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Two companies control Thailand's beer and spirits market; law changes unlikely to greatly affect customer choice


webfact

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20 minutes ago, chilli42 said:

One is tempted to come to the conclusion that Thai business lacks the capability to compete on a level playing field.  The constant protection of industry assures that the talent pool will never develop the skills and competencies that would allow them to compete in an open market.  The protectionism is bad for everyone other than the wealthy incumbents

Sure , but this is Thailand , only the wealthy matter !

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2 hours ago, Mac Mickmanus said:

Did they ever find out why that top Government official was getting 50 000 a month from the beer companies ?

 

Well, he made it into Wikipdia's Corruption in Thailand article:

 

Sanit Mahathavorn, Bangkok police chief
When the National Anti-Corruption Commission (NACC) revealed the asset declarations of new NLA members, it was disclosed that Bangkok police chief Police Lieutenant General Sanit Mahathavorn had received monthly payments of 50,000 baht since 2015 from alcohol conglomerate Thai Beverage PLC as an adviser to the firm.[43] Sanit also serves as a member of the city's alcohol control committee, raising conflict of interest issues. Calls for him to step down from his police post were immediate.[44] In January 2017 a Royal Thai Police investigation confirmed that Sanit is not violating police rules by holding an advisory role with a major alcohol conglomerate.[45] On 1 March 2017, more than two months after the original allegations were made, both Sanit and ThaiBev denied that he was ever employed by ThaiBev and that the report was due to clerical error.[46] Just two weeks after Sanit's denial that he was on ThaiBev's payroll, Thailand's Office of the Ombudsman said that it had obtained his original financial disclosure document and found it certified with his signature. It now appears that there were two versions of Sanit's financial disclosure form, one listing ThaiBev payments and one with no mention of ThaiBev. Unexplained is how the ThaiBev salary did not appear on the version of Sanit's financial disclosure statement posted online by the NACC.[47] In mid-March the Office of the Ombudsman, which had accepted a petition to investigate the case, announced that there is not enough evidence for it to consider and the matter is closed.[48]

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Thai beer is only rivaled by Serbian beer, and the mass produced American beers, in terms of the very low quality. Poor grade of hops, barely, and the production process seems to be entirely lacking in pride. Typical of the big monopolies. Even a large production beer, like Beer Laos blows away any Thai beer, hands down. Thailand desperately needs a vital craft beer movement, and the youth are ready to mount it. If only the dinosaurs would stop protecting their "bankers" and move out of the way. In other words, allow some progress, you backwards dinosaurs! 

 

It is almost as if they equate the craft beer movement with youth and rebellion. Keep the youth down, at all costs, and continue to protect the billionaires. 

 

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1 hour ago, klauskunkel said:

 

Well, he made it into Wikipdia's Corruption in Thailand article:

 

Sanit Mahathavorn, Bangkok police chief
When the National Anti-Corruption Commission (NACC) revealed the asset declarations of new NLA members, it was disclosed that Bangkok police chief Police Lieutenant General Sanit Mahathavorn had received monthly payments of 50,000 baht since 2015 from alcohol conglomerate Thai Beverage PLC as an adviser to the firm.[43] Sanit also serves as a member of the city's alcohol control committee, raising conflict of interest issues. Calls for him to step down from his police post were immediate.[44] In January 2017 a Royal Thai Police investigation confirmed that Sanit is not violating police rules by holding an advisory role with a major alcohol conglomerate.[45] On 1 March 2017, more than two months after the original allegations were made, both Sanit and ThaiBev denied that he was ever employed by ThaiBev and that the report was due to clerical error.[46] Just two weeks after Sanit's denial that he was on ThaiBev's payroll, Thailand's Office of the Ombudsman said that it had obtained his original financial disclosure document and found it certified with his signature. It now appears that there were two versions of Sanit's financial disclosure form, one listing ThaiBev payments and one with no mention of ThaiBev. Unexplained is how the ThaiBev salary did not appear on the version of Sanit's financial disclosure statement posted online by the NACC.[47] In mid-March the Office of the Ombudsman, which had accepted a petition to investigate the case, announced that there is not enough evidence for it to consider and the matter is closed.[48]

Beverage companies pay members of the Government advisers and the Government doesn't allow small brewers to make beer , thus forcing people to buy the beverage companies drinks  and make a large profit and pay for "advisers" ?

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If a customer has the chance to taste say a new beer that has not been given exposure and it is definitely one they prefer, then like many customers from different countries they will ask for it. Just allow the choice & the lcustomer can decide. In the U.S. Budweiser tried fighting the micro breweries and lost. That’s what happens when a name can’t stand up to a better product.

