Thai Beverage Enters The Local Brandy Market

[george]

Thai Beverage enters the local brandy market

BANGKOK: -- Leading alcoholic-beverage manufacturer Thai Beverage has spent more than Bt1 billion on a determined assault on the local brandy market.

It has launched its VSOP (Very Special Old Pale)-class brandy called Meridian, aimed first and foremost at eroding the 90-per-cent local-market share of its rival brand, Regency.

Viroj Chantaramolee, deputy managing director of subsidiary Thai Beverage Marketing, said brandy was now the fourth product segment in the company's spirit-product portfolio, following brown, white and herbal spirits.

"Our marketing direction this year will continue to focus on 'premiumisation', in which products are given a refreshed and distinctive quality to satisfy a broader range of consumers," he said.

Under this strategy, ThaiBev is branching into the lucrative brandy business for the first time with Meridian.

"The move will definitely strengthen the position of ThaiBev as Thailand 's alcoholic-beverage industry leader and further diversify our product portfolio," Viroj said. "We expect to capture more than 50 per cent of the local brandy market in the next five years."

He said the company had taken nearly two years to develop its packaging and marketing plan to launch its first brandy product. It wants to achieve Bt900 million in sales, or a 10-per-cent share of local brandy market, this year.

Viroj said Thai consumers drank brandy in a similar fashion to their consumption of whisky: mixing it with ice and soda or another carbonated drink, such as cola.

"The brandy market is large and has high potential. It was valued at Bt9 billion in 2009, and about 1.7 million crates are sold each year, with average growth in the range of 5-10 per cent per year. There are presently only a few players in this market, so ThaiBev is confident that it will be able to seize a sizeable market share," Viroj said.

He said sales of the new brandy would benefit from ThaiBev's strong retail presence, with more than 300,000 retail outlets around the country.

-- The Nation 2010-02-12

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[rkidlad]

I hope they monopolise this market like they have the beer market.

Freedom of choice just confuses people anyway.

[dttk0009]

Oh good, an expensive alternative to my drain cleaner.

[basjke]

So Regency has a 90% market share.Where do these guy get their figures?

When I take a look into a booze shop I see at least 10 different brands of brandy from which 5 are cheaper then Regency and all 10 are a better product anyway.So it is very hard to believe they have 90% market share.I guess more like 9%.

[senshusband]

Oh good, an expensive alternative to my drain cleaner.

[senshusband]

So Regency has a 90% market share.Where do these guy get their figures?

When I take a look into a booze shop I see at least 10 different brands of brandy from which 5 are cheaper then Regency and all 10 are a better product anyway.So it is very hard to believe they have 90% market share.I guess more like 9%.

I only drink brandy when at the disco and I have only seen most of the Thais drinking Regency or Johnny W. I rather like Regency myself. It is pretty smooth to me. I am primarily a beer guy, but if liquor is going to be at the table I would rather it be Regency and Coke.

[connel707]

So Regency has a 90% market share.Where do these guy get their figures?

When I take a look into a booze shop I see at least 10 different brands of brandy from which 5 are cheaper then Regency and all 10 are a better product anyway.So it is very hard to believe they have 90% market share.I guess more like 9%.

I only drink brandy when at the disco and I have only seen most of the Thais drinking Regency or Johnny W. I rather like Regency myself. It is pretty smooth to me. I am primarily a beer guy, but if liquor is going to be at the table I would rather it be Regency and Coke.

I have a rather large one right here in front of me now...going ...going ....gone... time for a refill...... cheers Regency...

[senshusband]

So Regency has a 90% market share.Where do these guy get their figures?

When I take a look into a booze shop I see at least 10 different brands of brandy from which 5 are cheaper then Regency and all 10 are a better product anyway.So it is very hard to believe they have 90% market share.I guess more like 9%.

I only drink brandy when at the disco and I have only seen most of the Thais drinking Regency or Johnny W. I rather like Regency myself. It is pretty smooth to me. I am primarily a beer guy, but if liquor is going to be at the table I would rather it be Regency and Coke.

I have a rather large one right here in front of me now...going ...going ....gone... time for a refill...... cheers Regency...

I don't know about others, but I find it amazing how fast Regency can be consumed. Especially when there is a cute hostess in uniform standing beside the table just waiting to refresh your ice and beverage. And my friends ask me why I never come back to the States. If they only knew.....

[basjke]

So Regency has a 90% market share.Where do these guy get their figures?

When I take a look into a booze shop I see at least 10 different brands of brandy from which 5 are cheaper then Regency and all 10 are a better product anyway.So it is very hard to believe they have 90% market share.I guess more like 9%.

I only drink brandy when at the disco and I have only seen most of the Thais drinking Regency or Johnny W. I rather like Regency myself. It is pretty smooth to me. I am primarily a beer guy, but if liquor is going to be at the table I would rather it be Regency and Coke.

I have a rather large one right here in front of me now...going ...going ....gone... time for a refill...... cheers Regency...

I'm sure there will even be members who call lao khow a gift of god.

Brandy with coke.

[in2fridge]

So Regency has a 90% market share.Where do these guy get their figures?

When I take a look into a booze shop I see at least 10 different brands of brandy from which 5 are cheaper then Regency and all 10 are a better product anyway.So it is very hard to believe they have 90% market share.I guess more like 9%.

Nice to know someone has taken the time to do some in depth research

...Now where's my liver pills .....

[Gary A]

If the only booze available was Lao Kao, I can assure you I would be a teetotaler. NEVER have I tasted a nastier drink.

[Chang_paarp]

Now .... {Chang speculates}

if we could persuade Thai Bev that there is an untapped market (with significant profit) in wine there might suddenly be the political pressure/clout to get the taxes on wine to mirror those of beer or spirits.

[nisakiman]

Now .... {Chang speculates}

if we could persuade Thai Bev that there is an untapped market (with significant profit) in wine there might suddenly be the political pressure/clout to get the taxes on wine to mirror those of beer or spirits.

What is it that the Thai government has against wine? You can get drunk as a skunk for tuppence on Sangsom or mekong, but it'll cost a kings ransom to get even slightly tipsy on wine....

Grrrr... mutter mutter....