Thailand’s first craft beer festival: the tipping point of the industry?

[Lite Beer]

Thailand’s first craft beer festival: the tipping point of the industry?
By Cole Pennington

This weekend Thailand is holding its first ever craft beer festival.

Of course small enclaves of beer geeks having been holding their own little festivals for nearly a decade, drinking smuggled brews from all over the world in secret, but this weekend marks the first time all the kingdom’s major craft importers have joined forces and collectively organized what will probably become the first of many festivals—hopefully.

The fact that there are enough importers to now to come together for a large-scale(if you can call it that) craft beer festival signals a shift from what used to be a supply driven market where one or two importers dictated what brews we enjoyed(and we’re glad they did!), to what possibly could be a demand-driven market where there’s enough room for more than a handful of distributors to bring in different brews from around the globe. This is surely a monumental occasion for Thailand’s craft beer community.

Read more: http://bangkok.coconuts.co/2013/08/01/brews-bangkok-get-your-drink-weekend

-- Coconuts Bangkok 2013-08-01

[Stradavarius37]

Frankly - instead of importing, there needs to be more LOCALLY produced craft beers. But as I understand it, there is a ridiculous 10 million baht licence to be able to do that - which is too much. So we have to pay too much for imported brews....

[chrisbacke]

There's still a long haul to go. I don't know enough about Thai's craft beer scene, but Korea's came a long way in the span of five years. The requirements there all but ensured only the biggest manufacturers were legally entitled to licenses - something that's only changed as some requirements have been relaxed and more imports have arrived (thank you, FTA!)...

With that said, it's a welcome change - just wish it weren't so expensive.

[ronrat]

Taking the piss with 240 baht for a beer.

[kingstonkid]

Taking the piss with 240 baht for a beer.

Is that not what you do a few minutes after you have rented the liquid.

[andrewrooney]

The problem is taxes

Import beers? Big import taxes.

Local microbrews? Won't happen because of the massive taxes to startup.

Looks like we're stuck with ThaiBev and Boonrawd for the time being.

[Ticketmaster]

They'll be no tipping point for Thailand on this unless there is a revolution first. The 10 million baht license mentioned above is not "ridiculous." It is a deliberate scheme to protect the uber wealthy Thai family cartel that controls 95% of all alcohol in this country. Frankly, I don't see the uber wealthy in Thailand just giving up their monopolies unless their heads roll first. Ask your self why there was no change in the retail rice of Australian wines when they became a part of the free trade pact last year? That money went from tax to the pockets of the liquor monopoly with no benefit to the Thai people. No competition.

Ask yourself why a Brother printer costs exactly double here than it costs in Australia? And do not say import duties, because all those printers come from China and Thailand has a free trade pact with China that has bee effective since January 1, 2012 (Asean China Free Trade Agreement). It's because one family holds the Thai distributorship for Brother and they set the wholesale price at whatever they think the traffic can bear.

If the average Thai people ever really become aware of what goes on here, the shit's going to hit the fan and it won't just be yellow and red. Of course, Thais wouldfirst have to learn English first so they could have an idea bout what is going on in the rest of the world and I don't see that happening any time soon.

Have a beer.

[kerrysum]

Sorry....

But Thailand needs to wake up to reality........

The taxes only hurt their ability to move ahead....

Been that way for years.......

Remember that street will go in two directions,

as other Asian countries move ahead,

I think they will be caught with their panties down.....

kilosierra

How about this ideal?

Your taxing policy only hurts the LOS,

My dreams for years?

To improve the quality of life for the Thai people......

Yes we want you to succeed.....

But somehow? your corruption pre-empts the desires of your people......

Have a nice day!!!!!!

[Stradavarius37]

They'll be no tipping point for Thailand on this unless there is a revolution first. The 10 million baht license mentioned above is not "ridiculous." It is a deliberate scheme to protect the uber wealthy Thai family cartel that controls 95% of all alcohol in this country. Frankly, I don't see the uber wealthy in Thailand just giving up their monopolies unless their heads roll first. Ask your self why there was no change in the retail rice of Australian wines when they became a part of the free trade pact last year? That money went from tax to the pockets of the liquor monopoly with no benefit to the Thai people. No competition.

Ask yourself why a Brother printer costs exactly double here than it costs in Australia? And do not say import duties, because all those printers come from China and Thailand has a free trade pact with China that has bee effective since January 1, 2012 (Asean China Free Trade Agreement). It's because one family holds the Thai distributorship for Brother and they set the wholesale price at whatever they think the traffic can bear.

If the average Thai people ever really become aware of what goes on here, the shit's going to hit the fan and it won't just be yellow and red. Of course, Thais wouldfirst have to learn English first so they could have an idea bout what is going on in the rest of the world and I don't see that happening any time soon.

Have a beer.

The 10 million baht fee IS ridiculous - because is my opinion, and I hold it to be so. You explaining "why the fee exists" does not make the fee any less ridiculous - you gave an explanation. A judgement is an entirely different thing. .. And for printers, by an HP - they are cheap and last a long time. I've had my HP Laserjet 1018 for 5 years and it costs 3,000 baht lol.

