Carlsberg sees huge potential in Thai beer market

[webfact]

Carlsberg sees huge potential in Thai beer market
by Frederik Guy Hoff Sonne



BANGKOK: -- Carlsberg Group reintroduced its brand to the Thai market in 2012. Now the Danish brewing company hopes to rise in to a beer head position on what they recognize as one of the most promising markets in ASEAN.

“Thailand is a very important market for the Carlsberg Group. The beer market is extremely large and Thai consumers enjoy all sorts of beers, from local brands like Leo to more expensive super-premium brands that you now see in upscale bars and restaurants.” says Kabir Saluja, general manager of Carlsberg Thailand, in an interview with the Nation.

According to a Euromonitor market research the beer market in Thailand is set to decline in terms of total volume in the coming years due to the high household debt that plays a negative impact on consumers economic confidence. But Thailand is still a huge market and the thirst for beer might turn if the household debt betters in the future. The short-term cloudy forecast won’t stop Carlsberg in making long-terms investments.

“The Carlsberg Group will continue to invest in Thailand and we believe the alcohol and beer markets will start to show promising growth, especially in the super-premium beer segments. Our plans are to use our portfolio to gain leadership positions in these segments.” says Saluja.

The so-called super-premium beer is the more exclusive beers that goes beyond a normal lager and Saluja mentions newly introduced Kronenbourg 1664 – the best-selling French beer in the world – and Beerlao as some of the companies flagship products in the super-premium category.

Another category that Saluja sees a succesful market for is the draught beer:

“We have also seen positive signs with increasing draught beer volumes around pubs and beer gardens in Bangkok and other key cities.”

“Draught beer in Thailand is very important. We believe it gives consumers a real taste of what great quality beer is. In the previous year alone, we have seen our draught beer volumes grow more than 20 per cent and we will continue to be aggressive with our draught agenda because we believe consumers enjoy this extremely great-tasting beer.”

Foreign beers are common in Thailand but it’s a surprisingly difficult market to penetrate. Thai government seeks to shelter its domestic breweries through the imposition of import duties and all imported beers must bear an import sticker on their bottle caps. The indicators of a hard sheltered market are evident. Singha Corporation leads the market with a 72 percent share and Thai Beverage seconds with 24 percent share. Heineken – the third largest brewer in the world – only holds 4 percent.

But of course there’re other ways around the market than simply exporting. Singha beers are being produced in Carlsberg’s Russian plant for distribution and Lao Brewery Company, that produce the popular Beer Lao, is partly owned by Carlsberg (50%) and the Laos government (50%). Carlsberg already has a solid foothold on the Thai market and the ASEAN market overall.

“In mainland Southeast Asia, the Carlsberg Group enjoys a strong leadership position. We are market leaders in Laos with Beerlao the local power brand, in Cambodia with Angkor Beer, and in Vietnam with Huda.

We have recently begun our participation in Myanmar, with the Carlsberg brand playing in the premium beer segment and Yoma the local beer brand.

With the Asean Economic Community taking full affect, we see more opportunities for these brands being enjoyed across the region, as you can already see Thai consumers enjoying Beerlao – and vice versa, the Singha and Leo brands being offered across the region in Cambodia and Laos.” Saluja explains.

Carlsberg is the 5th largest brewery group in the world. The company entered the Asian market when it started to export beer to China in 1876.

Source: http://scandasia.com/carlsberg-sees-huge-potential-in-thai-beer-market/


-- (c) Copyright Scandasia 2016-07-21

[baboon]

I wouldn't have thought Thai beer drinkers would be much interested in 3.5% piss that wouldn't get a fly high. Do they put more alcohol in it here?

[piersbeckett]

I wouldn't have thought Thai beer drinkers would be much interested in 3.5% piss that wouldn't get a fly high. Do they put more alcohol in it here?

Yeah, it's 5%

[The stuttering parrot]

They mustn't have it the memo from the junta about their stance on alcohol.

[55Jay]

I tried it here one or twice. It's alright.

[Bung]

" The beer market is extremely large and Thai consumers enjoy all sorts of beers, from local brands like Leo to more expensive super-premium brands that you now see in upscale bars and restaurants"

What about the majority of restaurants? How many times to you go into a restaurant and ask what beer do they have only to be told the same old story

"Leo, sing, Chang, Heineken" that's it 90% of the time. It's like they are not allowed to offer something else or those Thai consumers don't give a toss for anything different.

[vogie]

Competition has to be a great thing, same old tasteless rubbish they serve here.

