Sermsuk Plc, the producer of Crystal drinking water, aims to expand the market for Crystal to surrounding region by 2025.
Lester Teck Chuan Tan, the company's President said Sermsuk is conducting a feasibility study of marketing Crystal drinking water in the ASEAN market particularly in Cambodia, Laos, Myanmar and Vietnam (CLMV). He said the company could possibly take advantage of synergy with Thai Beverage's network in the CLMV market for drinking water expansion in future.
However, before expanding into the CLMV market, the company wants to strengthen its position in the domestic market. The company plans to build a new factory for Crystal drinking water somewhere in Thailand this year. It will invest Bt 300 million (US$9.62 million) in the new plant, similar in cost to its existing plant in Surat Thani province.
“We want to build a plant somewhere that can deliver our drinking water to customers in a 200km radius for good return on investment and cost management efficiency,” Tan added.
Crystal drinking water is currently produced at 18 factories across the country with total production capacity of 1,200 million litres a year. The rapidly growing brand has 20% share of the Bt35 billion (US$1.12 billion) drinking water market, up from 17% last year. With an aggressive marketing plan, the company expects market share of Crystal to increase to 25% by the end of 2018.
While Sermsuk is stealing market share from brand leader, Singha, the latter is now devising strategy to claw back market share in 2018. Singha has witnessed its share dropping from 27% to 20% recently. Singha’s main customer group belongs to 35 years old and above, as such in 2018, it will expand its customer base to include younger consumers.