I don't give two flying hoots what the Thais do and what they buy on the side of the road. In the sticks they have made lao khao for decades. I tried it 25 years ago when I first moved to Thailand, whacky stuff.
They have been making cut ethanol with botanicals and colouring for years, bottling in branded bottles & selling it in many pubs and night clubs. Mix Thai whiskey with coke and hey man it's ok. Look around and see the extensive market for second hand alcohol bottles, huh!
On the other side of the spectrum, you underestimate the potential for micro pubs and Thai entrepreneurs. Look at the gin market globally and you don't think the savvy Thais with a few bob will not capitalise? And what's more I can legally have my own still and make my own quality gin without fear at a tenth if the cost, just need a measly 300B licence courtesy of my wife of course and allowed to legally keep 200 litres, not much I know but enough.