[halloween]

" The beer market is extremely large and Thai consumers enjoy all sorts of beers, from local brands like Leo to more expensive super-premium brands that you now see in upscale bars and restaurants"

What about the majority of restaurants? How many times to you go into a restaurant and ask what beer do they have only to be told the same old story

"Leo, sing, Chang, Heineken" that's it 90% of the time. It's like they are not allowed to offer something else or those Thai consumers don't give a toss for anything different.

Perhaps the owner stocks those labels that sell well - I would.

BTW Beer Lao is super-premium???

[Winniedapu]

Not much of an opening for Carlsberg I suspect. The concessions already been given and paid for.

Two's company but three...

Winnie

[steelepulse]

Not much of an opening for Carlsberg I suspect. The concessions already been given and paid for.

Two's company but three...

Winnie

Therein lies the problem. These companies have a stranglehold on beer production and certain people in their pockets to ensure the barrier to entrance into the market is too high for anyone else to have a fair shot.

Anything foreign gets the **** taxed out of it, yet the rock gut lao daeng and lao kao are allowed to prosper to get the general public in a state of intoxication so as to not want to buck the system.

It's rigged I tell ya, rigged.

[sahibji]

in a price conscious market penetration of

imported beers is more difficult due to higher

cost factors.

and beer is beer unless you are a connoisseur.

beer drinking like teas is a personal choice.even the ceaper

CHEERS is not a bad beer.

[55Jay]

Not much of an opening for Carlsberg I suspect. The concessions already been given and paid for.

Two's company but three...

Winnie

Therein lies the problem. These companies have a stranglehold on beer production and certain people in their pockets to ensure the barrier to entrance into the market is too high for anyone else to have a fair shot.

Anything foreign gets the **** taxed out of it, yet the rock gut lao daeng and lao kao are allowed to prosper to get the general public in a state of intoxication so as to not want to buck the system.

It's rigged I tell ya, rigged.

I would ask if you would like some cheese with your whine but, that's taxed to hell and back too!

[anon467848]

Have Carlsberg learned their lesson from their previous venture in Thailand?

The Danish brewer, which also sells brands including Tuborg and Kronenbourg 1664, has stumbled in Thailand before. A joint venture formed in 2000 with Chang Beverages Pte, owned by Charoen, failed to develop as planned and led to Carlsberg removing executives representing Charoen from the board of Carlsberg Asia in 2003. Carlsberg said at the time it was “not happy with the value” of assets Chang wanted to add to the joint venture. The dispute ended in 2005 with Carlsberg paying $120 million to divide their assets and settle a legal dispute.

[Broken Record]

The drug trade is very lucrative, all the big players want a slice of the action.

[JoePai]

in a price conscious market penetration of

imported beers is more difficult due to higher

cost factors.

and beer is beer unless you are a connoisseur.

beer drinking like teas is a personal choice.even the ceaper

CHEERS is not a bad beer.

You made 2 nonsensical comments -

1 beer is beer unless you are a connoisseur.

2 CHEERS is not a bad beer.

Sir, I urge you to reconsider

[DrTuner]

Round 2 with ThaiBev coming up? Didn't end so well last time.

[waldroj]

Need to seriously rethink your marketing strategy.

1. Start selling water, and advertise it big time under the Carlsberg label.

2. Get your sponsorship deal back with Liverpool.

3. Sponsor a local football team.

Then, and only then, reconsider trying to sell your beer here.

[baboon]

" The beer market is extremely large and Thai consumers enjoy all sorts of beers, from local brands like Leo to more expensive super-premium brands that you now see in upscale bars and restaurants"

What about the majority of restaurants? How many times to you go into a restaurant and ask what beer do they have only to be told the same old story

"Leo, sing, Chang, Heineken" that's it 90% of the time. It's like they are not allowed to offer something else or those Thai consumers don't give a toss for anything different.

Perhaps the owner stocks those labels that sell well - I would.

BTW Beer Lao is super-premium???

Can you think of any drink that isn't super premium compared with Lao Khao with the possible exemption of meths?

[BestBitterPhuket]

Carlsberg should stay away. Its enough terrible cheap lagers available, such as Singha, Leo, Chang, Tiger, San Miguel etc. AND Carlsberg is worse than any of them.

Why cant the powers that control Thailand, allow quality beer to be brewed here, not only the cheap beers?

[sandyf]

Have Carlsberg learned their lesson from their previous venture in Thailand?

