Pepsi starts ‘war’ with Coca-Cola
Boosted by considerable support among the country’s top police officers, Pepsi-Cola began distributing its soft drink in Thailand, sparking competition with strongly-entrenched Coca-Cola.
Pepsi was bottled by Sermsuk Company, a Thai company chaired by Thailand’s Deputy Police Chief, Pol Lt Gen Phinit Chonakhadi. Pepsi’s promoters included Phinit’s wife, Police Director-General Phao Sriyanond’s wife, plus the governor of Thai Railways, who apparently wanted to serve Pepsi on all Thai trains.
Coca-Cola, distributed in the country since 1949, retaliated against Pepsi’s entry by cutting their price to only one baht per bottle, compared to Pepsi’s price of 1.5 baht for a 10-ounce bottle.
Both companies were wrestling with cost increases, including more expensive prices for glass, sugar, transport and other items. Many restaurants and coffee shops, meanwhile, were offering American soft drinks alongside more traditional coffee, tea and fruit juice to refresh their customers. Pepsi also set up a bottling plant on Silom Road, which was designed to produce 75 million bottles a year.