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17 hours ago, webfact said:

But only two companies controlled the market - Boodrawd Brewery and Thai Beverage.

Who I'm sure have richly rewarded the top tier for the privilege ever since.

But as the top tier do not have to provide evidence of income we will never know.

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18 hours ago, RandolphGB said:

A monopoly. Just like the banks, the airlines, the taxis and every other major industry in the country.

 

Big corporations and the government are connected and they’ll do everything they can to maintain the cartel. 

You forgot to mention private hospitals.  

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19 hours ago, webfact said:

Euromonitor reported in 2020 that the beer market in Thailand was worth 260 billion baht with Boonrawd controlling 57.9% and Thai beverage 34.3%. Thai Asia Pacific Brewery had just a 4.7% stake in the total market.

We all know Thailand doesn't like competition and choice... big family concerns run the show.

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21 hours ago, webfact said:

customer choice remains and will continue to be limited. 

The whole of Thailand suffers at the hands of six monopolies/cartels.  They fix prices and supply.  They are more powerful than the army or police who they bought long ago.

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10 hours ago, perryjr2 said:

That’s what happens when a name can’t stand up to a better product.

Yeah, but the smart thing to do for Boon Rawd and ThaiBev is to let the nascent craft brewing industry to thrive. Let these craftbrewers take all the risk, sort out what styles work, then buy them out when they reach a certain level of success, let them manage the sub-brand going forward. Win-win-win.

 

But I fear the Thai patrician "thought-process" is that "we know what's best".

 

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16 hours ago, VocalNeal said:

Compared to????

Having just returned from US, we visited NYC for a few days. Trader Joe's in dead center Manhattan had some reasonable import 6pax of beer for us5.99, that's 38b per beer - up from 34b per beer. Another comparison would be the cost of a beer as percentage of a bogan standard workers wage. So, b50+ / b450 day. Even at say 550 pd it's a whopping ten percent of a laborers daily wage. Fairly objective, odd you even had to ask.

Edited by Laphroaig27
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"Thai Beverage controls 80% of the spirits market and has 18 production facilities nationwide as well as control over imports via companies in its portfolio."

One of these facilities (Thep Arunothai Co., Ltd.) บริษัท เทพอรุโณทัย จำกัด, GPS: 17°55'12.3"N 102°48'30.2"E) is on Road 212 when leaving Nong Khai towards the east (Phonpisai). On KM 7 on the left hand side there is a HUGE production.

The waste (sludge) of the booze/beer production is pumped across the road into fields which leaves behind an unimaginable stench. The police, upon consultation, said to sort it out with the factory manager directly, who remains inaccessible. 

Money talks, stinking sludge stays .......... thousands of people in the neighbourhood are affected but nobody dares to open the mouth. 

Apart from the terrible stench nobody knows, what how if and when they pump out ...... for the betterment of the environment? 

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Thailand is often described as a democracy but it isn't. If it was this type of thing would not be able to continue and there would be a more competitive market with more competitive prices. The lack of competiton is precisely why the ruling elite will never allow a democracy. They like things the way they are and for the most part the populace does not object anyway. 

Education (or lack of it) enables this also. 

Edited by Jackbenimble
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On 11/4/2022 at 3:33 PM, topt said:

When did you dream that? ????

Even if someone suggested it, the likelihood of it happening would be miniscule.  

Sorry, but I rarely have dreams, unfortunately! ????

 

However, for your information, from September 21, 2021 :- 

 

"Thailand Plans to Cut Import Duty on Wine and Spirits by 50%" (Also planned was a 50% reduction on the duty on cigars!)  Customs Director-General Patchara Anuntasilpa was quoted as saying that about 30% of alcoholic beverage and cigar products will be covered by the planned tax cuts. 

Edited by sambum
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2 hours ago, sambum said:

Sorry, but I rarely have dreams, unfortunately! ????

 

However, for your information, from September 21, 2021 :- 

 

"Thailand Plans to Cut Import Duty on Wine and Spirits by 50%" (Also planned was a 50% reduction on the duty on cigars!)  Customs Director-General Patchara Anuntasilpa was quoted as saying that about 30% of alcoholic beverage and cigar products will be covered by the planned tax cuts. 

Yes and what has happened - I remember the news but no follow up - hence the dream state :thumbsup:

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On 11/4/2022 at 9:15 PM, Mark Nothing said:

5 years ago I poured all my alcohol down the toilet and was almost sickened by the toxic stench.  I will not be contributing to the monopolist's coffers anymore.

You mean it went through your body first? Or are you a holier than thou goody goody?

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