Thailand’s tea giant Ichitan Group has chosen Indonesia for its first overseas expansion and will launch two green tea products there with the distinctive sweet flavors that have been so popular in its home market – where sales have lately slowed.
Ichitan’s Tan Passakornnatee, center with the sailor cap, is making Indonesia his first port of call overseas for his popular green teas.
Ichitan has a joint venture with Japanese trading house Mitsubishi Corp. and Indonesian retailer Sigmantara Alfindo for production and distribution of ready-to-drink tea and other Ichitan branded beverages.
“Indonesia is a similar market to Thailand,” said Tan Passakornnatee, CEO of Ichitan.
Ichitan products will initially be shipped from Thailand or sub-contracted to local manufacturers in Indonesia. If the market responds well, a factory will be built. Tan is looking to generate $313 million sales in his first new market.
Ichitan was established by Tan in 2010 and is already the largest ready-to-drink tea producer in Thailand with a market share of over 40%.
Ichitan hopes to generate 35% of its sales in Indonesia and spread its weight overseas. According to Tan, there are as yet no plans for the company to enter other foreign markets.
(Nikkei)
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