Beer Price War Brewing As Sales Start To Slow

[george]

Price war brewing as sales start to slow

Facing a drop in consumption, Singha and Thai Beverage are taking off the gloves

BANGKOK: -- The country's Bt89-billion beer market will see intensifying competition during the rest of the year as brewers scramble to maintain sales during a period when consumption is expected to decline.

Consumption is expected to slow the most among low-income earners, the group least protected from economic difficulties.

To maintain sales, Thai Beverage Plc, the maker of Chang beer, is reportedly launching a fierce marketing campaign for its inexpensive Archa beer, which targets the low end of the market.

Archa beer sold to wholesalers and retailers in a bundle with liquors produced by the company.

Starting last month, four or five large bottles of Archa have been selling for Bt100.

Somchai Suttikulpanich, senior deputy managing director of Thai Beverage Marketing Co Ltd, denied a tactical pooling system was being used to push sales of Archa beer to its dealers. It is up to individual dealers for the most part to decide how they want to purchase the company's products, Somchai said.

"We sell our beers to dealers as we normally do," he said.

"It depends on our individual dealers in different locations to use or create any marketing tactics or promotional campaigns to boost sales and achieve sales target set by the company," he said.

Thai Beverage produces more than 1 billion litres of Chang and Archa beers a year at its plants in Wang Noi and Bang Ban in Ayutthaya and in Kamphaeng Phet.

Piti Bhirombhakdi, advertising manager of Singha Corporation, said purchasing power was declining in all segments but the trend would worsen among low-income earners over the next few months.

"Political and economic difficulties, including the rise in oil prices, have led to lower purchasing power for people in all segments," Piti said. "However, the impact on low-income earners will become more severe in the next one to two months as the higher cost of living sinks in."

Piti said that a decline in the purchasing power of low-income people would have a massive impact on the beer market as lower-priced beer accounts for almost 70 per cent of sales. The main brands in this segment are Leo, Thai and Chang.

"We saw 6-8 per cent growth in overall beer consumption in the first six months of this year compared to the same period last year.

"However, we don't expect any growth in beer consumption in the next three months," Piti said.

Sales in the fourth quarter are unpredictable, as the political situation remains hard to forecast.

Singha controls 46 per cent of the market with its Singha, Leo and Thai brands.

Despite the 6-8 per cent growth in the first half, the full-year figure could be flat, Piti said, indicating that consumption could fall significantly.

The market will be flat or grow merely 1 or 2 per cent if the political situation remains unsettled and insecure, he said. Full-year consumption is likely to grow 4 to 6 per cent to Bt91 billion-Bt92 billion, he said. Last year the market expanded 8 per cent.

--The Nation 2006-07-27

[Totster]

LOWER BEER PRICES

Wooo hoooooo !!

totster

[jayenram]

It's all the Thaivisa members who have taken the pledge and given up for 90 days.

Well done lads and lasses!!!!

[Head Snake]

Finally!!!... A News Clipping with relevance and practical application.

[Jai Dee]

It's all the Thaivisa members who have taken the pledge and given up for 90 days.

Well done lads and lasses!!!!

Geez... I didn't think we'd have that much impact on the market...

I'll be stocking up for Christmas...

[Foggy Bottom]

Of course the drop in consumption has nothing to do with the gradual acceptance of the Social Order Policy and punters staying home due to the frequent police raids on licensed premises ..... does it?

[john b good]

Well this is really good news. Goodbye to trying to lose a few kilos though

[hkt83100]

I'll be stocking up for Christmas...

And don't forget October 15th!

[Boomee]

Rejoice,some good news for once.Long live the price war

[Bicko]

Well this is really good news. Goodbye to trying to lose a few kilos though

Good onya John but this should cheer you up a bit mate. My Doctor back in Oz reckons it's not the beer that puts on the weight it's what we have with the beer like BBQ spare ribs, peanuts, chips etc.

Cheers mate. Now you can a couple without a worry!!!!

[PREM-R]

GUESS THE POSTER

"All Thai Beer is Cr*p, I could not drink it if it was free. Where can I buy fresh supplies of "The King of Beers" in Los?"

Sorry no prizes for correct answers

Edited July 27, 2006 by PREM-R

[dr_Pat_Pong]

A pommy bastard perhaps ?

[dr_Pat_Pong]

I'll be stocking up for Christmas...

And don't forget October 15th!

No prior festivities on your calendar ?

[Chang_paarp]

GUESS THE POSTER

"All Thai Beer is Cr*p, I could not drink it if it was free. Where can I buy fresh supplies of "The King of Beers" in Los?"

