Power Root Berhad (Power Root), a beverage company in Malaysia, has signed a co-investment agreement with Thailand’s Sappe Public Company Limited (Sappe) to bring the nata de coco drink, Mogu Mogu, into the country. Sappe, on the other hand, shall produce, market, and distribute instant coffee products under one of Power Root’s premixed coffee brands called Frenche Roast In Thailand.
The initial investment amount required for the co-investment is approximately USD582,500 of which Power Root is to contribute up USD349,500 (approximately RM1.57 million) and Sappe is to contribute the remaining USD233,000 (approximately RM1.05 million). The funds raised is to be used as working capital.
Sappe PCL is one of Southeast Asia’s top beverage companies listed on the Stock Exchange of Thailand (SET) and has a market capitalisation of more than US$700 million (about RM3.2 billion). Due to its strong business performance, Sappe was listed as one of Forbes Asia’s Best Under A Billion companies for Thailand in 2022.
One of Sappe’s best-selling brands is Mogu Mogu. With its unique taste and texture, the brand has achieved success in 90 countries worldwide, selling 11 million bottles in the UK alone last year.
The collaboration between Power Root and Sappe provides a unique opportunity for the latter to extend its Mogu Mogu brand presence into Malaysia by leveraging on Power Root’s marketing and distribution strength to tap into the local market.
Power Root Co-Chairman Y.A.D Tengku Dato’ Setia Putra Alhaj Tengku Azman Shah Alhaj said, “Power Root’s products can also be found in over 40 countries. More than 40% of our company’s revenue now come from overseas.”
“This wonderful partnership between Power Root of Malaysia and Sappe of Thailand is an example of how we should work with each other. As we leverage on each other’s branding, marketing and distribution capabilities, our companies are also helping to achieve the Malaysian and Thai governments’ bilateral trade target of US$30 billion by 2025,” he added.
With regards to Frenche Roast, Sappe CEO Piyajit Ruckariyapong said the home consumption value of the coffee market in Thailand is over RM4.4 billion, with 3 in 1 coffee making up RM2.1 billion of the market share. Hence there is great opportunity for Power Root in Thailand. Sappe covers over 100,000 points of sale in Thailand including modern trade, traditional trade and more, a strong leverage that Power Root can benefit from.
The highlight of this partnership is the appointment of rising Korean music sensation Jang Han Byul as the official ambassador for Mogu Mogu.
” As a brand that has become synonymous with South Korean K-pop group BTS, Mogu Mogu holds a strong appeal among consumers throughout Asia. Likewise, we are thrilled to announce Jang Han Byul as the ambassador for the Mogu Mogu brand in Malaysia,” said Tengku Dato’ Setia Putra Alhaj.
“His immense talent and popularity make him the perfect partner to represent Mogu Mogu and introduce our delightful range of beverages to a wider audience. With Han Byul, we are confident that the Mogu Mogu brand will flourish and captivate the hearts of Malaysians.”
Mogu Mogu, which is renowned for its innovative and refreshing fruit juice with nata de coco, has already garnered loyal followers around the globe. With Han Byul on board, Power Root wants to elevate the brand’s presence locally to new heights with the singer’s widespread appeal and credibility.
In an exciting parallel development, Power Root has also enlisted chart-topping Malaysian singer Khai Bahar as the face for its flagship AliCafe coffee brand.
Renowned for its convenience in powder and ready-to-drink formats, AliCafe has a devoted following among coffee aficionados throughout Malaysia as well as overseas. Power Root wants to further elevate the brand’s position in Malaysia with Khai Bahar’s ability to engage with a broader audience.