Coke wants soda taken off price list

During the meeting of the US-Asean Business Council with Deputy Commerce Minister Alongkorn Ponlaboot in Washington, Coca-Cola's representative said the company faced lower income due to the price-control policy.

Michael Goltzman, Coca-Cola's director of international relations, said the company wanted to see a break in this policy as the government should not categorise soda among necessary items and control its price.

"Coca-Cola has also joined hands with Pepsi, another leading beverage company, to seek clarification as both firms face exactly the same problem," said Goltzman. He added that the price-control list had not only depressed sales of Coca-Cola in the Thai market, but also affected the competitiveness of the Thai market when compared with neighbouring countries.

Coca-Cola expects sales growth of 7 per cent in Thailand this year, and 10-per-cent growth next year.

However, Goltzman said the price-control list was affecting growth. He said the government should find other ways to help producers and added that the company was surprised why the government had categorised soda as essential goods when it should be treated as luxury goods, as people have a

choice whether to drink a soda beverage.

Alongkorn responded that the ministry would reconsider how to manage the price-control policy to minimise the effects on business. His adviser, an expert on issues related to sugar, is studying the case.

However, as one of the major production costs for soda drinks is sugar, which is under the Industry Ministry's sugar-cane price control, the ministry must cooperate with other agencies to find ways to optimise benefits for both cane farmers and manufacturers of different products.

He explained that the ministry has only 200 products on its watch list, including soda as it is consumed by many people. About 60 products are on its price-control lists. The government has not controlled the price of soda, but is only closely monitoring price changes.

However, according to a ministry source, any price changes to soda or other major products listed under its price control is subject to the Internal Trade Department's approval.

Meanwhile, the US-Asean Business Council said it wanted to see more stability in the Thai government, as well as clear policies to facilitate trade and investment in the Kingdom.

American businessmen have raised concerns over the stability and efficiency of the Thai government and its trade regulations, as it would affect their business plans during the economic slowdown.

Sarah Chambers, manager for Cambodia, Thailand, Burma, and Laos, said American businessmen have concerns over continuity in the policies of the government, as Thai governments always look good in the early months of their administration.

A chamber representative also questioned political stability and how the Abhisit Vejjajiva government would rebuild trust and the image of Thailand after the political turmoil and the closure of the airports last year.