Lao Beer's Big Introduction In Thailand Delayed Until 2011

[george]

Lao Beer's big introduction in Thailand delayed

VIENTIANE: -- Lao Brewery Co's plans to flood Thailand with its popular Beer Lao next year have been put on hold until 2011, a senior executive said Thursday.

Lao Brewery, one of little Laos' biggest companies, has invested 25 million dollars in an expansion project in southern Laos aimed at exploiting the export market, specifically neighbouring Thailand, under the ASEAN Free Trade Agreement, which goes into effect in 2008 for the 10-country Association of South-East Asian Nations.

But the government of Laos and Thailand recently decided that beer was too sensitive a product to be tariff-free in their respective markets.

"Both governments decided to keep the tariffs on beer until 2011," said Sounthone Phommachak, senior deputy managing director of the Lao Brewery Co. "Each country is still trying to protect their own beer market."

Lao Brewery, a joint venture between the Lao government and Denmark's Carlberg, is to open a new plant in Pakse in southern Laos at the end of this year with an initial annual capacity for 50 million litres of beer.

The 25-million-dollar project was originally planned to tap the beer market of neighbouring Thailand, but now it is to focus on satisfying the growing local demand of Beer Lao, currently the only domestically brewed beer available in Laos.

The Vientiane-based brewery, currently with an annual capacity of 140 million litres, is deemed a corporate success story in communist Laos, a land-locked country with a population of less than 6 million.

Beer Lao is popular among visiting tourists and has won numerous international awards. It is one of the few brand names Laos can boast of.

"The Swiss make watches, the Germans make cars, but Laos has nothing right now except Beer Lao," Sounthone said.

In 2006, Lao Brewery's revenues were 80 million dollars with a profit of 15 million dollars and taxes to the government of 47 million.

Sales in the first eight months of this year were up 16 per cent, Sounthone said.

The brewery seemed happy with the government's decision to protect its domestic market, of which it claims a whopping 99-per-cent market share, even though it has meant a lost opportunity in Thailand.

"I think it's good for us because we have more time to make ourselves strong," Sounthone said.

Lao Brewery plans to boost its Pakse plant's capacity to 100 million litres in 2010 in preparation for the liberalization of the ASEAN beer market, but the company faces new competition at home next year when APN of Singapore plans to open a brewery in Laos to produce Tiger Beer.

ASEAN is made up of Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.

Under the group's free trade scheme, tariffs on most items will be slashed to less than 5 per cent next year, excluding beer and several other "sensitive" items.

-- DPA 2007-09-20

[Maigo6]

Beer Lao is certainly a good drop of beer.

[torrenova]

They can kep it. Horrible stuff.

[chinthee]

It's an excellent beer. I would take it over most of the other stuff in the market.

[CSS]

It's excellent and far superior to anything available here in Thailand.

[Big A]

One of the best beers on the international market. Any trip to Lao and Beer Lao & French bread is a must!!

[torrenova]

I've tried the regular and the dark beer and whilst the dark is an improvement, it is too sweet and the regular is vile. Whoever says that it is akin to a German pilsner has never been to Germany or had a decent beer in their lives.

That said, it is growing in popularity in Pattaya though I think the price is way too high. I predict that it will go the same way as Kloster, sidelined and in a minority of places while most people drink something else.

[lazeeboy]

I've tried the regular and the dark beer and whilst the dark is an improvement, it is too sweet and the regular is vile. Whoever says that it is akin to a German pilsner has never been to Germany or had a decent beer in their lives.

That said, it is growing in popularity in Pattaya though I think the price is way too high. I predict that it will go the same way as Kloster, sidelined and in a minority of places while most people drink something else.

dont drink beer ,only shorts ,not missed

[mrtoad]

A far superior beer to any of the local hangover inducing beers. Hence the reason why it's being delayed. Can't have competition.

[Captain Chaos]

A far superior beer to any of the local hangover inducing beers. Hence the reason why it's being delayed. Can't have competition.

Yup, I agree - definitely better to any of the Thai beers or to the locally brewed int'l brands. Drink it in the Bulls Head on Suk 33 and price wise it's the same as a bottle of anything else - but whilst there's a loyal following I would agree it seems to be a minority taste...

... more worringly I have seen an increasing number of folks drinking - and even appearing to enjoy - San Miguel Lite "beer"

[peterpanner]

The only good beer available in Thailand is Guinness (Yeah I know where it comes from), and that is so expensive at 200 Baht a pint/can here, it's almost a joke.