Sorry no prizes for correct answers

I have not seen Monochaser for a while.

Is on holidays?

[Gary A]

That's interesting. I wondered what was happening when a friend of mine brought me a case of big bottles of Archa. I tried to pay him for it but he said it was only 250 baht so to forget about it. Less than 21 baht per bottle.

[PREM-R]

A pommy bastard perhaps ?

No Sorry Doc. the guy I had in mind is from the Good ole USA and his opinion as to the Zenith of

Beers would "a long-neck Bud"

[Scott]

I didn't know so many people could post so many positive comments so quickly--this probably belongs in the Guiness Book of Records (no pun intended).

[terry57]

i got a top idea which all the formites will love.

since the beer is cheap lets have the annual christmas party now.

all the mods can shout us deciples a top night out for being a bunch of brilliant, talented people and save themselves some coin in the process.

how many backers has my good self got out there ?

[PREM-R]

GUESS THE POSTER

"All Thai Beer is Cr*p, I could not drink it if it was free. Where can I buy fresh supplies of "The King of Beers" in Los?"

Sorry no prizes for correct answers

I have not seen Monochaser for a while.

Is on holidays?

We have a winner

Old Moonchaser has not posted since 4th July (American Independence day), maybe he finally found the fresh supplies of Bud that he so long craved for and now has "The King of Hangovers"

[Darkling]

GUESS THE POSTER

"All Thai Beer is Cr*p, I could not drink it if it was free. Where can I buy fresh supplies of "The King of Beers" in Los?"

Sorry no prizes for correct answers

Looking at where you are from, Surely you don't mean Cobra beer.

[WideWheels]

Good news for tourists. But as the beer price war has been prompted by an expected rise in the cost of living, not such good news if you live in Thailand.

[dezeure]

It's all the Thaivisa members who have taken the pledge and given up for 90 days.

Well done lads and lasses!!!!

Geez... I didn't think we'd have that much impact on the market...

I'll be stocking up for Christmas...

So what did you drink at Soi Cowboy for 90 days? Can't be nam plao

SD

[PREM-R]

GUESS THE POSTER

"All Thai Beer is Cr*p, I could not drink it if it was free. Where can I buy fresh supplies of "The King of Beers" in Los?"

Sorry no prizes for correct answers

Looking at where you are from, Surely you don't mean Cobra beer.

Never seen Cobra Beer, where does it come from? around here we brew Leo and Asahi

[Mali_in_CM]

Head Snake,

I'll drink to that, brother.

[oevna]

That's interesting. I wondered what was happening when a friend of mine brought me a case of big bottles of Archa. I tried to pay him for it but he said it was only 250 baht so to forget about it. Less than 21 baht per bottle.

21 Baht per bottle!?!?! I might have to start lowering my standards.

Cheers,

-oevna

[Prudent_rabbit]

21 Baht a bottle!!!!!!!

How much of that 21 baht is Tax?

[Bicko]

That's interesting. I wondered what was happening when a friend of mine brought me a case of big bottles of Archa. I tried to pay him for it but he said it was only 250 baht so to forget about it. Less than 21 baht per bottle.

21 Baht per bottle!?!?! I might have to start lowering my standards.

Cheers,

-oevna

I am currently working in Aceh in Indonesia and can get 12 big bottles of Leo (Thailand) beer here for the equivalent of 18 baht a bottle.

Heading home to Buri Ram (LOS) on home leave this weekend and will pay about 23 baht a bottle from the local Chinese wholesalers.

Love the stuff and will give it a good nudge.

Still a hel_l of a lot cheaper than in UK or Oz or US and a damned good drop!!!!.

Cheers Bicko

[terry57]

enough talk about the cheep beer please !!!

im getting well and truly dehydrated reading about the lovely amber necter.

im bolting down to my local for a wee drink or a dozen.

who's up for it ?

[drbones666]

My Doctor back in Oz reckons it's not the beer that puts on the weight

How does anyone that stupid get a medical degree?

It's insulin that packs on the pounds by putting the triglycerides into the adipose cell and locking the door afterwards. Keep putting stuff in your mouth that breaks down into carbohydrate and keep the insulin levels up as well as causing insulin resistance you will also keep adding on the pounds of fat.

Anyone who has studied biochem even at the 100 level should know that.

Edited July 27, 2006 by drbones666

[Crash999]

In the immortal words of that great poet and philosopher, Homer:

"Mmmmmm. Beeeeeer. Ooohhhhhh"