Ajethai, the wholly owned local manufacturing and marketing subsidiary of the Aje Group, owner of the Big Cola drink brand, has spent more than Bt5 billion this year to expand its beverage business in Thailand.
Marketing manager Chanin Thiencharoen said the company had already spent Bt2 billion to add a new production line at its existing beverage plant in Chon Buri's Amata Nakhon Industrial Estate. The expansion gave the factory six production lines altogether.
"With the new investment, we were able to double the production capacity for cola drink product to 1.5 million cases or 72 million bottles a month. It will serve the increasing market demand for Big Cola in Thailand," Chanin said.
He said the company would also spend between Bt3 billion and Bt4 billion this year to build a new beverage plant, maybe at some location in the central or northeastern region.
The new plant will produce carbonated drinks as its main product. A decision on the location is expected in the third quarter.
Chanin said the Aje Group - one of the world's leading beverage companies, with a strong presence in more than 10 Latin American markets - recently moved its headquarters from Peru, where the Big Cola brand originated, to Spain.
The company entered Thailand three years ago by setting up its wholly owned subsidiary with its first manufacturing plant in the Amata Nakhon Industrial Estate at a cost of more than Bt3 billion.
Chanin said Thailand was the Aje Group's first Asian country, as well as its first investment outside of Latin America. In addition to Thailand, the Aje Group three months ago opened a new factory and distribution and marketing operations in Vietnam, its second Asian market.
The group will enter Indonesia next.
"At the Aje Group, we produce and distribute more than 20 brands in many beverage categories, including beer, fruit juice, carbonated drinks, drinking water and soda water. And we're in the process of introducing other beverage products into the local market," Chanin said.
He said the company introduced Big Orange, a 10-per-cent orange-juice drink, into the market at the beginning of the year. It will launch ready-to-drink tea into the market by the third quarter.
Chanin said Big Cola had a 25-per-cent market share in traditional retail outlets, which accounted for almost 80 per cent of the Kingdom's Bt35-billion carbonated-beverage market.
"We posted more than 30-per-cent growth last year, and the same is projected for this year," he said.
Chanin said the company would spend Bt200 million to Bt300 million on marketing this year, or about 3 per cent of overall sales.
Ajethai yesterday announced it paid Bt80 million for the local rights to use the England national-team logo in its marketing and media activities aimed at promoting an international image for its Big Cola product.
The company also launched a "Big Cola Be England" campaign, to support England in the World Cup, which kicks off today.
"England's national team is one of the most popular football teams among Thai fans. One survey found 80 per cent of Thai football fans were loyal to that team and hoped it won the World Cup. Most of the local fans are of the new generation, even females, and this is Big Cola's desired target group," Chanin said.