Bangkok, Sep. 7 - Tipco Foods (Thailand) (“TIPCO”) has agreed with Suntory Limited to form 50/50% joint venture to expand their beverage business in Thailand and ASEAN region.
To this equity alliance, Suntory will acquire 50% equity stake in Tipco’s beverage business subsidiary – Tipco F&B for the value of approximately One Billion Baht. The agreement had been signed on the evening of September 6th, 2007.
The formation of this alliance has been strongly driven by different but complementary strengths of both parties for the same business objective to expand refreshing and healthy drinks in the fast growing Southeast Asian market, including Thailand. Combined resources and expertise by both parties will promote business synergies in branding, new product development, meeting customers’ need, shared technical know-how & a newly built world-class manufacturing facility at Wang Noi, Ayudhya as well as management & local knowledge.
“The partnership between two countries’ beverage leaders are a real win-win business model. Suntory’s strategic move with TIPCO partnership will shorten time to expand into ASEAN beverage market with the help of Tipco on local insights & production facilities while Tipco can speed up new product launch with technical assistance from Suntory. The synergy of this partnership will contribute to both parties better than when each party operates separately. Tipco is strong in juice and cereal drinks in aseptic carton packaging while Suntory is dominant in functional drinks and tea in aseptic PET bottle packaging.” Said Ms. Anurat Tiamtan, Tipco’s Board Chairlady.
Mr. Hong Sik Park, Chief Executive, Suntory’s International Division, Beverage & Food commented that “We are very pleased to enter this JV with Tipco, a company with proven expertise in developing premium juice or other non-alcoholic beverages. This is a significant new venture for us, and we look forward to rapidly bringing some new and exciting products to consumers in Thailand and to further expanding into other Southeast Asian market”.
Tipco is the leading food company in Thailand with its shares listed in the Stock Exchange of Thailand. The core businesses are in pineapple/tropical fruit export, ready to drink beverages (like Tipco 100% juice, Nature Up cereal drink, and Aura Mineral Water), Squeeze juice smoothie outlets, herb extraction and fresh produces like fruits and vegetables. With over 30 years in operation, the company has expanded from fruits/vegetables processing manufacturing for OEM export to owned-brands marketing in beverage market and out-of-home market. At present, Tipco is the number one juice brand in Thailand. Tipco recorded Bt 3,701.6 Million sale in 2006.
Suntory is the Osaka based company with over 100 years of business operation in Japan. Suntory is known and is now the largest wine and spirits manufacturing company in Japan. But over years, the company expands its business, and is now one of the largest non-alcoholic beverage companies in Japan with various popular brands of ready-to-drink beverages in various categories. In addition, Suntory also does businesses in health foods, fast food, restaurant and flower. Geographically, Suntory has extended its operations overseas in the United States, Europe as well as Asia. Suntory had sale turnover of Jpy 1,414 Billion (or Bt 404 Billion) in 2006.