Thai Bev to use S'pore IPO as sales launch pad

Thai Beverages Plc, a local brewer and distiller, plans to pour up a major sales push in Southeast Asia after listing on Singapore's stock exchange, scheduled for May 30.
Thapana Siriwattanabhakdi, executive vice president of the Kingdom's largest alcoholic beverage maker, said the company planned to pay more attention to exports of its alcohol products. In the domestic market, the company controls 70 per cent of the white whisky segment, 63-65 per cent of the whisky segment and 60 per cent of the beer segment. The domestic market accounts for 99 per cent of its sales. "Though sales from exports are less than 10 per cent, Thai Beverages plans to become a leader in the beverage market in the region," Thapana said. Its existing export markets include some countries in Southeast Asia, where its SaengSom and Mae Khong whisky brands are well recognised. The company plans to build up exports of its other brands including Chang Beer, Chang Draft and Chang Lite beers with marketing activities suited to each brand and market. In Southeast Asia, the Philippines is considered to be the largest market for alcoholic beverages. But Thai Beverages would face a formidable competitor - San Miguel, a state enterprise, which is not only the largest manufacturer in that country but also in the whole region. Other big rivals are from Vietnam as well as Western countries, such as Carlsberg. Thai Beverages aims to become a major regional player in the future as it sees the atmosphere abroad as more liberalised, while growth prospects in the domestic market are dimmed by thickening competition from many new entrants and the government's unclear restrictions. Thapana, however, said the recent tax hike on alcoholic beverages won't affect the market here in the long term. He estimates the domestic market would grow 1-2 per cent this year. The beer segment worth Bt82 billion, however, seems to have brighter potential than the Bt50-billion spirits segment, as whisky drinkers are more likely to switch to beer with its lower alcohol content.
Nitida Asawanipont The Nation
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