In today’s increasingly dynamic and uncertain environment, Thailand’s beverage industry continues to evolve as consumer lifestyles shift and expectations around health and sustainability increase.
Against this backdrop, strengthening resilience and agility has become a strategic priority for Suntory PepsiCo Beverage (Thailand). The company’s growth strategy is rooted in combining strong local expertise with the global capabilities of Suntory and PepsiCo.
“We leverage an in-depth understanding of Thai consumer behaviours, cultural nuances and consumption occasions, and integrate these insights with global innovation, brand strength, and operational excellence,” said Tanuj Chadha, Chief Executive Officer of Suntory PepsiCo Beverage (Thailand).
Beyond responding to short-term market shifts, the company is also focused on building long-term organisational resilience through portfolio transformation, operational agility, and continuous innovation across the business.
Mr. Chadha noted that today’s consumers increasingly seek reduced-sugar options, healthier beverages, and products that support both everyday refreshment and active lifestyles.
He said the company’s product development emphasises transforming base products into healthier, indulgent options.
“With a strong foundation, we continue enhancing our products to make them both healthier and indulgent,” said Mr. Chadha.
PRODUCTS FOR DIVERSE NEEDS
He said the company has embraced a portfolio strategy designed to meet the diverse needs of Thais, ranging from consumers seeking affordability and value to those seeking premium experiences, with innovation playing an important role in helping the company address evolving consumer preferences and unlock new growth opportunities.
For its core offerings, the company focuses on established brands such as Pepsi and TEA+ (Tea Plus) , with a mission to deliver enjoyment, refreshment, and innovation to consumers.
“We ensure our brands remain accessible and affordable, while maintaining relevance through continuous innovation and differentiation,” said Mr. Chadha, citing Pepsi Zero Sugar as a sugar-free option, and Pepsi Treats Strawberries ‘n’ Cream—also sugar-free but more novel and experiential—which resonates with younger consumers.
The company also recorded significant growth in its functional beverage segments, including energy drinks and hydration products. In these categories, the focus is on building brand relevance and clarity, ensuring consumers understand each product’s unique benefits.
Earlier this year, the company introduced “Suntory Hy! WATER-LOCK”, a yuzu-flavoured hydration beverage.
“We utilise Suntory Japan’s technology, designed to help retain water in the body for longer periods,” Mr. Chadha said.
The company is also responding to the increasing demand for premium products by offering café-inspired beverages at more accessible price points.
This segment addresses the afternoon break, providing consumers with a unique treat during that time of day, with brands in this segment such as TEA+, an authentic tea brand, and Boss Coffee, both parts of Suntory’s portfolio.
Mr. Chadha said that by maintaining a diversified portfolio, the company is well-positioned to capture growth opportunities and enhance business resilience across market conditions. This strategy is intended to strengthen the company’s long-term competitiveness amid economic uncertainty and global challenges.
CONSUMER-CENTRIC APPROACH
This year, innovation remains central to the company’s evolution of its beverage portfolio, reflecting the changing lifestyles of Thais. Guided by deep consumer insights, this approach ensures new offerings consistently balance enjoyment, quality, and well-being, while supporting long-term portfolio growth and business resilience.
Instead of relying solely on traditional research results, the company embraces “Gemba”, a Japanese term meaning “the actual place” as a core principle guiding how Suntory PepsiCo Thailand works and understands consumers.
“Seeing is believing. At Suntory PepsiCo Beverage (Thailand), we immerse ourselves in real consumer environments to uncover authentic behavioural insights firsthand.
Some of the most meaningful insights are never spoken — they are observed. One example came from identifying unnoticed dehydration caused by prolonged time in air-conditioned environments, which inspired hydration solutions powered by Water Lock technology.
Combined with digital tools and data analytics, this consumer-centric approach enables us to stay closely connected to evolving consumer behaviours and respond with greater speed, relevance, and impact,” said Yutana Jitcharoongphorn, Senior Vice President of Marketing, Suntory PepsiCo Beverage (Thailand).
ACCELERATING DIGITALISATION
The company is investing in digitalisation and advanced supply chain capabilities to enhance end-to-end visibility, improve demand forecasting, and optimise operational efficiency across the value chain.
Digitalisation also plays a role in observing consumer behaviour, such as holding an on-site event at a supermarket, encouraging consumers to purchase products and scan the QR code to win prizes.
Mr. Chadha said the company analyses aggregated engagement insights from QR code campaigns to better understand consumer interaction patterns and consumption occasions.
Through real-time scanning data, the company identified a peak engagement period between 1pm and 3pm, referred to as the “after-lunch slump” when many consumers experience a natural dip in energy following meals.
These data-driven insights enable the company to align its marketing and distribution strategies with the precise moments when consumers are seeking refreshment or an energy boost, he said.
SUSTAINABILITY PUSH
By leveraging deep local consumer insights alongside the global expertise of Suntory and PepsiCo, the company is committed to delivering relevant beverage solutions and driving sustainable growth in Thailand.
Sustainability continues to be a core focus of the company’s operations, particularly through progress in circular packaging and enhanced resource efficiency in manufacturing.
Suntory PepsiCo Beverage (Thailand) is the first company in Thailand to use 100% recycled PET bottles (rPET) for selected Pepsi and TEA+. The company has also introduced lightweight caps for carbonated soft drinks without compromising quality. These efforts have helped reduce the use of virgin plastic by more than 10,000 tonnes since 2018.
The company also collaborates with partners and communities to strengthen Thailand’s recycling ecosystem, reinforcing sustainability as a long-term business priority. For instance, it works with local partners on waste segregation and promotes “Bottle-to-Bottle” recycling at major events such as the Pepsi presents Big Mountain Music Festival. It has also established community-based initiatives, including the “Suntory PepsiCo Thailand-Recyclable Waste Buy Station” in Rayong.
Beyond packaging initiatives, the company continues to promote water sustainability through the “Mizuiku” programme, a water conservation education initiative that has reached more than 32,000 students and teachers from nearly 400 schools nationwide since 2019.
INVESTMENT IN THAILAND
“Suntory PepsiCo Thailand views Thailand as a high-growth and priority market. We believe that, despite economic and geopolitical challenges, the company can achieve strong progress here,” said Mr. Chadha.
To meet evolving consumer demands, the company is bringing in and adapting relevant product portfolios from PepsiCo and Suntory, while strengthening operational excellence through continued investments in manufacturing capabilities, digitalisation, and supply chain efficiency.
This includes an investment of over 2 billion baht to expand production capacity at its Saraburi plant, reflecting the company’s long-term confidence in Thailand’s growth potential and its strategic importance within the region.
With two new, advanced production lines, the company is enhancing productivity, resilience and product quality, while supporting the transformation of its portfolio across a broader range of beverage categories. These investments reinforce the company's commitment to responsible, sustainable growth over the long term, Mr. Chadha explained.
"In the short-term, we are accelerating portfolio transformation to meet evolving consumer needs, while strengthening digital capability to drive faster, more agile execution across every touchpoint," said Mr. Chadha.
“Over the long term, all investments we are making in — innovation, capability building, a resilient culture, sustainability — are directed towards achieving our vision of becoming ‘The Most Beloved Beverage Company in Thailand with True Gemba Centricity.’”
