Monks say down with Beer Chang

[MaiLuk]

This cost somebody $1 billion???? - ML

 

 

 

World - AP Asia

 

 

Thai Beer Stock Listing Defeated

 

Wed Mar 23, 2:44 PM ET World - AP Asia

 

 

 

BANGKOK, Thailand - About 5,000 people, including 500 Buddhist monks in saffron robes, converged on Thailand's stock exchange Wednesday to celebrate their success in blocking the listing of a beer company.

 

 

AP Photo

 

 

 

The Stock Exchange of Thailand announced on Monday that it would postpone indefinitely a decision on whether to allow the listing of Thai Beverage PCL, the country's largest beer and liquor maker.

 

 

The action came after strong opposition to the listing from various social groups on the ground that promoting alcohol consumption is against Buddhist, Islamic and Thai beliefs.

 

 

Last Friday, about 2,000 monks gathered outside the exchange to protest the proposed listing of the company, which brews top-selling Beer Chang, or "Elephant Beer."

 

 

Organizers of the anti-listing campaign, who claimed the backing of 128 anti-alcohol groups from all over the country, said they gathered Wednesday "to express gratitude to the board of the Thai Stock Exchange."

 

 

Cheap and potent, Beer Chang is especially popular with rural drinkers. The beer company, owned by liquor tycoon Charoen Sirivadhanabhakdi, hoped to raise up to $1.04 billion through its initial public offering, which would have been the biggest in the Thai market's history.

[Guest]

A few comments.

 

First, you will notice the government is taking a very ambivalent view on the whole thing. Instinctively, they are in favor of the listing because (and I agree) they want to increase market capitalization and Khun Charoen is big behind-the-scenes supporter of TRT. But public sentiment is strong, and this government has learned the value of pandering to public sentiment, even when it is probably short lived and ill conceived.

 

Second, the main problem in Thailand with alcohol - which hardly gets mentioned in the papers - is the odd and very untransparent way they tax alcohol here. Here is an example, a large bottle of Heinken costs 65 Baht at my local market, while the same sized bottle of Beer Chang is 37 Baht and has more alcohol.

 

Most of the price difference can be attributed to tax, and that tax is primarily based on the underlying cost of production. Making matters even more silly, the Revenue Department's assessment of the cost of production is discretionary (you can imagine the sort of incentives this creates). Putting aside the financial incentives for the people who make this assessment, the policy in general discourages people from drinking high end low alcohol drinks and encourages people to drink low quality high alcohol drinks. TIT

[Flashermac]

1. Monks have no business getting involved in politics! Something suspicious is going on here.

 

2. Is Boonrawd Brewery listed on the stock exchange? Bet it is.

 

3. << the policy in general discourages people from drinking high end low alcohol drinks and encourages people to drink low quality high alcohol drinks. >>

 

The ordinary working class Thai man WANTS strong beer. The idea is to get drunk as quickly as possible for the least amount of money. Why do you think Chang is as strong as it is. And there is an even stronger cheap brand -- Thai beer. Tell me if they didn't do that intentionally.

[Guest]

The ordinary working class Thai man WANTS strong beer. The idea is to get drunk as quickly as possible for the least amount of money.

Certainly true, and not just in Thailand.

 

I think I have established here that I am not a big fan of government intervention to solve perceived social ills, but if there is going go be intervention, it should be done in a rational fashion. Thailand comes in number 6 in the world in terms of alcohol consumed per capita, and the numbers have shot up dramatically over the past 4 years. Thai voters, particularly the more conservative segment, have noticed this, and expect the government to do something about this.

 

But the government is in an awkward position. The dramatic increase in alcohol consumption coincides with the government's New Social Order. One could argue - and I would - that just like prohibition provided the US with more alcoholics and gangsters, the New Social Order has also added to Thailand's problems.

 

Making matters more awkward, one of the current government's biggest supporters has profited tremedously from Thailand's highly protected liquor industry. The tax regime imposes low taxes on high octance poor quality alcohol and very high taxes on lower alcohol quality beverages, particularly anything imported. Where people want to get drunk quickly and cheaply, this will have an obvious effect on their choice in beverages and the wealth of those who benefit from Thailand's highly protected liquor industry.

 

But instead of addressing the situation in a rational fashion - or at least the way most countries do: by basing tax on alcohol content - the government has imposed all sorts of silly rules. For example, the rule banning the sale of alcohol in the afternoon. I am sure that has done alot to reduce alcohol consumption. ::

 

Although this rule obviously does nothing to correct the problem, it does give the government something they can point to and say we are trying to solve the problem, while not harming political allies. I think there is genuine frustration in conservative circles with the high level of alcohol consumption in this country, but political obligations make it impossible for the government to address the issue in a rational fashion. Hence, expect more silly gestures, rules and grandstanding.

[sayjann]

i had forgotten about the after ban on alcohol.

is it still in force? and if so between what times is the ban enforced?.

does this mean i will be out of luck if i try to get a Beer whilst in BKK in the Afternoons?.

is this restriction also in force on Phuket?.

 

interested to know what the situation will be like when i arrive.

thanks..........

[Flashermac]

I doubt if many restaurants follow the no 2 PM to 5 PM alcohol sales. Even in shops, it is hit or miss. The grocery near me follows the rule strictly. So does the local Tesco-Lotus, which even goes by the clock on the cash register. (They made me wait 2 minutes one day before ringing up my beer, after punching in all of the other items.) But the Seven Elevens pay no attention to the rule. (A pay off maybe???)

 

The idiotic "law" is a decree by a "revolutionary council" after a military coup decades ago. Since when are decrees from defunct dictatorships accorded recognition as laws?

 

Also, Malaysia, which is a Muslim country, does not have such nonsense. A bit of a puzzlement right there.

 

p.s. I notice that Asahi beer is suddenly gone from the Tesco-Lotus. But a new Blue Ice beer (6.4) is on the market now, supposedly made by San Miguel.

[sayjann]

so what's going on in places like the Beergarden?.

let's say i visit Edens and leave at 3pm and decide to walk around the corner and just chill out.

is drink available if i just want to sit down and read the paper?.

[Guest]

Interestingly, they stepped up the raids again. At Q Bar last night about 8 MiBs came charging up the stairs as I was leaving. I heard later that instead of locking down the place and forcing everyone to submit to a urine test, they selected individuals for tests. Maybe someone realized that the lock down approach isn't good for Thailand's image or tourism.

 

I know a new "war on drugs" was announced before the Thai Beverages" brouhaha, but I can't help wondering if some of the dramatic events I saw on Thai TV today were intended to appease (and divert) the social conservatives.

[chelseafan]

Gadfly, maybe the underlying factor on the difference between Chang and Heineken is that one is a Thai Beer (albeit probably brewed by Heineken) and the other is a "foreign" beer....could be wrong....