Alliance will seek to grow north ASEAN operations through combination of capabilities and scale
09 Feb 2024 – The Coca-Cola Company, ThaiNamthip Corporation Limited and Swire Coca-Cola Limited have announced today they have entered into definitive agreements to form a strategic bottling alliance in north ASEAN, including Thailand, Laos, Vietnam and Cambodia.
The companies will align the management, governance and growth objectives across the ThaiNamthip and Swire Coca-Cola franchise territories with an aim to become the undisputed leader in the beverages market in the region. The alliance will drive profitable growth through world-class differentiating capabilities and a relentless focus on customers and consumers.
The alliance will leverage the local knowledge and understanding in Thailand and Laos of ThaiNamthip and the global perspective of Swire Coca-Cola. Through the combination of their capabilities, scale, and capacity to invest locally, the alliance will seek to achieve their substantial long-term growth ambitions.
The alliance will be brought about by The Coca-Cola Company divesting its minority ownership of ThaiNamthip to both ThaiNamthip and Swire Coca-Cola immediately after signing today. Additionally, subject to regulatory approvals, Swire Coca-Cola will take a controlling stake in ThaiNamthip’s bottling operations in Thailand and Laos, and ThaiNamthip will take a minority stake in Swire Coca-Cola’s bottling operations in Vietnam and Cambodia.
Coca-Cola ASEAN and South Pacific President Claudia Lorenzo said, “Coca-Cola is celebrating 75 years in Thailand this year. We are delighted that in this anniversary year two exceptional bottling partners are joining forces in our key north ASEAN markets. Between them they bring the local knowledge and global insights that will accelerate all our markets forward into the future.”
Karen So, Managing Director of Swire Coca-Cola Limited, said, “We are thrilled to further expand our presence in South East Asia to Thailand and Laos. This investment highlights our robust partnership with The Coca-Cola Company and the impressive strength and capabilities of our local partner, ThaiNamthip. The investment underscores the immense growth potential we see in Thailand and Laos. Together, we are poised to bring unparalleled expertise, capabilities, and ambition to accelerate growth throughout the north ASEAN region. Our expansion also aligns with Swire Pacific’s strategic, long-term plan of continuous investment in Hong Kong, the Chinese Mainland and South East Asia.”
Ignace Corthouts, President of ThaiNamthip Corporation, said, “Today marks an important milestone for ThaiNamthip, as we embark on our next chapter of growth. The bottling alliance between ThaiNamthip and Swire Coca-Cola – one of the top five bottlers in the world – will combine the strengths and capabilities of both companies, as well as our unwavering commitment to customers and consumers, to capture untapped opportunities in the north ASEAN region.”
The transactions are subject to the parties receiving regulatory approvals. The parties are committed to working together to implement a smooth implementation with minimal disruption for customers, consumers and system employees.