Tall Measure for Thai Beverage: Foreign Markets New Target
By Bamrung Amnatcharoenrit, Bangkok Post, Thailand
May 18–Thai Beverage Plc (ThaiBev), Thailand’s biggest alcohol producer, is looking for foreign markets to expand in the hope of overtaking the Philippines’ San Miguel as the market leader in Southeast Asia.
ThaiBev has not set a timescale, but foreign markets hold a lot of potential for the firm even as the company faces rising barriers to growth in the Thai market, vice-president Thapana Sirivadhanabhakdi said.
They included government tax-collection changes, which have led to an increase in product prices, and tighter advertising rules on alcoholic beverages.
Under the expansion plan, the company plans to push not just Chang beer, but also Mekhong and Sangsom rum in the region. Vietnam and the Philippines are among its target markets.
ThaiBev’s whisky, Sangsom, has proved popular in neighbouring countries, while Mekhong is well-known in Japan.
Mr Thapana said about 65 million litres of Sangsom were sold each year, mainly in Thailand. Foreign consumption contributes to less than 10 percent of the total.
ThaiBev yesterday launched a new TV commercial presented by Thailand’s award-winning conductor, Bundit Ungrangsee, to boost its world-class image.
Mr Thapana said the firm was making an effort to boost 60-year-old Mekhong’s image and promote it in cocktails to expand its customer base.
The expansion plans follow a petition to list on the Singapore Stock Exchange, which will raise funds for future growth.
According to the filing with the Monetary Authority of Singapore, the company was expected to list on May 30 following a public float of 4.88 billion shares.
The initial price range has been set at between S$0.26 and S$0.36 (6.25 to 8.65 baht) per share, with the final price to be determined on Wednesday.
It is expected to be around S$0.31 (7.45 baht) per share.
If all of the shares are subscribed, the IPO could raise 36.4 billion baht.Last year, the company posted a net profit of US$255.5 million on total sales of $2.24 billion.
Of the total sales, $1.02 billion came from its beer brands, including Chang and Archa, plus bottled water, and $1.21 billion from spirits, including Sangsom, Mekhong and Mungkorn Thong.
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