E-Malt.com News article: 1845

Thai Asia Pacific Brewery Co (TAPB), part of the Dutch beer giant Heineken, announced on November 25 a comprehensive marketing plan to sustain its leadership in Thailand's premium beer market amid the expected heavy competition next year, particularly from local brewer Boon Rawd Brewery, Bangkokpost reported on November 26.

The producer of the 70-year-old Singha Beer said recently that it would expand aggressively into the premium beer segment next year, aiming to capture a market share of 6-7% through the relaunches of the Asahi and Mittweida brands.

Panya Pongtanya, TAPB's general manager, said his company would spend about 650 million baht next year on advertising and marketing campaigns in order to sustain its strong performance.

At the same time, the company will also introduce a new dispenser and keg of Heineken draught beer, called Easy-Draught. The new system, developed in the Netherlands, allows sellers to keep beer even longer, for up to 21 days from three days currently.

The launch is aimed at small restaurants, perceived as an additional distribution channel for Heineken beer nationwide, and at promoting draught beer consumption not only in the winter but throughout the year.

Two hundred restaurants will be chosen to join the project this year the number will be increased to 350-400 next year.

Thailand is only the second country in Asia where the Easy-Draught system, which cost 800 million baht to develop, has been made available.

Mr Panya said the company welcomed the launch of more premium beer brands in the market next year because their presence would help expand the market.

The company believes it now has high capacity to compete with other players in the market.

In the year to September, TAPB's total sales grew 10% to 6.6 billion baht. Next year, the company projects sales to continue to grow at the same pace.

Sales of draught beer will also increase to between 9% and 10% of its total, up from 7% and 8% currently.

At present, Heineken is the market leader, holding an 80% share in the local premium beer segment worth eight billion baht. Carlsberg controls a share of 16%, ranking second. Next year, the market is expected to grow by 7%.

Thailand's total beer market, which comprises the premium, standard and economy.segments, is estimated to be worth 73.2 billion baht this year and will grow to 80.5 billion baht next year.

Singha Beer controls 100% in the standard market worth nine billion baht, while Chang leads the economy beer segment valued at 56.2 billion baht, with an 82% share.


26 November, 2003