Suntory Beverage & Food and PepsiCo have agreed to create a soft drink joint venture in Thailand, helping Suntory expand its beverage business in the country.
Suntory will acquire 51% of the shares in International Refreshment (Thailand) Co, a PepsiCo operation, for 33bn yen ($289.63m). The venture will be renamed as Suntory PepsiCo Beverage (Thailand) Co. Ltd.
“Thailand is the one of the largest beverage markets in Southeast Asia and is expected to continue expanding, backed by its GDP growth,” said Suntory Beverage & Food as it announced its acquisition of the shares and formation of the joint venture with PepsiCo today.
“PepsiCo has a solid business platform in Thailand with its strong brand equity, manufacturing facilities and sales network. The acquisition will enable SBF to expand its beverage business in Thailand, and also further strengthen PepsiCo’s beverage business in the significantly growing Thailand market.
“Through the establishment of the joint venture, SBF and PepsiCo plan to grow their beverage business in Thailand by leveraging each company’s respective strengths: SBF’s expertise in development of products to meet healthier demands, including ready-to-drink tea, and PepsiCo’s strong business platform.”
Source: Rachel Arthur, Food Navigator Asia