[BossHogg]

a most excellent beer compared to the local Thai stuff.Beer Laos is very popular up here in Chiangmai, espiecally with the expats. I try to buy cases of the stuff when i can.

[calibanjr.]

One of the best beers on the international market. Any trip to Lao and Beer Lao & French bread is a must!!

Absolutely! Big Beer Laos at a "sunset bar" on the Mekong for 7k kip (30 baht or so), croissants and coffee at the cafes in downtown Vientiane. Almost miss my Tourist Visa runs every 90 days.

DD

[Spit the Dog]

A far superior beer to any of the local hangover inducing beers. Hence the reason why it's being delayed. Can't have competition.

I'll agree with that. It's certainly a nicer beer to drink than any of the Thai beers.

I just hope that they keep the Lao prices when they come to Thailand. I can't remember the exact cost, but I think it was about the equivalent of 30 baht for a big bottle in Vientiane.

[naka]

People seem to love it or hate it.

On a trip to Laos recently I found it rather insipid. There again I'm a serious beer drinker

Oh ! if you go to Laos take your own beer condom (large)

Naka.

[kmart]

I quite enjoyed a few bottles on a recent trip to CM, where it seems readily available. Not bad, and better than most of the local p!ss.

I wish the Asahi Dry brand was more widely available too.

[ashacat]

... more worringly I have seen an increasing number of folks drinking - and even appearing to enjoy - San Miguel Lite "beer"

I'll get my coat...

[kankaroo]

One of the best beers on the international market. Any trip to Lao and Beer Lao & French bread is a must!!

I'm almost there now !

I always loved chilling out in Laos after long exposure to BKK.

Gorge myself on decent bread, pate, pastry, wine & beer etc.

I can get all these things with ease now within minutes from my house.

Pity it is in then UK though

[Artisi]

I agree beer Lao is one of ther best beer in this part of the world.

[Briggsy]

Expensive??? 30 Baht for a large bottle. And the Dark at 17 Baht for a small bottle. It's soooo cheap and both brews beat the pants of the Thai rubbish.

Can't wait till 2011 though. I buy it taxed or not.

[Gumballl]

Beer Lao is popular among visiting tourists...

True, Beer Lao is the best beer in Laos. Wait... it is the only beer in Laos. Maybe that's why it's so popular.

What Thailand needs is a "heavier" beer for those like myself who can't stomach piss-water. Chang is ok, but still not my favorite. It would be nice if Thailand and the US would sign an FTA so that beers from the micro-breweries could find their way into Thailand.

[Donnyboy]

Beer Lao is popular among visiting tourists...

True, Beer Lao is the best beer in Laos. Wait... it is the only beer in Laos. Maybe that's why it's so popular.

What Thailand needs is a "heavier" beer for those like myself who can't stomach piss-water. Chang is ok, but still not my favorite. It would be nice if Thailand and the US would sign an FTA so that beers from the micro-breweries could find their way into Thailand.

theres an opportunity there for someone to start and operate a micro-brewery here, then when the volume is sufficient to cause a minor nuisance to Mr Thai-Bev, he will pay squillions to buy you out

[Gumballl]

Or impose "visa restrictions" on those pints of beer such that as soon as the beer is bottled or poured out of a keg, it has to be dumped or shipped out of the country. ;-)

Thailand has always found a way to stifle businesses when the competition gets "hot". Probably why the Beer Lao thing is on hold for another few years.

[cooL_guY_corY]

oh wow does this mean thailand will start getting the Burmese "Mandalay Rum " ? !!

[mrtoad]

I suppose that Carlsberg is a good example of how foreign brewers can get treated here.

[Octavian]

Beer Lao is great beer.

[Acquiesce]

I will stick to Leo thank you very much.

[McFarang]

Beer Lao ice cold at Nikitas Rawai Beach and the Anchor Bar Kata excellent looking forward to quaffing a few after 5 months in the Ivory Coast although the local FLAG beer is good here its not as good as Beer Lao.

[scousemouse]

A nice clean tasting beer when compared to chang or leo .

Though I do love thai beer I wouldnt mind seeing some good competition .

[Tony Clifton]

Singh must be feeling the heat, they 've apparently made a 20 mil. deal with Man City.