Logo of Phnom Penh Post newspaper Phnom Penh Post - Red Bull inventor to invest over $141M in China over three years

Red Bull inventor to invest over $141M in China over three years

Content image - Phnom Penh Post
Saravoot Yoovidhya, CEO of TCP Group. TCP Group

Red Bull inventor to invest over $141M in China over three years

Thailand's TCP Group, which owns the popular energy drink brand Red Bull, will invest more than one billion yuan ($141 million) in the Chinese market over the next three years despite challenges from the Covid-19 pandemic.

Its CEO Saravoot Yoovidhya said TCP will build a new manufacturing plant in Beijing’s Huairou district, which is set to be opened next year.

“China is our top foreign investment destination because we can clearly see the way the country continues moving forward under any circumstances,” he said, adding that he is “still confident about making additional investments.

“China’s efforts in combating and overcoming the Covid-19 outbreak are impressive. Not all countries were able to overcome such adversity in such an efficient way. That is why we are confident in the direction of the government and are even more excited to come back to the country,” he said.

Red Bull, as one of the world’s largest energy drink brands, has expanded its business to over 160 countries and regions globally. It entered China in 1993.

Saravoot said: “Over the past decade, one of the most impressive changes is that Chinese authorities as well as businesses and local communities have made big efforts in strengthening intellectual property protection.”

He said that such a business environment means a lot to foreign companies as they will feel safe and confident that their brands and technologies are protected and secure, which he believes is “the heart of any innovation society”.

To further localise their business in the country, Saravoot said TCP also plans to set up a new company with local employees to further meet the appetite of the increasingly diversified demand from local consumers.

The past years have witnessed the rapid development of China’s energy drink market. Last year, total sales of energy drinks were about 54 billion yuan, up 10.3 per cent on a yearly basis.

Independent food and beverage analyst Zhu Danpeng said: “The country’s energy drink market has boomed in recent years mainly because more people are pursuing a healthy, high-quality life.”

Zhu said the trend has become more obvious since the epidemic as more consumers are aware of the importance of improving the immune system and strengthening their health.

Saravoot said: “By setting up the new base, TCP hopes to better enhance its marketing and research and development capabilities by better understanding the needs, habits, and preferences of Chinese consumers and to develop products to better meet their particular needs.”

He added that he was hopeful of creating something in China and then introducing it to the world.

In China, TCP has partnered with two local companies – Guangzhou Yao Energy Co Ltd and Pusheng Food Sales Co Ltd to launch two new Red Bull products.

Saravoot said: “Our investment will further strengthen this strategic partnership and we will work closely with our local partners to ensure that our business continues to play a small but important role in supporting the development of the entire Chinese beverage industry.”

CHINA DAILY/ANN

MOST VIEWED

  • ‘Education’ a priority traffic-law penalty

    A top National Police official on June 21 neither rejected nor confirmed the authenticity of a leaked audio message, which has gone viral on social media, on a waiver of fines for a number of road traffic-related offences. General Him Yan, deputy National Police chief in

  • Siem Reap’s $18M zoo said to educate public, help wildlife

    Angkor Wildlife and Aquarium Co Ltd has invested $18 million in a zoo in Siem Reap province, which will be opened in October to educate and promote animal conservation as well as attract national and international tourists. Currently, the Angkor Wildlife and Aquarium is building the

  • Volunteer scheme to foster ‘virtuous’ humanitarian spirit

    A senior education official said volunteer work contributes to solidarity and promotes a virtuous humanitarian spirit among the youth and communities. Serei Chumneas, undersecretary of state at the Ministry of Education, Youth and Sport, made the comment during the opening of a training programme called “

  • Chinese firms unveil preliminary results on metro, monorail for capital

    Minister of Public Works and Transport Sun Chanthol and representatives from China Road and Bridge Corp (CRBC) and its parent company, the state-owned China Communications Construction Co Ltd (CCCC), met on June 24 for talks on results of the firms’ preliminary study on a potential metro

  • Nestle’s debut may spur dairy market

    Leading confectionery manufacturer Nestle plans to invest in Cambodia by setting up an operation in the near future, a move majorly hailed by local dairy farmers as a means of boosting the fresh milk market in the Kingdom. During a visit by a delegation led

  • ACLEDA, WU to enable global money transfers

    Cambodia's largest commercial bank by total assets ACLEDA Bank Plc and global money transfer firm Western Union (WU) have partnered to offer customers cross-border money transfers to 200 countries via “ACLEDA mobile” app. In Channy, president and group managing director of ACLEDA, said the June 22 agreement