Beer Shortage?

[CPT]

For about a week, the local 7/11s and Tesco Express have had only a very limited selection of beer, mostly Heineken. Is this somethng that is localized or happening throughout Bangkok?

I don't drink beer very often, perhaps one bottle a week, but when I do I normally go for Chang Export which had seemingly disappeared from 7/11 shelves about a month ago except for cans. The broader shortage seems to be more recent and I am curious as to whether or not it is Bangkok wide and what the cause is.

[mightyharriss]

It is a shortage. After the tax increase on 4th September, the beer companies have stopped bottling beer as anything after that date is liable for the tax increase.. The beer companies are challenging the government as to who should incur the increased taxes whether the distributor, or the breweries themselves.. As a bar manager all I can say is it is making my life extremely difficult.. Importers are also slowing down on release of stock due to the tax increase..

You will find over the coming months import draught beer getting very expensive (by possibly as much as 30%) as the new taxes apply by Litre.

[Psych01]

I too have noticed this, so I asked the lady that runs the little shop where I live in Lat Phrao 101. In her best English, yes she does speak some, she said that it is all to do with the retailers not wanting to buy new stock at present.

I can only assume it is all related to the price increase and them holding old priced stock, therefore coining in on the increase before replenishing. So, charging you the new price for the old stock and when they have no stock they can possibly get a discount on the new price for a baulk buy.

[jbrain]

I think it is just another example of the excellent non existing logistic skills the Thais are mastering

Every one should know that right before a price increase sales will sky rocket, so require some advance ordering.

Edited September 20, 2013 by jbrain

[Psych01]

It is a shortage. After the tax increase on 4th September, the beer companies have stopped bottling beer as anything after that date is liable for the tax increase.. The beer companies are challenging the government as to who should incur the increased taxes whether the distributor, or the breweries themselves.. As a bar manager all I can say is it is making my life extremely difficult.. Importers are also slowing down on release of stock due to the tax increase..

You will find over the coming months import draught beer getting very expensive (by possibly as much as 30%) as the new taxes apply by Litre.

Thanks for that. Makes things a lot clearer. Also runs true to what the lady in my shop was trying to explain.

Back home (UK), this would never happen. Government tax the drinks companies, the drinks companies up there sale price, therefore the retailer ups their price. Easy! TIT.

Edited September 20, 2013 by Psych01

[granuaile]

Here, the local Family Mart has almost nothing but Chang, Red Horse (my favorite completely disappeared)...

However for me is OK as I had decided to lose 34 KG and part of that was cutting out beer and alcohol for the foreseeable future. Even sato jumped at 7-11 from 25 baht to 33 baht... Is OK, saves me a few thousand baht a month, better for my weight and better for my health....

[householder]

Same issue in local 7/11, similar explanation re retailers saying tax/government problems.

[tominbkk]

Could be I am daft, but isn't the amount they are losing in lost sales greater than the tax increase money they would be collecting?

[EvilDrSomkid]

It does look weird at Tesco when the beer aisle is near empty. Just a few boxes of Heineken. At the old price.

Its OK. I have to cut down on drinking, too. Only on Fridays and Saturdays. Besides, I am OK with whisky soda.

[Scrooge]

I'm not so sure the problem is with bottlers or distributors, but rather with the larger retailers. In my neighborhood, the Tesco Lotus Expresses, large Tesco Lotus, Family Marts, and the corporate-owned 7-11s don't have beer on the shelves, but the privately-owned 7-11s, mom-and-pop shops, and all the restaurants usually have plenty (at new prices -- now 55 baht for a large Leo). It's actually kind of funny because in my soi there are two 7-11s and a Tesco Lotus Express clustered close together, and none have beer, but right around the corner in a sub-soi, the beer cooler is full in a privately-owned 7-11.

It feels a lot more like the larger retailers (and/or distributors) are just refusing to replenish. 7-11 played a similar game last year when the cigarette tax was increased, but it didn't do them any good.

[householder]

My local 7-11 now fully restocked on Singha and Leo, but no Chang.

[jbrain]

My local 7-11 now fully restocked on Singha and Leo, but no Chang.

Well at least they're fully restocked on beer then.

[GrantSmith]

It's the beer companies that aren't producing stock. Several hotels I've spoken too have run out of draft beer. Same with wine suppliers.

All to do with the excise tax increase. Nobody knows who's paying what and on what price is being taxed.

The formula now used to calculate the excise tax is complicated to say the least.

Being a taxation accountant would be the highest paid job in Thailand right about now

[hanno]

Stayed in Sathorn last night and the only beer I could track down was Heineken (which I refuse to drink) and Cheers.....

[HoudiniXLogic]

Rangsit's still got a ton of Leo beers, saw it last night and brought a tall boy.

[GirlDrinkDrunk]

Here, the local Family Mart has almost nothing but Chang, Red Horse (my favorite completely disappeared)...

However for me is OK as I had decided to lose 34 KG and part of that was cutting out beer and alcohol for the foreseeable future. Even sato jumped at 7-11 from 25 baht to 33 baht... Is OK, saves me a few thousand baht a month, better for my weight and better for my health....

34 kg is 3 kg short of half my weight.