Songsaksakul said the company planned to focus on energy- and sports-drink products. It would launch at least two new beverage products next year, possibly extending the D7 product line as well as creating a new brand.

Since D7 canned coffee was launched in January, the company has spent Bt80 million to promote awareness among local consumers. Another Bt80 million will be spent on marketing next year, he said.

"We expect to raise our market share from 1-2 per cent now to 3-5 per cent next year," Pichaya said, adding that the company would like to achieve between Bt240 million and Bt450 million in sales in 2008.

Four television commercials have been launched in the past two months.

"We've positioned D7 as a canned-coffee product ac-companying truck drivers

and general travellers. About 70 per cent of our target customers now know the D7 brand," he said. "Our ambition is for D7 canned coffee to take a clear third position in the market within five years and have a market share of more than 15 per cent."

Ajinomoto's Birdy brand currently controls 60 per cent of the local canned-coffee market, followed by Nescafe with 25-30 per cent.

Another 10 per cent is shared by about 10 small players, including Back-up, Krating Daeng, Super and Black Cat.

There is no clear holder of third place.

Thai Atlas Global Food is wholly owned by Sombat Attasakulchai, who is also a major shareholder in Thai Advance Food, manufacturer and distributor of Betagen drinking yoghurt.

Pichaya said Thailand's canned-coffee market had enjoyed growth of more than 5 per cent per annum. It was expected to grow 7 per cent this year to Bt9 billion, rising to Bt9.5 billion next year. This contrasts with local demand for energy drinks, for which demand has slowed to less than 3 per cent this year.

Priced at Bt12 a can, D7 canned coffee is distributed through more than 30,000 retail outlets, or fewer than one in five of the country's total number of retail outlets.

Pichaya said the company planned to expand its distribution to cover more than 80 per cent of retail outlets within five years.

Kwanchai Rungfapaisarn

 The Nation