Thailand: Major manufacturers to raise liquor and beer prices

Thailand’s major manufacturers and distributors of liquor and beer have notified trade partners that they will raise prices of selected products from next week, said an informed source on February 22, The Nation reports.

From next month, the price of rice whisky will rise by Bt120 per case of small bottles – from Bt1,242 to Bt1,362 – and by Bt54 per case of large bottles, from Bt1,158 to Bt1,212, said the source. “The price of beer will also go up by Bt2-4 per can, or Bt48 per case of large bottles [from Bt805 to Bt853],” the source added.

However, the Excise Department said on February 22 that no manufacturers have notified the department of prices rises. The law requires that manufacturers give notice if they intend to raise the price by more than five per cent of the level suggested by the department.

The department insisted that the government had no policy to increase tax on alcoholic beverages, so any price hike must be due to other reasons.

Krungthep Turakij newspaper on February 22 surveyed alcohol retailers in Chiang Mai’s Saraphi district and found that though prices were still the same, most shops anticipate rises after March 1.

“Small retailers will be severely affected as they don’t have enough money to stock up before the price hike,” said Kanpaphot Utcharoen, owner of a liquor shop in Chiang Mai. He said that after the price hike kicks, the shops would suffer from decreased sales as customers bought less alcohol.

He urged the government to reduce restrictions on the alcohol industry to allow the entry of new, smaller manufacturers, and promote competition with large manufacturers. “This would eventually result in more affordable prices for alcoholic drinks and generate income for local entrepreneurs,” he added.

The Cabinet is currently reviewing a draft liquor bill that would lower entry barriers for smaller brewers to an industry that has long been dominated by giant multinationals.

23 February, 2022