Haadthip is putting greater focus on non-sugar beverages as consumers become more health-conscious and the company looks to lessen the impact from the sugar tax.
As the exclusive bottler and distributor for Coca-Cola in 14 southern provinces, Haadthip reported that the zero-sugar beverages category accounted for around 5% of total sales in 2024, a 23% increase from 2023.
Maj Gen Patchara Rattakul, chief executive of the company, emphasised the potential for significant growth in this segment as it currently represents a small share of overall sales.
The company is collaborating with Coca-Cola to introduce new products, especially in the fast growing zero-sugar category, he added.
"Our goal is to expand our growth in the zero-sugar market, as we observe an increasing demand from health-conscious consumers, while also addressing the impact of the rising sugar tax," Maj Gen Patchara said.
The company is aiming for a 27% growth from this category this year, he added.
The fourth phase of the sugar tax is scheduled to take effect on April 1, according to the Excise Department.
Beverages with sugar content of between 6-8 grammes per 100 millilitres will incur an excise tax of 1 baht per litre, while those with 8-10g will be taxed at 3 baht per litre.
A tax of 5 baht per litre applies to those with sugar content exceeding 10g per 100ml.
"The sugar tax has a significant impact on us," he noted.
Maj Gen Patchara said that while some manufacturers may reformulate their beverages to reduce sugar content in response to the tax, Haadthip must collaborate closely with Coca-Cola's headquarters to maintain taste standards worldwide.
Despite the challenges posed by the sugar tax and high raw materials costs including packaging, he said the company would strive to keep product prices stable for as long as possible.
Tourism recovery is critical to driving sales and he anticipates that around 20% of its customer base are holidaymakers.
The company targets a revenue growth of 5-7%, with projected sales reaching 8.7 billion baht this year.
Haadthip set sales targets of 11 billion baht by 2027 and 15 billion baht by 2032.
The company plans to achieve this growth by increasing its market share in sparkling beverages to over 80%, up from 78.3% in 2024.
Additionally, Haadthip is looking to diversify its offerings by entering new product categories and expanding its current range of still beverages, which includes juice, drinking water and tea.