Workers inspect cans of Extra energy drink at the Loi Hein factory in Mingalardon township, Yangon. Extra will be exported to India in a new slim can. Pic: Aung Tun Win

A CIGARETTE and beverage maker’s plans to export drinking water to Australia have been delayed because the introduction of a new bottle design was taking longer than expected, the company said last week.

Loi Hein Co., Ltd chairman Dr Sai Sam Htun said the company had hoped to start exporting its Alpine drinking water in June and had opened a branch office in Perth on Australia’s west coast.

“Customers want 0.6-litre, round-shaped bottles,” Dr Sai Sam Htun said. “The reason for the delay is that we’ve had to adjust our mould and do some fine-tuning to get details the way we want, such as the shape of the cap, the bottle and the label.”

The company currently sells 0.6-litre bottles in the local market although bottles for export will be a different design. The new moulds are hoped to be ready by the end of September.

“We expect that by the end of October we’ll be able to export two containers, holding 27,000 bottles each,” Dr Sai Sam Htun said.

He said a “friend” in Australia would help him distribute the bottled water. The associate, who he declined to identify, currently distributes engine oil to petrol stations across Australia, Dr Sai Sam Htun said.

Loi Hein Co. will initially focus on expanding its products as widely as possible in Australia without expecting immediate profits from the new market, the chairman said.

Alpine drinking water was approved in June by Australian food safety authorities for distribution throughout the country, he added.

Dr Sai Sam Htun in March said the company was aiming to eventually ship about 20 containers – some 400,000 bottles – a month.

Energy drinks in India

In another major expansion for Loi Hein Co., the maker of Mandalay Beer is working to export its Extra energy drink to India.

Released on the local market in January 2006, Extra comes in a 250ml can and has no major competitors in India other than the ubiquitous Red Bull, according to Hiew Sin Keong, Loi Hein Co.’s operations director.

“We’re waiting for our trademark registration to come through from India’s trademark office,” said Hiew, who envisages exports of the caffeine-free beverage (it contains taurine and nicotinamide) to start “in the near future”.

“We plan to export to India because it is such a big potential market for energy drinks. There are no other competitive brands there apart from Red Bull and Extra will be a very competitive brand with a 250ml slim can.”

Loi Hein already exports its Fantasy range of soft drinks to Bangladesh and will be starting a new factory in Shwe Pyi Thar township to handle the increased production once Extra and Alpine water start heading overseas.

“We’re hoping to get the factory running in the 2008 peak season (around April).

“The machines have been ready at the factory since early 2007, and we’re also planning to launch a new brand of soft drink,” Hiew said, adding that the new carbonated drink was not yet named and flavours were still undecided but would likely include orange, lime and mango.

The new factory is designed to produce 800 items – 200 glass bottles, 300 plastic bottles and 300 cans – per minute, Hiew said.

This will come on top of output from Loi Hein’s Htauk-Kyant factory in Mingalardon township, Yangon, which can turn out 10,000 one-litre and 12,000 0.6-litre bottles an hour.

Currently running 7-8 hours a day, Hiew said the company hoped to have the plant running 24 hours a day once exports were in full swing.

The Htauk-Kyant factory can produce 300 cans of Extra per minute, which Hiew said were at the moment more likely to be consumed in Mandalay than Yangon, where the company’s more expensive Shark energy drink is proving the more popular.

“I think this is because of the taste difference – Extra is sweeter than Shark,” Hiew said.

Loi Hein currently sells Extra for K6100 per 24-can slab, while Shark costs K12,000 for 24 cans, also 250ml each.

Meanwhile, the company in March this year signed a five-year contract to make Green Spot juice drinks in Myanmar. Dr Sai Sam Htun said he believes the move will pay off as more consumers opt for healthier beverages.