E-Malt.com News article: Thailand: Thai Beverage invests Bt2.54 billion to improve logistics system

Thai Beverage's wholly owned subsidiary Thai Beverage Logistics will invest Bt2.54 billion in a project aimed at improving the efficiency of its logistics system and reducing costs, The Nation reports, according to The Financial Times Limited, August 15.

While the project targets an improvement in its marketing strength locally, Thai Beverage also reported that its international marketing arm had successfully introduced Chang Beer in the United States, where Thai restaurants are a growth industry.

In a filing to the Singapore Exchange, Thailand's largest beer and liquor company said Thai Beverage Logistics would invest Bt1.459 billion in the construction of five regional distribution centres (RDCs), Bt1.02 billion in the procurement of a new side-loading fleet, and Bt62 million for the implementation of a supply-chain management system.

"The efficiency of the logistics network and process will be improved, in line with the current business strategy. The inventory will be subjected to more stringent controls and improved accountability," Thai Beverage said, adding that operating costs would also be reduced.

The company was not available for further comment on August 14.

Earlier reports showed that the company had so far had its plants cover the marketing of products in their respective regions. It has 16 distilleries and three breweries.

Thai Beverage said that by the final quarter of the year, it expected to start investing in the Southeast RDC. In 2008, two more will follow, located in the South and Northeast. In 2009, two more RDCs in the East and North will be constructed.

To finance the investment, Thai Beverage Logistics will increase its capital from Bt12 million to Bt1 billion via a rights issue. It will borrow the remaining Bt1.54 billion from financial institutions or its parent.

Meanwhile, New York City-based International Beverage Holdings USA has announced that Chang Beer is now available in the US, with a focus on the growing number of more than 5,000 US restaurants that serve Thai and Asian fusion cuisine.

"We already have commitments from many restaurants in our key markets and expect Chang to be a top-seller in these establishments and in many more as we roll out Chang across the US," said president John Lennon.

IBHL USA is one of five global regional offices of International Beverage Holdings, which has been established as the international arm of Thai Beverage. The company exports brands to more than 80 countries and operations are managed out of five regional offices located in Thailand, Singapore, Hong Kong, the United Kingdom and the US.

First introduced in 1995, Chang Beer's annual global sales have reached US$1.139 billion (Bt38.7 billion), with case sales topping 126 million.


17 August, 2007