Vietnamese tea maker that rejected Coca-Cola buyout seeks US$3 billion to rival Red Bull

Tan Hiep Phat Beverage Group, known as THP, is Vietnam’s top local non-alcoholic beverage maker, with products like Zero Degree Green Tea

The family company turned down a US$2.5 billion offer from Coca-Cola seven years ago, saying they had ‘different visions’

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Tan Hiep Phat Beverage Group (THP) founder Tran Qui Thanh and daughters Phuong Uyen Tran (L) and Tran Ngoc Bich at their office. Photo: Handout

Published: 5:00pm, 15 Oct 2019Updated: 4:36pm, 16 Oct 2019

Seven years after turning down a US$2.5 billion offer from Coca-Cola, Vietnam’s biggest home-grown beverage company is seeking a strategic partner that can invest US$3 billion to help make it the next Red Bull.

Tan Hiep Phat Beverage Group, known as THP locally, is open to mergers and acquisitions to become one of Asia’s top drinks makers, Tran Qui Thanh, the founder of the closely held business said. The company is looking to expand sales in neighbouring Southeast Asian countries, after spending US$500 million on three new factories at home, he said.

“It’s crucial to find the right partner with the same vision,” said Thanh, 66, who runs the firm with his two daughters. “We don’t need money. We are looking for industry expertise so we can develop together.”

THP’s Zero Degree Green Tea has propelled it to the top of Vietnam’s bottled tea market, outselling those from Coca-Cola and PepsiCo in the country. It is finding success as more of the nation’s 96 million people become middle-class consumers and is capitalising on a younger generation of health-conscious consumers who prefer teas and natural drinks.

THP founder Tran Qui Thanh and daughter Phuong Uyen Tran at their factory. Photo: Handout

The company also makes an energy drink that it says is more suitable for Vietnamese and Asian tastes – less sweeter while still packing the caffeine jolt. It’s hoping to use the drink to penetrate deeply in Asia, along with its teas, to rival Red Bull GmbH in Asia.

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Vietnamese tea maker that rejected Coca-Cola buyout seeks US$3 billion to rival Red Bull

Tan Hiep Phat Beverage Group, known as THP, is Vietnam’s top local non-alcoholic beverage maker, with products like Zero Degree Green Tea The family company turned down a US$2.5 billion offer from Coca-Cola seven years ago, saying they had ‘different visions’

Tan Hiep Phat Beverage Group, known as THP, is Vietnam’s top local non-alcoholic beverage maker, with products like Zero Degree Green Tea

The family company turned down a US$2.5 billion offer from Coca-Cola seven years ago, saying they had ‘different visions’