Tsingtao Beer To Open Brewery In Thailand

[webfact]

Tsingtao Beer to open brewery in Thailand

Xie Chuanjiao

China Daily

Tsingtao Beer - File photo. Source: Wikipedia

China's brewery giant Tsingtao Beer announced on Monday (October 17) that it plans to set up its first overseas plant in Bangkok, the capital of Thailand, as a significant step towards globalization for the century-old brand, which was introduced by the Germans 108 years ago.

The plant, which will begin operations in early 2013 with an estimated total investment of $100 million, will have an annual production output of 200,000 liters and will create hundreds of local jobs, said Jin Zhiguo, chairman of Qingdao, Shandong-based Tsingtao Brewery Co Ltd. The company's branch in Thailand, operating as Tsingtao Beer (Thailand) Co Ltd, will be the sixth-largest brewery in terms of production output in the world.

"The exploration of the Southeast Asian market will be the first stop for Tsingtao beer in the quest to expand to European and Oceania markets," Jin said. "It is a solid step towards multinational management after careful preparation and accumulation."

The establishment of the Thai plant aims to ride on the enormous market volume and growing demand.

"Thailand has an important geographical location among the 10 Asean countries, with a complete market economic system, an open investment environment and a climate for all-year-round beer consumption," Jin said at a signing ceremony on Monday morning in Bangkok.

The brewery exports beer to more than 70 countries around the world. The overseas plant is expected to expand its market share in the Southeast Asian and European markets, according to a statement from the company.

Jin said the company's first step towards internationalization traced back 100 years ago, when the British and German merchants brought yeast and beer-making techniques to Qingdao. Three years later, the beer company won a gold medal at the Munich Beer Festival.

The Thai project marks another step towards further capital internationalisation and the globalisation of resource allocation and supply chain management.

"Localised production for local supply will provide greater efficiency in management and supply chain, improve product freshness and quality, and enhance international competitiveness," Jin said.

"It is the time to go global to introduce our beer to different countries. We want Tsingtao beer to penetrate people's lives through the value we create to local consumers, communities and governments," Jin said.

Economic and cultural exchanges between China and Thailand have been growing rapidly, laying the foundation for Chinese companies to invest in Thailand, said Li Qun, the mayor of Qingdao.

Local sources said beer consumption in Thailand has been on the rise along with growing tourism.

"As a world-renowned brand, Tsingtao beer enjoys a great reputation among the Thai people for its century-old traditions of beer making. The project will bring us not only quality beer, but also advanced technologies and management methods, thus contributing to our nation's beer industry," Witoon Simachokedee, permanent secretary of Thailand's Ministry of Industry, said at the ceremony.

The project will likely benefit Thailand's agricultural industry, as Thailand abounds with rice, an important raw material of beer.

Zhang Yi, associate professor of the University of International Business and Economics in Beijing, said emerging markets, including China and Asean, are the latest battlefields for global brands.

"Emerging markets not only have a great potential for consumption, but also provide favorable policies and preferential tariffs, which can bring concrete benefits to companies," he said.

"After Tsingtao Beer establishes its branch in Thailand, tariffs can be avoided, logistics can be shortened and freshness of the beers can be guaranteed. It will lower tax rates for Tsingtao Beer in the Southeast Asian markets," Zhang added.

Chinese investment in Thailand has been growing. China invested $830 million in Thailand in the first eight months of this year, exceeding last year's total investment, said Guan Mu, Chinese ambassador to Thailand. He added that bilateral trade reached $49.4 billion in the first nine months of this year.

-- ANN 2011-10-18

[geriatrickid]

Why is China investing? According to another thread, foreign investors were supposed to be running away screaming.

[Thaddeus]

Why is China investing? According to another thread, foreign investors were supposed to be running away screaming.

The Chinese can hardly be called foreign.

[ParadiseLost]

At last - with all the flooding local water is now polluted enough to get that authentic Chinese taste...

[DP25]

Makes sense, even if it doesn't take off with Thais, Chinese are by far the largest tourist group now and they'll buy lots of it

[otherstuff1957]

:lol:

I can hardly wait! I LOVE Tsingtao beer!

:jap::jap:

[abhaya]

At last some good news! Gan bei!

[onionluke]

Ho ye ! Yum Boi !

[SAffer]

At last - with all the flooding local water is now polluted enough to get that authentic Chinese taste...

[george]

Excellent, love that beer!

[jalansanitwong]

I dont know why the media always refer to the Chinese as foreigners. Thailand is Chinese in almost every way. If its beer is half decent it could spell the end of the beer monoply here. The rich Chinese Thais will simply shift investments to Chinese variety. Thai beer is almost undrinkable .

[madmitch]

"Thailand abounds with rice, an important ingredient in beer".

I've never seen rice mentioned in the Rheinheitsgebot.

No wonder Chinese beer tastes so bad.

[onionluke]

If I was given a choice between bottles of Carlseburg and bottles of Tsing Tao , equaly cold , I would drink the bottles of Tsing Tao . If you haven't tried any , give it a go . Go on have a drink .

[Humphrey Bear]

I dont know why the media always refer to the Chinese as foreigners. Thailand is Chinese in almost every way. If its beer is half decent it could spell the end of the beer monoply here. The rich Chinese Thais will simply shift investments to Chinese variety. Thai beer is almost undrinkable .