[IsaanUSA]

The tipping point is the AEC. Free trade, right?

[theDukes]

 

Frankly - instead of importing, there needs to be more LOCALLY produced craft beers. But as I understand it, there is a ridiculous 10 million baht licence to be able to do that - which is too much. So we have to pay too much for imported brews....

 

As I understand the regulations, and I have done a lot of research into it, the requirement is a 10 million Baht company. A little different than a license that cost 10 million Baht. Some Thai companies are fully funded and some are not. There is a hefty excise tax on the beer produced and a minimum amount that is required to be produced each year. There is also more taxes paid on a 10 million Baht company than a 1-4 million Baht company. I'm can't recall what the cost of the license is.

[theDukes]

That being said The Duke's is running a special in Chiang Mai on a few of the beers from Beervana. 150 Baht a bottle for the month of August.

[GrantSmith]

Ask your self why there was no change in the retail rice of Australian wines when they became a part of the free trade pact last year? That money went from tax to the pockets of the liquor monopoly with no benefit to the Thai people. No competition.

Liquor monopoly? I'll let you in on a little secret... In the wine segment, there's definitely no monopoly...

A lot of the wine won't go into retail because the price will get bastardised the same way it does back home.

Price and brand integrity are big things for the wine industry.

And from an importer or distributors point of view, there's not a lot of money to be made by selling to retail, unless you own the retail arm.

Look at Central as an example, they import one of Australia's most iconic wine brands - d'Arenburg - this brand is completely in the retail market, with little, if any trade presence.

This would be driving d'Ary Osborn crazy!

You will start to see more of the good stuff in the trade areas e.g hotels, bars and restaurants over the coming months and years. The excise tax - sitting at 60% - is the biggest grievance for importers. You then add in the provincial tax (10%), VAT (7%) and the health tax (2%). Currently Australian wine also attracts an 8% import tax, which by comparison to the rest of the world is pretty small, but nevertheless an unwanted burden for a while.

If that excise tax were to be even halved, you would see an even bigger presence of high quality Australian wines.

[nami]

Good news and comments. Have any of you guys ever been in German Brewery Tawandaeng? They produce some nice beers and have a nice show too (at least I like). Even with those kind of beers there is always the occasional Thai putting ice in it lol

[TheSpade]

So how was the beer festival? All this talk about it being a good thing...surely someone went?

I was too hungover from my own personal beer festival the night before to attend.

[planr]

So how was the beer festival? All this talk about it being a good thing...surely someone went?

I was too hungover from my own personal beer festival the night before to attend.

I was not able to attend, but a good friend said it was packed to the rafters, so I guess that's a good thing?

[andrewrooney]

Good news and comments. Have any of you guys ever been in German Brewery Tawandaeng? They produce some nice beers and have a nice show too (at least I like). Even with those kind of beers there is always the occasional Thai putting ice in it lol

Definitely! I like the beers there quite a bit, probably the best locally made beers I've tasted.

So how was the beer festival? All this talk about it being a good thing...surely someone went?

I was too hungover from my own personal beer festival the night before to attend.

I didn't end up going, my girlfriend and I didn't feel like making the trip down to Suk... but we did pick up some German beers from the Villa Market and have a mini-festival of our own!

[draftvader]

Snuck in a couple of bottles of decent ale from England but I know that Beervana and Wishbeer will be the best I can hope for in a long time. I spent a wonderful month in Blighty drinking staggering ales (mostly British but some American in bottles too) and I am already (2.5 weeks) missing that scene. Since we left England 7 years ago the scene has exploded again. The local to my old house was a place I would never go (was on a rugby drinking tour of Twickenham one evening, 4 of us walked into the place and the regulars started giving it aggro though they calmed down when another 4 joined us) but now it is a stunning real ale pub with around 15-20 on tap and plenty of range in the bottled behind the bar too....good food to boot.

CAMRA is winning the day there now and almost every pub has an ale of some description on tap (London Pride of Shephard Neame Spitfire at least) to ensure they don't alienate a growing crowd. Ah the joys of a free economy coupled with the ability for people to make their own decisions.

Do we think much will change here? Beervana and Wishbeer are doing great things but I fear that locally brewed specials remain the domain of the enthusiast with too much money. The temperatures here mean that real beer brewing needs continual cooling except in a very small number of locations. That said there is no excuse for the poor quality of the "lager" offerings in Thailand being that their neighbours all seem to be able to put something palatable together!

[IsaanUSA]

AEC man. More beers coming (somewhat) soon!

[draftvader]

AEC man. More beers coming (somewhat) soon!

Yep, that will help a little. The situation is, without doubt, GREATLY improved upon what is was 1-2 years ago. Beervana and Wishbeer are just god-like by my money. There is still a LONG way to go for those that miss real beer in real casks tapped properly, but I am not ungrateful for the Wishbeer delivery and costs. Well done those people!

I'm just smarting a little having spent a month in England with award winning Real Ale pubs within walking distance of both my Mum and Mother-In-Law (not too bad a mother-in-law, she always gets a carry out if I can't go!).