Haadthip Shifts Focus to Non-Sugar Beverages Amid Health Trends
The company targets 5-7% revenue growth for 2025, responding to rising health consciousness and new sugar tax regulations.
Haadthip, the exclusive bottler and distributor for Coca-Cola across 14 southern provinces of Thailand, is increasingly concentrating on the non-sugar beverage sector as consumer preferences shift towards healthier options.
The company reported that zero-sugar beverages constituted approximately 5% of its total sales in 2024, reflecting a substantial 23% increase compared to the previous year.
Maj Gen Patchara Rattakul, the chief executive of Haadthip, highlighted significant growth potential in the zero-sugar category, which remains a small fraction of overall sales.
Haadthip is actively collaborating with Coca-Cola to develop new products in this rapidly expanding segment.
The company's objective is to expand its presence in the zero-sugar market, driven by growing demand from health-conscious consumers and in anticipation of the financial implications of the anticipated sugar tax.
This tax, which will see its fourth phase implemented on April 1, classifies beverages based on their sugar content, imposing varying levels of excise tax ranging from 1 baht per litre for sugar content between 6-8 grams per 100 millilitres, to 5 baht per litre for those exceeding 10 grams.
Maj Gen Patchara acknowledged the significant challenges posed by the sugar tax and highlighted the impact of rising raw material costs, including packaging.
Despite these pressures, the company aims to maintain stable product pricing for as long as feasible.
He also noted that approximately 20% of Haadthip's customer base consists of tourists, linking sales recovery strongly to the tourism sector.
For 2025, Haadthip is targeting overall revenue growth of 5-7%, with projected sales reaching 8.7 billion baht.
The company has set ambitious sales targets, aspiring to achieve 11 billion baht by 2027 and 15 billion baht by 2032. To realize this growth, Haadthip plans to boost its market share in sparkling beverages to over 80% from 78.3% in 2024. This expansion strategy also includes diversifying its product offerings by entering new categories and enhancing its existing range of still beverages, which currently encompasses juice, drinking water, and tea.
The company reported that zero-sugar beverages constituted approximately 5% of its total sales in 2024, reflecting a substantial 23% increase compared to the previous year.
Maj Gen Patchara Rattakul, the chief executive of Haadthip, highlighted significant growth potential in the zero-sugar category, which remains a small fraction of overall sales.
Haadthip is actively collaborating with Coca-Cola to develop new products in this rapidly expanding segment.
The company's objective is to expand its presence in the zero-sugar market, driven by growing demand from health-conscious consumers and in anticipation of the financial implications of the anticipated sugar tax.
This tax, which will see its fourth phase implemented on April 1, classifies beverages based on their sugar content, imposing varying levels of excise tax ranging from 1 baht per litre for sugar content between 6-8 grams per 100 millilitres, to 5 baht per litre for those exceeding 10 grams.
Maj Gen Patchara acknowledged the significant challenges posed by the sugar tax and highlighted the impact of rising raw material costs, including packaging.
Despite these pressures, the company aims to maintain stable product pricing for as long as feasible.
He also noted that approximately 20% of Haadthip's customer base consists of tourists, linking sales recovery strongly to the tourism sector.
For 2025, Haadthip is targeting overall revenue growth of 5-7%, with projected sales reaching 8.7 billion baht.
The company has set ambitious sales targets, aspiring to achieve 11 billion baht by 2027 and 15 billion baht by 2032. To realize this growth, Haadthip plans to boost its market share in sparkling beverages to over 80% from 78.3% in 2024. This expansion strategy also includes diversifying its product offerings by entering new categories and enhancing its existing range of still beverages, which currently encompasses juice, drinking water, and tea.
