Thailand: Thai Beverage launches Light Beer to tap high-end market

Thai Beverage PCL, brewer of Thailand's best-selling Chang Beer, launched on March 8 a new brand of beer, as part of its plan to tap the higher end of the market this year, according to Dow Jones News.

Somchai Suthikulpanich, managing director of Thai Beverage Marketing Ltd., the marketing arm of Thai Beverage, said the new product, Chang Light, has 4.2% alcohol content, compared with 5% in regular beer.

The company expects to this year hold a 50% share in the light beer market, which accounts for about 2% of the total domestic market. Around 35 million liters of light beer is expected to be sold in Thailand this year. "It is a new segment and we don't expect light beer to represent a much bigger share in the overall market in the coming years," said Somchai.

Chang Beer currently controls around 66% of the budget beer segment in Thailand. The company has set aside THB30 million (US$764,000) to THB40 million for its marketing campaign for Chang Light. It will also introduce one to two more new brands of higher-end beer this year, Somchai said without elaborating.

Meanwhile, Thai Beverage reiterated that it will continue to pursue its planned dual listing in Thailand and Singapore, although a local listing may encounter further delays.

The company said it will wait for a parliamentary passage of a law governing the alcohol industry before listing on the Stock Exchange of Thailand.

Prime Minister Thaksin Shinawatra dissolved parliament late last month and called snap elections on April 2 amid strong oppositions against his government. "There will likely be more delays and we will have to wait at least until after the new parliament is elected," said Kasemsant Weerakun, Thai Beverage's vice president of corporate communications.

The company sought to list its shares on the SET in what could be the country's biggest share sale by a private company, but the plan has been postponed since last year due to strong opposition from anti-alcohol groups.

10 March, 2006