Coca-Cola Thai bottler, PT Construction to form JV in Laos
ThaiNamthip, Coca-Cola's bottling partner in Thailand, and Laos-based PT Construction plan to form a joint venture (JV) and invest $40m over the next five years to bottle and distribute Coca-Cola beverages in Laos.
The new venture - Lao Coca-Cola Bottling - will distribute Coca-Cola, Fanta, Minute Maid, Namthip drinking water and Sprite.
Local PT Construction will own 30% of the JV, with the Bangkok-based Coca-Cola bottler holding 70%.
The move, part of the company's strategy to increase its presence across Southeast Asia, comes at a time when sales in China are declining.
Coca-Cola Pacific's communications director Sharolyn Choy said the JV will also set up a bottling facility with 70 employees in Vientiane province that will begin operations in 2014.
The new facility is expected to position the Atlanta- headquartered beverage giant to compete with New York-based PepsiCo.
ThaiNamthip has six bottling plants and distributes products in 63 provinces in Thailand.
PT Construction specializes in hydropower and infrastructure development.