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Published on March 19, 2008

Tan Passakornatee, Oishi's managing director, said yesterday the venture would be launched under the Coffio brand name.

He said the coffee market still had growth potential, with ready-to-drink products accounting for only 20 per cent of sales. Instant coffee leads the market.

However, 80 per cent of coffee drinkers say they prefer fresh coffee rather than instant varieties.

"I believe that ready-to-drink fresh coffee will grow in popularity over the next few years. Fresh coffee is the rising star for Oishi and is expected to boost the company's revenue. Oishi's move will be followed by others, and the market will grow," he said. Oishi is collaborating with an unnamed Japanese partner to manufacture the new product.

Its partner is investing Bt1 billion to build a plant with annual manufacturing capacity of 10 million bottles. Oishi will be responsible for marketing and will also invest Bt500 million to build a second plant with a capacity of 5 million bottles a year.

"If the two plants run at full capacity, Oishi could see annual sales of Bt5.5 billion," Tan said.

The company plans to set up between 5,000 to 10,000 Coffio outlets within three months and increase the number to 300,000 nationwide in three years. Oishi will set up outlets even in small communities.

It has allocated Bt100 million to open new outlets and another Bt100 million for marketing.

Oishi expects to gain a 10-per-cent share of the Bt8.5-billion ready-to-drink coffee market this year and estimates annual sales growth of 10 per cent, Tan added.

Nalin Viboonchart

The Nation