SAPPE PUBLIC Co Ltd (SAPPE), a manufacturer and distributor of innovative beverage products, sees continuous growth of the functional drink market this year after manufacturers announced plans to launch new products with less sugar content for health-conscious consumers, in line with the government’s new sugar tax, amid tough competition for sales shares.
The company has announced a restructuring of its marketing management team. Launching of new products strengthens Sappe’s emphasis on innovation with the company expecting a sales growth of 10 per cent this year.
Piyajit Rakariyapong, CEO, said the company aims to satisfy healthy-conscious consumers and the growth rate of the functional drink industry in 2018 is expected to improve from previous years due to new product launchs as well as formula adjustment for sugar reduction. The government has announced the new measure of sweet tax collection with a two-year preparation period prior to the effective date on October 1, 2020. It has led to the on-going changes within the beverage industry.
Firece competition is expected to continue this year with entrepreneurs within the industry putting in efforts and investment in marketing activities in order to establish new product awareness.
Marketing spending will include sales promotion either with retail stores in order to stimulate additional product stocking or at outlets and fridges to stimulate buying decision and boost sales volume.
It is confident that the beverage market this year will definitely be more vigorous and colorful than previous years.
“The sweet tax measure is one of the most important factors of the beverage industry this year. It sets the focus in new product development of the beverage companies on formula adjustment while reducing sugar. Sappe’s research and development team has prepared for the situation. In addition, its long-term target remains taking part in helping Thai people improve their health, following the company’s mission and the government’s policy”, said Piyajit.
He said the company’s marketing plan this year is focused on its strength in innovation and to establish a difference from its competitors in order to enter more oversea and local markets.
Meanwhile, it has reinforced its management team for sales and marketing with Worapong Kietdumrongwong as Chief Commercial Officer.
Worapong has 27 years of experience in sales and marketing , having served as senior executive in multinational companies, responsibe for strategy development, providing oversea and local marketing plans, taking care of overall corporate communication and public relations with efficiency.
“This year, we have reinforced the management team with experienced and skillful executives from the food and beverage industry in order to pursue our aggressive marketing expansion. We have a plan to expand our product portfolio within new product groups and to new countries with confidence that this will lead to a 10-per cent growth as planned,” she said.