Yee Lee, TCP aim to have 60% share of energy drinks market

KUALA LUMPUR (May 9): Yee Lee Corp Bhd and Thailand's TCP Group have strengthened their collaboration to boost market share in the energy drinks sector to 60% in five years via a Red Bull brand reinforcement. 

TCP chief executive officer Saravoot Yoovidhya said Red Bull has a 51.3% market share moving annual target (MAT) within the energy drink category in Malaysia as of March 2023 based on NielsenIQ (NIQ) Retail Index report.

According to current market data and category forecast, the revenue in energy drinks segment in Malaysia is expected to reach RM500 million by 2027, he told reporters at the partnership announcement ceremony here today (May 9). 

The market is expected to have a compounded annual growth rate (CAGR) of 7% between 2023 and 2027, he said.

"There are ample opportunities to grow in Malaysia looking at the relatively low consumption of energy drinks per capita. 

"We are also confident about Yee Lee's ability to grow the Red Bull brand in Malaysia," he said.

TCP will set up a dedicated office here with marketing experts to analyse and understand domestic consumer trends in order to strategise to boost sales, he said.

He also reckoned there would be possibilities to bring in other beverage brands. 

On inflation affecting sales, Yee Lee Corp Bhd group managing director Lim Ee Young said the price of Red Bull has not risen since before the Covid-19 pandemic. 

"We are trying as much as we could to keep the price accessible to the consumer because everybody is in the same situation," Lim said. 

He said efficiency has enabled Yee Lee to pass cost savings to customers.

"We want our market to understand that Red Bull is here to stay and grow in tandem with the positive outlook of the energy drinks space,” he said, adding that the group has been distributing Red Bull products in Malaysia since 2015.