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[george]

Beer competition in 2010 a sobering challenge

Foreign beer market opens up in Thailand on
Jan 1, 2010

BANGKOK: -- Thai Beverage, manufacturer of Chang beer, expects to face big challenges amid fiercer competition in the beer market next year.

The Asean Free Trade Agreement, which will eliminate tariffs on beer imported from fellow Asean members from next January 1, will afford foreign brews easier access to the Thai market.

Chang also plans to regain market leadership within two years through an aggressive marketing campaign featuring sports and music activities.

Thai Beverage Marketing deputy managing director Charlie Jitcharoongphorn yesterday said some serious competition was expected in the beer market next year, but that the company was formulating a marketing strategy to meet it.

ThaiBev has earmarked Bt100 million for sports and music activities and produced a Chang television commercial for its "Khon Thai Huajai Deaw Khun" campaign, to air for six months starting today.

Charlie said this was ThaiBev's first step towards overcoming the competition.

Chang lost its leadership to Singha beer two years ago. Singha Co recently said its beer brands - Singh and Leo - enjoyed a combined market share of 60 per cent. Charlie said ThaiBev's Chang, Federbrau and Archa controlled the rest of the market.

The company has targeted a 5-percentage-point increase in its market share by the end of next year.

The economy-beer segment, which represents 80 per cent of the Bt100-billion beer market, is expected to grow 4-5 per cent next year. Sales of Chang have so far showed flat year-on-year growth in that market.

Charlie said Chang's "Khon Thai Huajai Deaw Khun" campaign was aimed at supporting the revolutionary new look of Chang beer products, with Chang Classic, Chang Draught and Chang Light given a clearer image.

The company expects 80 per cent of Chang drinkers to learn about the campaign within a month through different media channels - billboards, television and radio commercials and print and online media.

Chang will also organise 1,000 concerts and other musical performances at various venues next year.


-- The Nation 2009-11-12

[h90]

I have a dream: "Bin Tang" (spelling??) in Thailand.

[manjara]

Ok, so Tiger Beer should be cheaper...
What other brands will be coming in?

[george]

Carlsberg?

[JatujakShopper]

Finally, some GOOD NEWS! Make mine a Beer Laos, thanks, currently only available in some bars (not that I mind bars, but would like to see it in Carrefour)!

Of the current local product I find Leo and Archa drinkable, as opposed to their respective companies' flagship brands Singha and Chang which are both supremely awful. Variety is the spice of life!

PS- Bring back Mittweida!!!!!

Edited by JatujakShopper, 2009-11-12 12:47:51.

[DeathbyDurian]

Beer Lao at 7/11? Sweet!

[eljeque]

Instead of a marketing campain, maybe make the beer better.

Thai companies do not like competition.

Are there many European beer manufacturers  with breweries in Malay or Singapore which would then sell their beer here?

[wombat]

h90, on 2009-11-12 12:35:13, said:

I have a dream: "Bin Tang" (spelling??) in Thailand.

Bin Tang (Indonesia) = Heineken

thank the Dutch for that one.

[piewarmer]

Is Carlsberg made in an ASEAN country??   hmmm.
Aussie beers will qualify. will they include spirits later????

[kuffki]

manjara, on 2009-11-12 12:40:37, said:

Ok, so Tiger Beer should be cheaper...
What other brands will be coming in?

Beers being from ASEAN member country's- which means from Singapore if they make any and Australia which has 2 major company's while each one has over 5-10 different beers.

• Crown Lager
  
• Coopers
  
• Boags Premium
  
• Victoria Bitter
  
• Melbourne Bitter
  

• Tooheys             New

              

  Tooheys             Old

              

  Tooheys             Extra Dry

              

  Full             Sail

              

  Squires             Range

              

  Sydney             Lager

                             Bluebottle
  

• Cascade       Premium

        

  Coopers       Premium Ale

              

  Crown             Lager

              

  Hahn             Premium

              

  Hemp             Premium

              

  James             Squire Range

        

  Matilda       Bay Premium

        

  Hahn             Vienna Red

        

  Hop             Thief

        

  Southwark       Premium

• Coopers DB
    Coopers Best Extra Stout
    Sheaf Stout
    Southwark Premium
    Coopers Regency Dra

and so on and on and on

[morfius]

Tiger Beer promotes rheumatism.  C'mon support the Sweet Chang... dontcha forget that sweet bottle did accompany you thru al'those times...  

And not to forget where you are standing/sitting...  So to all of y'all, pls Buy Thai... Kob khun mak krap...

On the $ side, you put $ into Thai product, goes into Thai company, paid to Thai employees, back into the Thai system, supporting the Kingdom of Thailand.  

