E-Malt.com News article: Thailand: Thai Asia Pacific Brewery expects sales of US$178.8 million in 2005

Thai Asia Pacific Brewery Co, the brewer of Heineken and Tiger Beer (TAPB) expects the projected 7 % sales growth to be fulfilled, if not exceeded. The brewery expects sales of nearly 7.5 billion baht (US$178.8 million) in the fiscal year, up from 7 billion baht (US$166.9 million) over 2004, which itself was a 6 % increase from 2003. Looking ahead, sales growth is expected to be between 5 % and 10 % for fiscal 2006.

The steady sales increase will see Heineken's 88 percent market share in the premium beer segment in 2004 increase to more than 90 percent this year, strengthening its near-monopoly grip on the market.

Jeffery Kimble, commercial director of TAPB, explained that much of Heineken's success rests on the company's knowledge of ``what'' to say to consumers _ and that this year, it's being said with a 900 million baht (US$21.5 million) advertising and promotional budget, 40 percent up from 2004, and largely because of the launch of Tiger Beer. Of that, between 15 percent and 20 percent was to promote music.

``We're not going to get people to drink Heineken every time they buy a beer,'' said Mr Kimble. Instead, he ``engages'' the consumers through ``occasions'' and ``locations''.

``I can spend a lot of money to try to convince people to drink Heineken at home or in the provinces. But that money probably won't do me any good,'' he said. ``It's for a party on Friday night, special occasions or to impress someone.''

So Mr Kimble emphasises the importance of event marketing, which associates Heineken with a successful lifestyle _ modern, positive and connected. Heineken has been around since 1863, but according to Mr Kimble, it has the personality of a mid-twenties professional, and the targeted consumer is 20-35 years old.

Within this group, Mr Kimble uses terms such as ``emotionally connected,'' ``personal relationship and ``shared interests'' to explain his strategy. ``We want to engage. Heineken wants to know what you're doing. We want to be connected to what's going on now,'' said Mr Kimble.

And ``what's going on'' is people enjoying the inseparable axis of music, party and alcohol _ it always has been that way and always will be. In 2003, TAPB organised the first Hua Hin Jazz Festival. Mr Kimble explained that jazz was chosen for its class, refinement and relaxed mood. ``We can do a pop music event like Britney Spears,'' said Mr Kimble, ``but that's more Coke and Pepsi.''

The Hua Hin Jazz Festival organised earlier this month - headlined by multiple Grammy winner John Pattitucci - welcomed some 30,000 visitors, up from 20,000 last year. ``All I know is, the beach was so packed I couldn't walk,'' he said.

TAPB also organises the Bangkok Jazz Festival and helps with Fat Festival, the indie music event created by Fat Radio.

Asked if there might be confusion in brand identity, as these music events associate Heineken with both the older, yuppie jazz crowd and the younger, hippy indie crowd, Mr Kimble explained that the indie lifestyle is about expression and passion, which is in line with Heineken's.

``It's having a beer, being out with music, celebrating counter culture and celebrating the indie lifestyle once a year,'' he said. ``Besides, if Heineken only equals jazz it's going to be worse.''

Other than local music events, on the corporate level there's Heineken's Thirst DJ Competition, where deejays from 25 countries compete. ``We want to identify and promote new, young deejays and give them a stage to perform.'' The Heineken Music Thirst Asia Final 2005 was held on May 28 at Queen Sirikit National Convention Center's Retro Live Cafe. The Global Final will be in South Africa.

By marrying Heineken to these music events and connecting with the consumers through music, the brand is viewed as a hip, yuppie drink (modern, successful) that can also be enjoyed by the younger crowd (hip, artistic).

``You don't just drink the beer, you drink the brand,'' said Mr Kimble.

Through 2006, Mr Kimble expects to continue with music activities, but has no plans for any major additional events. He predicts sales for Heineken will increase by 5-10 percent, driven by music events, the Heineken Golf Championships and innovative commercial spots such as the ``digital sound check'' ads in theatres. It's about visibility, being seen everywhere and connected to things considered hip, modern and successful.

Thailand is the sixth largest market for Heineken worldwide, with the largest brewery in the Asia Pacific region producing two hundred million litres annually - the equivalent of around 1,000,000 standard-sized bottles per day.

Premium brands in 2004 accounted for about 9 percent of the beer market, worth 82 billion baht (US$2.0 billion) - 12 percent growth from 2003. It should grow by 7-8 percent this year. Standard beers like Singha and Tiger have 12 percent of the market; economy beers have 79 percent.


13 July, 2005