Spritzer banks on strong branding to grow market share

TheStar Mon, Nov 23, 2020 07:30am - 3 months ago


Group managing director Datuk Lim Kok Boon (pic) told StarBiz that the company’s market share of about 40% could grow further due to its strong branding and aggressive market penetration plan.

GEORGE TOWN: Spritzer Bhd aims to grow its market share in the country to about 70% in five years from 40% now.

Group managing director Datuk Lim Kok Boon told StarBiz that the company’s market share of about 40% could grow further due to its strong branding and aggressive market penetration plan.

He said the overall consumption of bottled water would also grow due to the growing population in the country and the rising awareness for safe drinking water.

He said that in South-East Asia, the bottled water industry is expected to grow at a compounded annual growth rate of 11.39% during the period 2020-2025.

”Once Malaysia lifts the movement control order and reopens its borders, we will introduce new products such as carbonated and functional drinks to grow our domestic market share.

“We expect both the demand from tourists and the local market to increase sales. We will aggressively pursue plans to grow our online business, focusing on the home/office delivery segment, ” he said.

Spritzer bottling plantSpritzer bottling plant

Lim said the company also has strategies to expand its presence in Singapore, Brunei, Hong Kong and China.

He said its findings indicated that imported brands are well accepted in these countries due to the quality and packaging of the products.

“Since Spritzer is an established brand in the region, we have a strong chance to grow in these countries.

“We intend to increase the export contribution to 15% from 7% currently by 2025, ” Lim added.

Presently, the company’s export sales to Brunei, Singapore, China, Hong Kong and other countries contribute about 7% of its yearly revenue.

“This is an achievable figure once tourism activities are allowed to operate without any hindrances in the region, ” Lim said.

On Spritzer’s performance for 2020, Lim expected a contraction from a year ago.

”However, the results of our third quarter are expected to improve over the preceding second quarter. The water crisis in the Klang Valley helped to boost our results for the third quarter, ” he said.






Related Stocks

SPRITZER 1.960

Comments

Login to comment.