[gr8fldanielle]

Bier Ha Noi would be nice. Maybe they don't want us to leave after all. This could be a great marketing strategy to increase tourism. What a great idea!  

[streetlite]

No Amstel Light?

[thykeeper]

Great news for drunks all around. Compared to beer prices in the US for similar pissy looking beers like beer chang the price here is outrageously high. A 7-11 worker in the US could afford to a buy one 6-pack (or more for dirt cheap beer) of various beer brands with quality comparable to beer chang per hour (~$8/hour). Compare that to a Thai 7-11 worker making 25/baht per hour can only buy ONE can of beer chang!! The US 7-11 employee is getting at *least* 6x drunker than in Thailand! Why is beer so much for this poor people?

[phildavid]

Burma's ABC Stout would work just fine.

Unless drinking it supports the junta. What a moral dilemma...

[laocowboy2]

manjara, on 2009-11-12 08:40:37, said:

Ok, so Tiger Beer should be cheaper...
What other brands will be coming in?

A two-part answer.

(1) At the higher end, perhaps quite a few. However they will be niche products given lack of distribution network and probable pricing points.

(2) The mass market is (by definition) what the common (Thai) man drinks as that is where the volumes are. Even Singha is seen as a premium brand by the common man - the preference is for budget products. Even Chang is generally pitched at a lower price point than Singha - and a few years ago the difference was even more marked.

What you find in the supermarket will therefore depend on who the customer base comprises. Thus in areas of BKK with a lot of upper middle class Thais and/or expats, a wider variety. In areas that are less affluent or purely Thai, a smaller selection is likely.

Final point. Volume beer sales always in the end depend on producing locally - even with a level playing field for imported brews the logistics costs mean either higher pricing or lower margins. Why sell (say) Samuel Adams at a THB5 mark up when you get THB7 or more on a lower priced Beer Chang?

[gvallee2]

pleased to be seeing chang's ceo sleeping in a cardbox on sukhumvit.

Bad product should = to business failing..
Welcome good beers. we're waiting.

[DickDastardly]

eljeque, on 2009-11-12 12:48:03, said:

Instead of a marketing campain, maybe make the beer better.

Agree completely, forget all this marketing crap, make decent beer, people will buy it.

[sedeflonga]

Finaly I get my Löwenbräu =)

Ever wondered which beer is really the best in Thailand (and Asia) without all those chemical additives?

Check this out http://beerasia.blog...label/Thai Beer

(worth a read, trust me =)

Edited by sedeflonga, 2009-11-12 13:07:36.

[h90]

eljeque, on 2009-11-12 12:48:03, said:

Instead of a marketing campain, maybe make the beer better.

Thai companies do not like competition.

Are there many European beer manufacturers  with breweries in Malay or Singapore which would then sell their beer here?

No company like competition, just in other countries you can't bribe the politicans so easily.

"make the beer better" you mean, taking some European specialist, clean the tanks, work to international standards????
No I guess that is out of discussion....not important, better make a marketing campain and hire some beautiful sales girls.

[bkkjames]

Thai Bev I believe has a market cap of about 300 Billion baht and more than 90 companies under the umbrella, don't think they will be going broke soon even if Beer Lao comes to town.

[bisou]

In fact, Australia is NOT a member of ASEAN, but it does have observer status at most ASEAN meetings. I doubt if this would qualify it to export beer to Thailand tariff-free.

Also, I didn't see anything in the article to suggest that non-ASEAN brands would be allowed in tariff free, even if they are brewed in an ASEAN country. I am sure that the Thai beer barons will ensure that all non-ASEAN brands do not qualify for tariff-free entry, so they only have to compete with Bin Tang and Tiger beers (which of course are much better than Thai beers anyway).

kuffki, on 2009-11-12 13:49:16, said:

manjara, on 2009-11-12 12:40:37, said:

Ok, so Tiger Beer should be cheaper...
What other brands will be coming in?

Beers being from ASEAN member country's- which means from Singapore if they make any and Australia which has 2 major company's while each one has over 5-10 different beers.

and so on and on and on

[transam]

Just hope we can get Beer Laos DARK in Thailand shops, wonderful beer, gives memories of some fine English real ales.

[cloudhopper]

Too bad Corona isn't made in ASEAN. Be nice to see cheaper San Miguel and Beer Lao around though...

[PattayaParent]

gr8fldanielle, on 2009-11-12 12:51:42, said:

Bier Ha Noi would be nice. Maybe they don't want us to leave after all. This could be a great marketing strategy to increase tourism. What a great idea!

Beer Ha Noi is like coloured water.

Halida is far superior.