E-Malt.com News article: Thailand: With zero import duties, more foreign beers may be available next year though the local market shows no growth

The importer of Corona beer from Mexico is negotiating with other international brewers to bring their products to Thailand next year now that import duties under the Asean Free Trade Area (Afta) have fallen to zero, Bangkok Post reported on December, 22.

CVS Syndicate Co, a subsidiary of the Singha and Leo brewer Singha Corporation, has had talks with brands in Australia, China and Vietnam and expects to conclude deals next year, managing director Preecha Chinaroot said.

The potential for imported beer has improved since import tariffs were eliminated under Afta on Jan 1 this year. More international brands have entered the Thai market even though the local beer market has not grown this year.

"The zero import duty and the strong baht will make imported beer compete with local beer because prices of imported beer will be reduced and even lower than for local beer brands sometimes," Mr Preecha said.

The total beer market is estimated at 19 million hectolitres this year. Of the total, about 800,000 to 900,000 litres, or just 0.05% of the total, are imported. Corona is the import leader with a 50% market share.

Sales of Corona this year are expected to drop by 9% to 90 million baht due to the instability in the first half, which hurt tourism.

However, tourism is back to normal and political conditions are more stable now, said Mr Preecha, so demand should improve.

CVS Syndicate expects its sales to grow by 20-25% next year, helped by a new light beer that it expects will contribute 20% of its total sales.


24 December, 2010