E-Malt.com News article: 2468

Thailand: Food and beverage giant San Miguel Corp. (SMC) has acquired the assets of Thai beer maker Thai Amarit Brewery Ltd. for US$102 million. Key SMC officials signed the deal with the Thai company on April 6. The assets include a brewery on a 21.75-hectare property in Pathum Thani province in Central Thailand, some 30 kilometers north of Bangkok. The brewery has a capacity of about one million hectolitres.

SMC expects to accelerate its entry into the lucrative Thai beer market. Thai Amarit Brewery will allow the entry of SMC`s own beer brands to Thailand, the fastest growing and largest beer market in Southeast Asia. It likewise offers potential synergy with SMC`s other projects in Thailand and in the region, SMC said in a statement. SMC considers Thailand as a strategic investment site due to its huge beverage market. Thailand's per capita beer consumption is one of the highest in Asia. The Thai economy is expected to grow at 6.7 percent this year in terms of gross domestic product.

San Miguel (Thailand) Co. Ltd., SMC`s venture in Thailand`s Rayong industrial estate, is involved in manufacturing and distribution of SMC products such as beverage products, processed food and snacks. It is also engaged in feed milling. The operation of this company, however, is limited to non-alcoholic beverage.

The first phase of this venture involves the construction of a non-alcoholic beverage facility on SMC`s 15-hectare property in the Amata industrial estate, which is about 114 kilometers from Bangkok.

Similar expansion for SMC is expected to start within the year in Australia, Indonesia, Vietnam, Taiwan, China and Malaysia, a company statement said. The company, owned 15 percent by Japan`s Kirin Brewery Co., has previously said it would spend 100 million dollars in each of the seven Asian markets it is targeting for expansion.


09 April, 2004