“It’s important to find the right partner with the same vision,” said Thanh, 66, who runs the corporate along with his two daughters. “We don’t need money. We are looking for industry specialists so that we can develop together.”
THP’s Zero Degree green tea has catapulted it to the highest of Vietnam’s bottled tea market, surpassing Coca-Cola and PepsiCo tea sales within the country. The program is succeeding as more of the country’s 96 million individuals are middle-class consumers and advantages from a younger generation of health-conscious consumers preferring teas and natural beverages.
The company also produces an energy drink that it says is more suited to Vietnamese and Asian tastes – it’s less sweet and still comprises a dose of caffeine. It hopes to penetrate deeply into Asia with its drinks, together with its teas, to compete with Red Bull GmbH in Asia.
THP is Vietnam’s largest domestic soft drink producer, second only to the three way partnership between PepsiCo and Suntory Holdings. However, its presence in Southeast Asia continues to be small. According to research firm Euromonitor International, around 510 million liters of drinks were sold last 12 months.
Thanh says THP may very well be value as much as $5 billion as sales are expected to double to $1 billion in the subsequent five years. Any strategic partner – with distribution or industry knowledge, reasonably than a personal equity investor – should ideally be willing to speculate not less than $2 billion to $3 billion for the corporate to grow in Asia and all over the world, he said.
THP, which currently distributes products in 16 countries, can also be considering acquiring smaller beverage producers in countries with established tea markets resembling Thailand and Taiwan, said deputy general manager Tran Uyen Phuong, who shares the title together with her sister Tran Ngoc Bich. She said that THP is willing to spend as much as $50 million on such an investment.
A Vietnamese family-owned beverage company that rejected Coca-Cola’s offer
A Vietnamese family-owned beverage company that rejected Coca-Cola’s offer
“After discussions, we realized we had different visions,” Thanh said. “We needed a partner who would be able to support THP’s development and grow faster together. Money was not the deciding factor. There is nothing to regret.”
Competition with the Giants
The company plans to spend one other $500 million to finish construction of its factories over the subsequent three years. THP also entered the actual estate market, acquiring land within the southern and central regions of Vietnam. Its development arm will invest $300 million to construct a riverside residential complex in Da Nang, a resort town known for its white, sandy beaches.
The story of the world’s hottest energy drink: how Thailand created Red Bull
The story of the world’s hottest energy drink: how Thailand created Red Bull
Thanh said he has no plans to retire anytime soon but is targeted on finding a successor. For now, he takes care of his two daughters, but he insists that he can also be open to a talented director who just isn’t a member of the family.
“The successor must be the right person in the right role,” Thanh said. “If my daughters aren’t as capable as another person, they do not have to be CEO. If they will develop into CEOs, that is higher. But if they cannot, it isn’t a giant deal.”