Ha ha ha!

After working for ten years in 'dry' Libya - where we all brewed our own - I was posted to Hing Kong and introduced to Tsing Tsao beer.

I immediately felt at home, because it was just like Libya - a home-brew sort of taste, varying in each bottle drunk, as does the home-brew. Some quite good, some mediocre, a lot downright awful. But we drank grot grog in Libya because there was no alternative. In HK, or in Thailand, there is a large range to choose from and that puts TT off my shopping list.

[wintermute]

I dont know why the media always refer to the Chinese as foreigners. Thailand is Chinese in almost every way. If its beer is half decent it could spell the end of the beer monoply here. The rich Chinese Thais will simply shift investments to Chinese variety. Thai beer is almost undrinkable .

The day the local Thai food and beverage monopoly end is the day that C.P. engineers a new breed of flying pig.

[hedonist44]

Why is China investing? According to another thread, foreign investors were supposed to be running away screaming.

The Chinese can hardly be called foreign.

Bingo !

[toastie]

great news! Tsingtao is delicious.

[Daewoo]

Tsing Tao is actually a good beer... in so much as it is reasonably drinkable, and you can drink it (in China) until you fall over with only a little hangover... so it must be relatively pure...

On the other hand, I am extremely concerned about the Chinese jugernaught, they will screw the Thai's left right and centre. Over 20 years they will cripple Chang, Leo, Lao, through undercutting and dodgy deals, and once they fall over, triple the price so they can make money.

They will only use Chinese owned distributers.... They will import Chinese labour... They will ignore already low Industrial Relations Standards... They will ignore already low safety regulations...

They know their economy is about to crash, and are looking to stabilise it through revenue from easily accessable foreign markets, like Africa, Asia, Eastern Europe (and the US and Australia)...

[ldshenton]

Fantastic, I can repeat my drunken night out in China how I have missed you my old friend Tsingtao . The wife will not be pleased.

[TallGuyJohninBKK]

At least they're not deciding to locate their new brewery in Ayutthaya.... No shortage of water there...

Right now, TsingTao is available in at least a few places around BKK as an import... including some Villa Markets...

I wonder if the company, between now and the time their brewery begins production, will make efforts to expand their beer availability here as a prelude to their local launch?

Edited October 18, 2011 by TallGuyJohninBKK

[terryp]

Another beer that will be pumped full of Chemicals just like all Thai brewed beer....it will taste nothing like the original

[nong38]

What I really miss is a dark beer, dark beer has good antioxidant properties, so is good stuff, do these Chinese chaps do a dark beer?

[toybits]

I like Tsingtao Beer as well. Singha beer better shape up if they want to keep their market share.

[JCCR6]

Tsingtao beer enjoys a great reputation among the Thai people for its century-old traditions of beer making

Really??

[burgdawg]

...I am with nong38...I like a dark beer. Like double IPA. There is an American brew called "Myrcenary"...10% alcohol. One cold bottle and you are sitting down, reoh reoh.

Probably the best beer being brewed in the world now is in German, UK and USA micobreweries. In people's shops and living rooms.

Handcrafted beers.

Oh my Buddha!

[burgdawg]

FYI........... (no personal nor biz involvement, I just like good beer)

Myrcenary Beer: www.odellbrewing.com from Ft. Collins, Colorado

and then I stumbled upon a very sweet beer (if your palate enjoys such a thing)...

it pours like a fine wine with a foam head....Wild Blueberry Beer.

I know, too sweet for some, but then I noticed they are always sold out!

Called "Wild Blue" Premium Blueberry Lager.

Hang in there.....www.wildbluelager.com

Yet, probably the BEST beer in the world is fresh Guiness Draught.

Now we are talking!

[canopus1969]

Tsing Tao is actually a good beer... in so much as it is reasonably drinkable, and you can drink it (in China) until you fall over with only a little hangover... so it must be relatively pure...

On the other hand, I am extremely concerned about the Chinese jugernaught, they will screw the Thai's left right and centre. Over 20 years they will cripple Chang, Leo, Lao, through undercutting and dodgy deals, and once they fall over, triple the price so they can make money.

They will only use Chinese owned distributers.... They will import Chinese labour... They will ignore already low Industrial Relations Standards... They will ignore already low safety regulations...

They know their economy is about to crash, and are looking to stabilise it through revenue from easily accessable foreign markets, like Africa, Asia, Eastern Europe (and the US and Australia)...

One interesting question is who will be their Thai (51%) partner ? Have looked everywhere but cannot find a mention - or has the law changed to allow foreigners to brew and sell alcohol

[bigbamboo]

So one hundred years ago this beer brewed by Germans in China won a gold medal at a German beer festival? And now it will be mass produced in Thailand. Pass.

Edited October 18, 2011 by bigbamboo

[Thaddeus]

What I really miss is a dark beer, dark beer has good antioxidant properties, so is good stuff, do these Chinese chaps do a dark beer?

The Cambodians do, Black Panther, it's good stuff.

[thaicbr]

"Thailand abounds with rice, an important ingredient in beer".

I've never seen rice mentioned in the Rheinheitsgebot.

No wonder Chinese beer tastes so bad.

Actually funny enough no rice in this Chinese one. But Leo and Chang do use rice.