The Danish brewer, which also sells brands including Tuborg and Kronenbourg 1664, has stumbled in Thailand before. A joint venture formed in 2000 with Chang Beverages Pte, owned by Charoen, failed to develop as planned and led to Carlsberg removing executives representing Charoen from the board of Carlsberg Asia in 2003. Carlsberg said at the time it was “not happy with the value” of assets Chang wanted to add to the joint venture. The dispute ended in 2005 with Carlsberg paying $120 million to divide their assets and settle a legal dispute.

The good old days when 'Castleberg' was one of the front runners.

[lj cm]

Any place to get Carlsberg draft beer here in Chiang Mai?

PS! The joint venture with Chang started already in the beginning of the nineties.

[Winniedapu]

Have Carlsberg learned their lesson from their previous venture in Thailand?

The Danish brewer, which also sells brands including Tuborg and Kronenbourg 1664, has stumbled in Thailand before. A joint venture formed in 2000 with Chang Beverages Pte, owned by Charoen, failed to develop as planned and led to Carlsberg removing executives representing Charoen from the board of Carlsberg Asia in 2003. Carlsberg said at the time it was “not happy with the value” of assets Chang wanted to add to the joint venture. The dispute ended in 2005 with Carlsberg paying $120 million to divide their assets and settle a legal dispute.

The cost of a concession, both the initial price and the on-going percentage, includes protection against incoming competition. That's how it works.

Winnie

[Winniedapu]

Carlsberg should stay away. Its enough terrible cheap lagers available, such as Singha, Leo, Chang, Tiger, San Miguel etc. AND Carlsberg is worse than any of them.

Why cant the powers that control Thailand, allow quality beer to be brewed here, not only the cheap beers?

The profit lies in numbers. It has to be cheap so lots of Thais can get legless on the low wages they earn. I doubt Carlsberg would get rich on catering to the hi-so, Chang and Leo can't.

And unfortunately, cheap beer doesn't taste wonderful, though I've enjoyed a few Leos. Can't stomach Chang though or the politics of the makers.

Winnie

[alien365]

Competition has to be a great thing, same old tasteless rubbish they serve here.

Somebody here must introduce a dark beer, Lao did it and it is good...BUT, perhaps the locals here cannot deal with taste...I think that may be the case. After all, folk here drink whiskey in a half pint glass, job to see the whiskey, then topped up with soda, then ice, them water...What the _____is that......WATER......

Adding a drop of water or two to a nice single malt is fine but most whiskeys here are blends.

[ravip]

"Leo, sing, Chang, Heineken" that's it 90% of the time. It's like they are not allowed to offer something else or those Thai consumers don't give a toss for anything different."

Strange comment. Why should NOT Thai consumers give a toss for anything different? Should they acquire YOUR tastes? Do they offer Leo, sing, Chang, Heineken in your country?

Time to learn that there are different types of humans around this world that like differnt stuff to what you like.

[Alive]

As I remember it Chang screwed Carlsberg in the Thai way or at least that's the way it came out in discussion back then. Thailand has plenty of room for more choices. Chang was nothing before compared to Singh but now has it passed Singh. Personally, I'm up for more choices. I tried that Phuket beer they sell at Big C and it was a refreshing change form the Chang and others. These days I am not much of a drinker. I like draft beer when I can get it. The Londoner had some good homemade stuff. Looking forward to Carlsberg. I'll tell you what I think of it after I try it again.

[IAMHERE]

in a price conscious market penetration of

imported beers is more difficult due to higher

cost factors.

and beer is beer unless you are a connoisseur.

beer drinking like teas is a personal choice.even the ceaper

CHEERS is not a bad beer.

If my pay was 300 baht a day I'd be price conscious as hell.

I didn't know Leo was a local beer, thought it was everywhere in Thailand.

[nakhonandy]

As I remember it Chang screwed Carlsberg in the Thai way or at least that's the way it came out in discussion back then. Thailand has plenty of room for more choices. Chang was nothing before compared to Singh but now has it passed Singh. Personally, I'm up for more choices. I tried that Phuket beer they sell at Big C and it was a refreshing change form the Chang and others. These days I am not much of a drinker. I like draft beer when I can get it. The Londoner had some good homemade stuff. Looking forward to Carlsberg. I'll tell you what I think of it after I try it again.

I think you will find that Singha are still number one and by a long way.

The Company are pretty well impregnable to the others.

[khunken]

Now if Guinness was brewed locally instead of in Malaysia that would be a real story.

Nothing against Carlsberg but it's just another ordinary beer.

[PatOngo]

One Tambon, One Product

One Car, One Carton