January 22, 2024

Suntory Beverage & Food Will Increase Beverage Production in Southeast Asia

HSJ - stock.adobe.com

Suntory will invest more than 15 billion yen in beverage factories in Thailand and Vietnam to increase production capacity for coffee drinks, typified as "BOSS." After the fallout from the new coronavirus, demand for coffee for refreshments and oolong tea for health-conscious consumers is growing, and it will further expand its overseas business.

Suntory will invest 8.7 billion yen in the beverage factory of Suntory PepsiCo Beverage Thailand, a joint venture with US PepsiCo, in Saraburi province, northeast of Bangkok.

Construction will start on several production lines, including "BOSS," a coffee beverage, in 2024 and is anticipated to be completed in October 2025.

The company has not disclosed the plant's production capacity. Currently, there are four lines at the Saraburi plant. The new line will produce 31 million cases annually, increasing the plant's production capacity by more than 50%.

Suntory will also invest 7 billion yen in Vietnam and build a new production line for 19 million cases per year at the Suntory PepsiCo Vietnam Beverage plant in the country's northern Bac Ninh Province and a new beverage plant in the southern Long An Province. Both are scheduled for completion in 2025. Increasingly health-conscious in the local market, it will increase its production capacity of oolong tea "TEA+" and other products.

Makiko Ono, president of Suntory Beverage & Food, explains, "In Asia, there is a growing need for coffee and other activities to help people reset their feelings of confinement following the behavioral restrictions imposed by COVID-19."