Soft drinks: Coke rises, Pepsi falls

Coke sales grew 32% worldwide last year, highest in 10 years. Coke market share rose to 50% with Pepsi falling to 15% & new brand est rising to 19%.

Coca-Cola executives announce their expansion plans while also celebrating market leadership for the first time in two and a half decades at a briefing yesterday. (Photo: Pattarachai Preechapanich).

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Beverages

Coke gassed as Pepsi fizzles

Pepsi vanishes after dispute with Sermsuk
5 Mar 2013
Pitsinee Jitpleecheep

The battle between Sermsuk Plc and Pepsi-Cola Trading (Thailand) has left a chasm for rival Coca-Cola (Thailand) to capture market share, claiming the No.1 slot in the overall soft drink market for the first time in 25 years.

Coca-Cola (Thailand) said its market share in 2011 was 42%, Pepsi was at 48% and Big Cola 10%. By the end of 2012, Coke jumped to 50%, Big Cola gained to 16% and Pepsi dipped to 34%.

Sermsuk's new brand 'est', which launched only four months ago, reported a 19% market share as of February, with Pepsi freefalling to 15%. Est aims to reach No.2 by the end of this year.

Thailand's carbonated drink market is valued at 44 billion baht.

Sales of Coca-Cola (Thailand) grew by 23% to a record 30 billion baht last year. 

"The growth rate of Coke alone was 32% last year, the highest in 10 years. Globally Coke grew at the second fastest pace in Thailand after India, after finishing in the top 20 the previous year," said Antonio Rosario, general manager of Coca-Cola (Thailand) Ltd.

In terms of volume, Coca-Cola Thailand ranks 19th out of 200 countries where Coca-Cola is sold.

"We aim to double our sales to 60 billion baht by 2020, with Coca-Cola doubling globally over the same period," he said.

The company plans continuous investment in Thailand, with 1.4 billion baht slated for a new factory in Surat Thani province operated by Haad Thip Plc, he said. The production capacity of soft drinks in PET bottles will rise 200% to 15 million bottles per year. Operations at the new PET factory will start next month. 

Thai Amianthus, the local bottler of Coke, Fanta and Sprite, plans to spend 2.6 billion baht this year to install new machines at factories in Rangsit and Pathum Thani, raising capacity by 35%.

"Last year was the first time in 54 years that ThaiNamthip gained market leadership in all categories we competed in," said Pornwut Sarasin, vice-chairman of ThaiNamthip. 

Maj Gen Patchara Rattakul, chief operating officer of Haad Thip, said Coke became the market leader in cola drinks in the southern, northern and northeastern provinces a long time ago. Only in the central region and Greater Bangkok area did Coke have weak advertising, distribution, and product management, he added.

Mr Pornwut said the company invested heavily in its logistics and distribution network the past six years, which has led to better results

(Source: Bangkok Post, Economics, Coke gassed as Pepsi fizzles, Pepsi vanishes after dispute with Sermsuk, 5 Mar 2013, Pitsinee Jitpleecheep, link)


Soft Drink Industry Vocabulary

soft drink - "a soft drink (also called soda, pop, coke, soda pop, fizzy drink, tonic, seltzer, mineral, sparkling water, or carbonated beverage) is a beverage that typically contains water (often, but not always carbonated water), usually a sweetener, and usually a flavoring agent. The sweetener may be sugar, high-fructose corn syrup, fruit juice, sugar substitutes (in the case of diet drinks) or some combination of these. Soft drinks may also contain caffeine, colorings, preservatives and other ingredients. Soft drinks are called "soft" in contrast to "hard drinks" (alcoholic beverages)" (See Wikipedia)

carbonation - putting or dissolving carbon dioxide in liquid under high pressure, "when the pressure is reduced, the carbon dioxide is released from the solution as small bubbles, which cause the solution to "fizz". This effect is seen in carbonated soft drinks" (See Wikipedia)
carbonated drink - Same as "soft drink"

carbonated drink market
Thailand's carbonated drink market is valued at 44 billion baht.

Coke - a popular US soft drink popular around the world, introduced in 1886 (See Wikipedia)
Pepsi - one of the most popular soft drinks in the world, first developed in 1893 (See Wikipedia)
Big Cola - as cola drink originally from Peru (See Wikipedia)

Cola Wars - the long competition and rivalry between Coca Cola and Pepsi in products and advertising (See Wikipedia)

bottler - the company that puts a drink such as beer or coke in bottles and sends it to stores (in a local area, such as Chiang Rai, for example): the company Coca Cola "produces concentrate, which is then sold to licensed Coca-Cola bottlers throughout the world. The bottlers, who hold territorially exclusive contracts with the company, produce finished product in cans and bottles from the concentrate in combination with filtered water and sweeteners. The bottlers then sell, distribute and merchandise Coca-Cola to retail stores and vending machine" (See Wikipedia & Coca Cola)

rival - a person, group, team or business that competes with another คู่แข่ง
Pepsi's rival Coca-Cola


leader -  ผู้นำ
market leader - the product, brand or company that sells the most product in a market (leading sales)

the market leader in cola drinks

became the market leader in cola drinks

leadership - the condition or state of being the leader ความเป็นผู้นำ, ความสามารถในการเป็นผู้นำ
market leadership

executives - a high level manager in a company (making plans and ensuring they executed successfully) ผู้บริหาร

expansion - when something increases in size, number or importance การขยายออก
expansion plans

celebrating - doing fun things and special events because of something special that happened
celebrating market leadership

decades - periods of ten years เป็นสิบๆปี
two and a half decades

briefing - a short meeting to provide needed information to people คำแถลงการณ์สั้น,สรุปแบบสั้นๆ

Coca-Cola executives announce their expansion plans while also celebrating market leadership for the first time in two and a half decades at a briefing yesterday.  (Photo: Pattarachai Preechapanich). 


