Sermsuk launches cola brand in Thailand, aims to overtake market leader Pepsi

The introduction of the cola brand is part of Sermsuk’s wider launch of a full-range carbonated soft drink (CSD) line named “est”. It plans to enter all segments, including flavoured and lemon-lime beverages, under a single brand strategy.

The company hopes to penetrate and shake up the US$1.2 billion carbonated soft drink market in Thailand, currently dominated by PepsiCo. Sermsuk is aiming to become a market leader, targeting sales of $US260 million (8 billion Baht) in the cola brand’s launch year.

The launch of “est” positions Sermsuk as a direct competitor to Pepsi, following a 59-year-old bottling and distribution partnership between the two players that ceased this week.

Sermsuk has therefore already built a strong distribution network nationwide, with five production plants, 1,200 sales trucks and 200,000 retail outlets, and is expecting this will help ensure “est” becomes the CSD brand of choice in Thailand.

Coca-Cola is also reportedly seeking to take advantage of the split between Pepsi and Sermsuk, and is said to be spending 200 million Baht on marketing this quarter in a bid to become the dominant cola player.

Somchai Bulsook, CEO, Sermsuk, said the launch of the CSD line marks a new chapter in the history of Thailand’s beverage industry.

“The launch of the ‘est’ brand of carbonated soft drinks fulfills our business direction of being a producer and distributor of our own line of carbonated beverages,” he said. “We will drive the popularity of the ‘est’ brand through the “Advertising Must Hit The Heart, Sales Must Hit The Target” operational strategy that Sermsuk has used to make so many other brands a success in the Thai market.”

A total of US$9 million (300 million Baht) has been budgeted for the brand’s launch period. MEC Thailand is handling the media planning and buying for the "est" launch with budget of more than US$3 million (100 Million Baht). JWT Bangkok is handling the creative duties.

The brand is seeking to position itself as Thailand’s “cool-est” phenomenon, aiming to target teenagers and Thai consumers seeking new experiences.

It will launch a full-scale marketing campaign, which will be backed by the distribution of product samples to more than one million people nationwide.