HomeEverythingEducationTV
Equities & FundsCrypto & Digital AssetsAI & TechnologyBusiness & CorporateUS Politics & PolicyGeopolitics & Global RiskMacro, Rates & FXCommodities & EnergyEuropean Politics & MarketsAsia-PacificReal Estate & Property
Story archiveAll categories
← All Stories

Suntory PepsiCo opens $300M factory in Vietnam, eyes healthier drinks

Created at 13 Jul · 6:21 AM1 source↑ Market-relevant
IN SHORT

Suntory PepsiCo has inaugurated its largest and most modern factory in Asia, a $300 million facility in Vietnam's Tay Ninh province. The investment signals a strategic shift towards healthier beverages amid slowing demand for traditional soft drinks.

✉Newsletter

PiQ Daily

Pick your topics. Get only what matters, on your cadence.

Key Numbers

$300 millionTotal investment in new factory
750 millionRevenue in first 9 months of 2024 (Vietnam)
511 millionRevenue in first 9 months of 2024 (Thailand)
350 millionRevenue in first 9 months of 2024 (Oceania)
796 million litersProjected initial production capacity
1.24 billion litersProjected expanded production capacity by 2028
120,000 cans per hourCanning line speed
84,000 bottles per hourPET line speed
15,000 square metersAutomated warehouse area
43,000 palletsAutomated warehouse capacity

Who's Involved

Suntory PepsiCo Vietnam Beverage Co. Ltd.
Joint venture opening largest factory in Asia
Josuke Kimura
President and CEO of Suntory Beverage & Food
Suntory
Japanese partner in the joint venture
PepsiCo
US partner in the joint venture
Suntory PepsiCo opens $300M factory in Vietnam, eyes healthier drinks

↳ Why This Matters

This investment highlights Vietnam's growing importance as a manufacturing hub and a key market for consumer goods, particularly in the beverage sector. It signals Suntory PepsiCo's strategic pivot towards healthier products and sustainable practices, reflecting evolving consumer preferences across Asia.

Key facts

  • Suntory PepsiCo has opened its largest factory in Asia in Tay Ninh, Vietnam.
  • The new facility represents an investment of approximately $300 million.
  • The factory is equipped with advanced automation and intelligent production systems.
  • It is designed to produce beverages using 100% recycled plastic (rPET) packaging.
  • The plant includes Suntory PepsiCo's first fully automated warehouse in the Asian region.

Suntory PepsiCo has inaugurated its largest and most modern factory in Asia, located in Tay Ninh province, Vietnam, with a total investment of approximately $300 million. This significant investment underscores the company's strategic focus on Vietnam as its most important market in the Asia Pacific region, excluding Japan, and its commitment to meeting the growing demand for healthier beverages.

The new facility is Suntory PepsiCo's sixth in Vietnam and is designed to enhance production capacity while integrating advanced automation, digital technology, and intelligent production systems. The factory boasts high-speed canning and PET bottling lines, capable of producing up to 120,000 cans and 84,000 bottles per hour, respectively. It also features the company's first fully automated warehouse in Asia, spanning 15,000 square meters with a capacity of 43,000 pallets.

Furthermore, the plant is equipped to manufacture products using 100% recycled plastic (rPET) packaging, aligning with Suntory PepsiCo's commitment to the circular economy and sustainable packaging solutions. The facility is also set to be powered by renewable energy sources, including biomass and solar power.

Suntory attributes its strong revenue growth in Vietnam to its soft drink portfolio, which includes brands like Pepsi, Aquafina, 7 Up, Mirinda, Gatorade, and Lipton. The company's investment in Vietnam reflects a broader trend of shifting consumer tastes towards healthier options, even as traditional soft drink consumption slows. This move positions Suntory PepsiCo to better serve consumers with innovation and scale, potentially serving the wider region from its Vietnamese base.

Frequently asked questions

The total investment in the new factory is approximately $300 million USD.

The factory is located in Huu Thanh Industrial Park, Tay Ninh province, Vietnam.

It is the largest and most modern project in the Asia-Pacific region for Suntory PepsiCo, featuring advanced automation, a fully automated warehouse, and significant production capacity.

The company is focusing on meeting the rising demand for healthier beverages and strengthening its commitment to sustainability and the circular economy.

What Happens Next

01The factory's production capacity is projected to expand to 1.24 billion liters by 2028.
02Suntory will relocate four of its production lines from Ho Chi Minh City to the new Long An facility.

Get the newsletter.

Pick the topics you actually care about. We'll email when there's news worth your time, on the cadence you choose. Cancel any time from your account.

Cadence

How It Developed

Suntory PepsiCo opened its largest factory in Asia in Tay Ninh, Vietnam.
The new facility represents a $300 million investment.
The factory is designed to meet rising demand for healthier beverages.
It features advanced automation and is powered by renewable energy.
The plant includes Suntory PepsiCo's first fully automated warehouse in Asia.

Sources

T1
Suntory PepsiCo opens biggest Asian factory amid shift from sodaNikkei Asia
T2
Suntory positions Vietnam as its most important investment location in ...asiafoodbeverages.com
T2
Suntory PepsiCo Factory - Lim Kim Hai Vietnamlimkimhai.com.vn
T2
SuntoryPepsico inaugurates its $300 million, world-class factory.vietnam.vn

Related Stories

JTB bets on inbound business travel boom
13 Jul · 2:16 AM
Nippon Paint offers $8.6bn for AkzoNobel decorative paints unit
13 Jul · 4:41 AM
Associated British Foods to merge Hovis with Allied Bakeries to challenge Warburtons
12 Jul · 12:56 PM
ME Group expands into dog wash machines amid profit recovery efforts
13 Jul · 6:56 AM
Filipino workers protest TaiDoc over alleged union busting
13 Jul · 1:51 AM