wspaper section: Business
Tipco Foods Plc is in talks with Suntory of Japan to expand their cooperation on Tipco beverages in Asean, which is set to become a single market by 2016.
Indonesia and Vietnam are on the horizon, says Mr Ekaphol.
Managing director Ekaphol Pongstabhon said Tipco is negotiating with its Japanese partner to make Tipco 100% juices at a Suntory factory in Indonesia. The products will be sold in the Indonesian market, replacing those exported from the Thai factory.
Suntory also plans to open a factory in Vietnam. Tipco wants to use the new factory to make its premium juices and serve the Vietnamese market.
With these moves, Tipco hopes to increase its competitiveness in the two promising markets.
"We see a lot of opportunities in Asean," said Mr Ekaphol.
"The onset of the Asean Economic Community by 2016 will result in a wave of money and investment across the region. With better economic situations, people will have more purchasing power and it will benefit premium juices like Tipco brand."
Apart from Indonesia and Vietnam, the company signed a deal with a Korean firm to distribute Tipco juices in South Korea starting last month.
"Tipco sales in South Korea are about two times higher than expected," said Mr Ekaphol.
"We sell our juices via distribution firms and will take a further step by having business partners make and market our products there."
Exports contribute 15% of Tipco's sales. The company aims to raise that figure to 25%.
While the baht is getting stronger, the company has seen a modest impact from foreign exchange loss, which can be offset by importing raw materials at cheaper prices.
Tipco is awaiting approval from Suntory to expand its domestic partnership this year. The two have formed a joint venture, Tipco F&B, to make green tea for the Thai market.
Tipco plans to increase its marketing budget by 25% to 500 million baht this year to promote Tipco 100% juices.
Per-person consumption of fruit juice in Thailand is about four litres a year, compared with 20 litres in Japan and 50 litres in Canada.
"We will communicate that our 100% juices are made of natural fruit like oranges, not concentrate, in order to attract new customers," said Mr Ekaphol.
The Thai fruit juice market is estimated at 12 billion baht. Of the total, premium juices account for 4.5 billion baht.
With a 43% share, Tipco is the market leader for 100% fruit juice. Its sales last year reached 5.5 billion baht, up 15% from 2011.