Coke gassed - meaning: Coke moving fast (like when a person driving a car steps on the gas pedal) 

fizzle -
to fizzle out, to gradually fail or disappear (after starting successfully)
Pepsi fizzles  

X as Y - X happens as Y happens at the same sime
Coke gassed as Pepsi fizzles

vanish - disappear  หายไป
dispute - a serious disagreement, argument, fight about something; a conflict ข้อพิพาท การโต้เถียง, ความขัดแย้ง

Pepsi vanishes after dispute with Sermsuk

capture - to get some; to take something and control it จับกุม
market share - the percentage of sales in a market for a particular type of product that a company has, compared with the total sales
capture market share

chasm - a very big difference separating two things ช่องว่าง

The battle has left a chasm for rival Coca-Cola (Thailand) to capture market share

overall - all of it, the whole thing, everything included
the overall soft drink market

the No.1 slot -
number one, first place
claiming the No.1 slot

claiming the No.1 slot
in the overall soft drink market for the first time in 25 years

AC Nielsen -
the most famous market research company (See Wikipedia)
research company AC Nielsen

brand - a type of product made by a particular company ตรา, ยี่ห้อ
launch - begin ; start something new เริ่ม เริ่มต้นดำเนินการ
launch brand

the new brand launched only four months ago

Sermsuk's new brand 'est', which launched only four months ago, reported a 19% market share as of February, with Pepsi freefalling to 15%. Est aims to reach No.2 by the end of this year.

record - the best or most ever achieved สถิติ
Sales of Coca-Cola (Thailand) grew by 23% to a record 30 billion baht last year. 

rate -  อัตรา
growth rate -  การเจริญเติบโต

pace - the speed at which something happens ท่างทำนอง ย่างก้าว จังหวะ ที่สิ่งต่างๆ ดำเนินไป
grew at the second fastest pace in Thailand after India

"The growth rate of Coke alone was 32% last year, the highest in 10 years. Globally Coke grew at the second fastest pace in Thailand after India, after finishing in the top 20 the previous year," said Antonio Rosario, general manager of Coca-Cola (Thailand) Ltd.

In terms of - measured by
volume - the quantity or amount of something
In terms of volume - as measured by volume

ranks -
the position of something (compared to others)
Thailand ranks 19th

In terms of volume, Coca-Cola Thailand ranks 19th out of 200 countries where Coca-Cola is sold.

double - to become twice as big, twice as much or twice as many เพิ่มเป็นสองเท่า
double sales

aim - the thing you hope to achieve by doing something เป้าหมาย จุดมุ่งหมาย
we aim to double our sales

globally - throughout the world ทั่วโลก
doubling globally

"We aim to double our sales to 60 billion baht by 2020, with Coca-Cola doubling globally over the same period," he said.

investment - taking your money and putting it into projects to make a profit or earn interest (buying stock shares, bonds, real estate)
continuous investment

slated for ... - is planned for ..., is scheduled for ... 
1.4 billion baht is slated for a new factory

The company plans continuous investment in Thailand, with 1.4 billion baht slated for a new factory in Surat Thani province operated by Haad Thip Plc, he said.

PET - a durable kind of plastic "commonly used for carbonated beverage, water bottles and many food products. PET provides very good alcohol and essential oil barrier properties, generally good chemical resistance and a high degree of impact resistance and tensile strength" (See Wikipedia)

PET bottles
PET factory

production capacity - the amount of something that can be produced ความสามารถในการ (ผลิต)
the production capacity of soft drinks in PET bottles

The production capacity of soft drinks in PET bottles will rise 200% to 15 million bottles per year. Operations at the new PET factory will start next month.

local - in this country (Thailand)
local bottler of Coke, Fanta and Sprite

install - put a piece of equipment somewhere and make it ready to be used ติดตั้งอุปกรณ์
install new machines at factories

Thai Amianthus, the local bottler of Coke, Fanta and Sprite, plans to spend 2.6 billion baht this year to install new machines at factories in Rangsit and Pathum Thani, raising capacity by 35%.
 
category - หมวด, หมู่, หมวดหมู่, ประเภท
the company gained market leadership in all categories they competed in

Coke became the market leader in cola drinks in the southern, northern and northeastern provinces a long time ago.

advertising - ธุรกิจโฆษณา, สิ่งโฆษณา,  สิ่งที่ใช้ในการโฆษณา, งานโฆษณา
distribution - giving or delivering things to many people การจำหน่ายออกไป
product management - the process of planning and directing the products that a company produces and the way that they are sold (See Wikipedia)

Only in the central region and Greater Bangkok area did Coke have weak advertising, distribution, products management, he added.

logistics - transporting, tracking, and storing goods in a warehouse between factory and store (See Wikipedia) การขนส่งและจัดจำหน่ายสินค้า

distribution
- the activity of making a product available to customers,  supplying to stores; storing, tracking, transporting, delivering a product to stores or customers (See Wikipedia)

network - a large system of connected parts, organisations, people, etc. เครือข่าย
distribution network

results - what is produced in the end by an activity or task
the decision led to better results

the company invested heavily in its logistics and distribution network the past six years, which has led to better results

About the author

columnist
Writer: Jon Fernquest
Position: Online Writer