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San Miguel beer coming to thailand


whosyourdaddy

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Hi,

 

here is the article:

 

San Miguel buys Thai Amarit brewery

 

 

 

Published on Apr 9, 2004

 

 

 

The entry of San Miguel Corp into Thailand's beer market through its acquisition of Thai Amarit Brewery will intensify the competition that has helped mature the lucrative local beer market.

 

However, the Philippine beer maker needs to overcome many challenges - such as the development of local distribution channels and a supply of bottles - to be successful here, industry players say.

 

"We welcome the competition," said Thanit Thamsukati, adviser to Beer Thai (1991) Plc, manufacturer of Chang beer, which has a 70 per cent share of Thailand's 1.3 billion-litre beer market.

 

"The coming of a new player like San Miguel will help stimulate growth and make the market more lively and exciting," he said, adding that Chang enjoyed sales growth of 25 per cent last year to 1 billion litres.

 

"We expect further growth this year," he said.

 

Thanit said that buying Thai Amarit Brewery was a shortcut into the Thai beer industry.

 

"If they had constructed their own brewery, San Miguel would have needed to spend about two years before production could start, but by acquiring an existing brewery, they can begin production within two months," he said.

 

"San Miguel's only problem is a supply of bottles. I think they will have to import bottles from the Philippines in the initial stages," he said.

 

Chutchai Wiratyosin, marketing manager of Boon Rawd Brewery, manufacturer of Singha Beer, said the biggest challenge for San Miguel would be establishing local distribution channels, which require time to develop.

 

"More than 70 per cent of beer distribution still operates via traditional trade agreements that rely on personal connections and relationships," he said, adding that San Miguel could open its production plant immediately, but they would need more than money to distribute their product successfully in Thailand.

 

San Miguel Corp signed a deal yesterday to buy the assets of Thai Amarit Brewery Ltd for US$102 million (Bt4 billion).

 

The assets include a brewery on a 21.75-hectare property in Pathum Thani, 30km north of Bangkok. It has a capacity of one million hectolitres (100m litres).

 

The Pathum Thani site has around 11 hectares of vacant land available for future expansion. Also included in the deal is Thai Amarit's 2.4-hectare property at Bang Po in Bangkok, which has an existing port facility with access to the Chao Phya River.

 

The deal will allow San Miguel's own beer brands to be sold in Thailand, the fastest growing and largest beer market in Southeast Asia.

 

San Miguel (Thailand) Co Ltd, San Miguel's venture in Rayong Industrial Estate, is involved in the manufacture and distribution of SMC products, including beverages, processed food and snacks. It is also engaged in feed milling. The operations of this company, however, are limited to non-alcoholic beverages.

 

The first phase of this venture involves the construction of a non-alcoholic beverage facility on San Miguel's 15-hectare property in Amata Industrial Estate, about 114km from Bangkok.

 

"Our beer is very famous in the region and we're quite confident we can compete in the Thai market," said San Miguel vice chairman, president and CEO Ramon Ang, at a press conference in Bangkok last month. He said San Miguel held 95 per cent of the beer market in the Philippines and the company expects its beer will offer something different for people in Thailand.

 

San Mig Light is likely to be sold to drinkers in the premium-price end, while San Miguel beer itself is aimed at the mid-range market and Red Horse targeted at drinkers who prefer a high alcohol content. For those who spend the least on their suds, San Miguel is introducing Gold Eagle.

 

Ang said the complete line would hit the local market within two years as the firm develops a dealership system for both its beer and non-alcoholic beverages.

 

Kwanchai Rungfapaisarn

 

 

The Nation

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Gotta be careful! When I lived in Hong Kong, my Chinese friends used to joke that one had to be careful when ordering that beer in certain establishments, like Club Bboss. If you said is wrong, is sounded like "Sendmeagirl" which could be very costly in Bboss :D! I'm told that it happened to them more than once...

 

Cheers,

SD

 

PS - Even tho' pricey, Bboss is fabulous and one needs to visit there one in their life tho'.

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