COLA WAR A SIGN OF EF­FER­VES­CENT MAR­KET

Business Advantage Papua New Guinea - - Manufacturing -

As a de­vel­op­ing mar­ket, Pa­pua New Guinea presents new mar­ket­ing op­por­tu­ni­ties—in bev­er­ages, for in­stance. Ac­cord­ing to Chey Scov­ell of the Man­u­fac­tur­ers Coun­cil of PNG, Pa­pua New Guinea’s re­tail bev­er­age mar­ket re­mains pos­i­tive. ‘We’ve got a pop­u­la­tion of 7.5 mil­lion and the re­al­ity is that we are still only get­ting regular sales into a mi­nor­ity of the coun­try. I think PNG is one of the largest un­tapped mar­kets in the de­vel­op­ing world. ‘Hav­ing the bulk of the pop­u­la­tion ac­cess to man­u­fac­tured goods in su­per­mar­kets, for in­stance, rep­re­sents a ma­jor chal­lenge.’ The newly ap­pointed Gen­eral Manager of Coca-cola Amatil, Somu Bhat­tacharya, de­scribes the PNG op­er­at­ing en­vi­ron­ment as ‘high cost, with poor in­fra­struc­ture and low ef­fi­ciency’, but is op­ti­mistic about 2015. He says the bev­er­age mar­ket is com­pet­i­tive, with two lo­cally-owned sup­pli­ers, Par­adise Foods (which launched Pepsi un­der li­cence in PNG in 2014) and Pa­cific In­dus­tries (which pro­duces its own Gogo Cola and other bev­er­ages in Rabaul in East New Bri­tain Prov­ince). Bhat­tacharya notes, how­ever, that all lo­cal man­u­fac­tur­ers are also fac­ing stiffer com­pe­ti­tion from cheaper im­ports. ‘Cheaper im­ports vi­o­late the law of land in terms of dec­la­ra­tions to safe­guard con­sumer in­ter­est. There is also a loss to the na­tional ex­che­quer as well.’

‘I think PNG is one of the largest un­tapped mar­kets in the de­vel­op­ing world. ‘

The bev­er­ages mar­ket in PNG has re­mained strong, with lo­cal and im­ported brands com­pet­ing side by side.

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