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Carabao in US?


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Carabao adds a long can

 

Published on Jun 22, 2004

 

Energy-drink bottler Carabao Tawandang Co. will extend its new production line to produce a taller, canned, carbonated version of its beverage within three months, and thereby expand its export product line, its managing director said yesterday.

 

Carabao expects to begin production of the new line at a rate of up to 200,000 cans per day, Sathien Setthasit said.

 

"The product will not be released in Thailand because it's very difficult to convince Thai people to like this kind of product. Hence, it will only be exported to Europe and the United States," Sathien said.

 

Carabao produces the energy drinks in bottles and short cans. The longer can will hold 250 millilitres of the drink, the same as the short can.

 

Carabao sells only bottles in the Thai domestic market.

 

"A committee and I are discussing the wisdom of selling short cans in Thailand, but we are concerned how the change would affect Carabao's image if the package didn't work," Sathien said.

 

The company exports to 17 countries and after six months of exporting under the "Carabao" brand, export revenue accounts for up to 15 per cent (Bt300 million) of total revenue. Revenue last year reached Bt2 billion. The company expects its export revenue to be Bt400 million next year. It expects total revenue to grow by 10 per cent this year.

 

The company last year had an annual marketing budget of Bt300 million. (This budget included the cost of importing new machines to produce the new product line.)

 

Sathien will go to Indonesia to sign a contract with PT Heinz ABC Co. Ltd. to distribute the product there, and expects to start exporting the energy drink in the next two months.

 

Carabao music band, as a partner of Carabaodang, will also be involved in a marketing campaign in the United States. Concerts in four states and the capital (New York, Nevada, Minnesota, California and Washington DC) will be held from July 1 to 15. Other aspects of the marketing campaign are billboards, posters, and handing out product samples. The campaign in the US will target ex-patriate Thai people as well as labourers.

 

Sathien said there are about 150 energy drink brands in the US including local brands and Asian brands from Singapore, Japan and others from Thailand.

 

The company has a plan to setup a company in the United States to run the marketing drive there. Sathien said the new company will initially handle European marketing as well and will consider later whether to create a separate company in Europe down the road.

 

Sathien said the US will be its main overseas target and Indonesia will be its primary target in the region, as Indonesia has a market worth Bt20 billion, or 25 per cent bigger than Thailand’s. As well, energy drinks are already popular in Indonesia. There are about 10 local brands in that country. Energy drink prices there are roughly 20 per cent higher than in Thailand.

 

Sathien said it is possible to translate its slogan "Nak Su Phu Ying Yai" (Great Warrior) into the local languages of the foreign markets to ensure it conveys the same position worldwide.

 

In Thailand, Carabao Tawandang will operate a Bt400 million marketing budget this year. It has a 25 per cent market share of the Bt14 billion total market.

 

According to Sathien, the Thai market is already saturated and could grow only about 3 to 5 per cent each year.

 

Nitida Asawanipont

 

The Nation

 

SAMUT PRAKAN

 

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Note: The company sells the product in Thailand under the brand "Carabaodang".

 

It uses the brand name "Carabao" in the regional and American export markets, and "Red Carabao" in the Middle East.

 

poster at:

http://www.thainewyork.com/images/news/carabao.jpg

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