Legal Dispute Halts Carlsberg Production

[george]

Legal dispute halts Carlsberg production

Case pits Charoen against Danish group

BANGKOK: Local production and distribution of Carlsberg beer in Thailand has been halted as the legal dispute between Thai liquor tycoon Charoen Sirivadhanabhakdi and the Danish brewer Carlsberg A/S escalates to another level.

Production from the Wang Noi facility in Ayuthaya, owned and operated by Carlsberg Brewery (Thailand), a joint venture between Charoen Sand Carlsberg A/S, was suspended on Tuesday, along with distribution.

Carlsberg Brewery (Thailand) attributed the suspension to legal constraints pending the outcome of ongoing arbitration between the two parties. Carlsberg is the country's second best-selling premium beer behind Heineken.

The dispute arose six months ago when the two sides were unable to establish ``constructive co-operation'' and subsequent attempts to mediate appeared irreconcilable, prompting them to refer the matter to an arbitrator in London.

Chang Beverages Pte Ltd, a Singapore-incorporated firm controlled by Mr Charoen, claimed that management changes at Carlsberg Breweries A/S (CBAS) in 2001 led it to unilaterally attempt to end the Carlsberg Brewery (Thailand) joint venture that started in March 2003, by removing several Chang-nominated directors.

Thanit Thamsukati, an adviser to Mr Charoen, said yesterday the suspension of production and distribution of Carlsberg would last until a verdict from the arbitrator is available.

``We don't know when the outcome from the arbitration will be in place but we hope it will be positive,'' he said.

While several grocery store operators in Bangkok said yesterday that they had been able to get new supplies of Carlsberg, Mr Thanit said what was being distributed was the last remaining stock already delivered to wholesalers.

The absence of Carlsberg supplies will leave a market vacuum that will be taken by by its rivals, notably Thai Asia Pacific Brewery Co, which brews Heineken under licence from Heineken N.V of the Netherlands.

Heineken claims an 80% share of the eight-billion-baht premium beer segment, while Carlsberg claims 20%.

Carlsberg Brewery's Wang Noi plant, built at a cost 3.64 billion baht, is one of largest Carlsberg facilities in Asia and has been producing Carlsberg under licence since 1993 with brewing capacity of 150 million litres a year. The 30-year licence expires in 2020.

However, Carlsberg Brewery (Thailand) last year produced only 33.6 million litres when the market for premium beer rose by 6%. This year's market growth is expected to be 7%.

--Bangkok Post 2004-02-14

[Rinrada]

"The absence of Carlsberg supplies will leave a market vacuum"

Hey this is getting serious.. Its bad enough when the bar calls for early closing but when the frigging place runs out of beer

[ZoiD]

carlsbergs for girls anywany.. good riddents

[markt]

At last, some good news for Jutinant Phiromphakde.

=

[dr_Pat_Pong]

carlsbergs for girls anywany.. good riddents

George used to sip Carlsberg too. I wonder now......perhaps George has tendencies ....

[pnustedt]

I was wondering why Chang had gone up by over 25% in price!

[Mac Mickmanus]

What was the outcome of this dispute ?

[Orinoco]

17 year old thread. LOL

[Mac Mickmanus]

Just now, Orinoco said:

17 year old thread. LOL

We were discussing Carlsberg and Chang and what happened about the situation in another thread  . 

   I did a websearch to find out what happened and this thread appeared and I just asked about the outcome.

   Just a coincidence it was on TVF/ASEAN

[Rimmer]

This is a 2004 topic and as such it can be

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