VietNamNet Bridge - Tan Hiep Phat, an energy drink manufacturer, is believed to be a ver attractive company to investors, despite its notorious fly-in-a-bottle scandal.

Though there have been no updated reports about the ranking of drink manufacturers, analysts say manufacturers can be classified into two groups. 

The first group comprises leading companies – Suntory, PepsiCo, Tan Hiep Phat and Coca-Cola, while the second includes URC, Interfood-Kirin Wonderfarm, Tribeco, Lavie, Red Bull, Chuong Duong and Tan Quang Minh-Bidrico.

The direct rivals of Tan Hiep Phat in making energy drink and tea products are Suntory Pepsi-Co, Coca-Cola and URC, and all three are powerful international conglomerates.

Suntory Pepsi-Co, Tan Hiep Phat and Coca-Cola in the first group have been running after each other very closely. 

Though there have been no updated reports about the ranking of drink manufacturers, analysts say manufacturers can be classified into two groups.

When Tan Hiep Phat marketed Number One products in 2001 and gained the upper hand over its rivals – Red Bull, Rhino and Lipovitan - thanks to the low-price policy and strong distribution network, Coca-Cola reacted by launching Samurai, while PepsiCo launched Sting. 

However, the two multinational conglomerates could not defeat the Vietnamese Number One at that time. Only with Sting Dau product, could PepsiCo pull Number One to the second position.

As its Number One fell into the second position, Tan Hiep Phat marketed a new product Tra Xanh Khong Do (green tea) in 2006 and won great success. 

PepsiCo then ‘replied’ promptly by launching Lipton Pure Green, while Coca-Cola launched Tea Leaf into the market, but could not shake Tra Xanh Khong Do’s first position.

In the midst of the victory, Tan Hiep Phat introduced Dr. Thanh, a tea product made of herbs in 2008.

Most recently, PepsiCo marketed Oo Long Tea Plus, while Tan Hiep Phat marketed Oo Long Linh Chi. 

While the turnover of PepsiCo and Tan Hiep Phat is estimated at VND10 trillion, Coca-Cola’s is just equal to 50 percent.

Tan Hiep Phat also has competed fiercely with a rival from the second group – URC, the manufacturer from the Philippines which owns the C2 brand. 

A source said URC’s turnover in 2014 was approximately VND5 trillion, or nearly equal to Coca-Cola’s, but its profit was double (VND357 billion).

The current face of the market shows that any cooperation deals to be made by any of Suntory PepsiCo, Coca-Cola and URC with Tan Hiep Phat would be able to lead to big changes in the Vietnam’s drink industry.

So, who will be the buyer, Suntory PepsiCo, Coca-Cola, URC, or Interfood, an ‘unknown’?

A branding expert commented that international groups would be reluctant to invest in a company which had scandals in the past, but Tan Hiep Phat, at this moment, remains a powerful and worthy investment.


NCDT