When the deal closes, by March 2018, the joint venture will become Suntory PepsiCo Beverage (Thailand) Co Ltd. The deal is expected to strengthen Suntory’s position in the expanding Thailand F&B market and help PepsiCo in adding healthier products to its beverage portfolio.
Suntory first entered Thai F&B market through a joint venture with Tipco Foods (Thailand) in 2007, which focused on healthy beverages, but this was dissolved in March 2017 due to poor sales. Suntory sees the latest transaction as a strategic growth move due to Thailand’s “rapid urbanization and a younger population relative to other regions”, according to its CEO Beverage & Food Asia. It already has a joint venture with PepsiCo, formed in 2012 when it bought a 51% stake in PepsiCo’s Vietnam beverage business.