elef Posted December 19, 2006 Report Share Posted December 19, 2006 Bangkok Post Today Link Singha to join race by launching cheap beer Woranuj Maneerungsee Singha Corporation, the country's second-largest beer brewer, is considering launching a low-cost brand next year to cope with the expected intensified competition as a result of the ban on alcoholic-beverage advertisements. "We'll be able to make low-cost beer under a new brand to be sold as low as five bottles for 100 baht next year. But at the end of the day, consumers will drink more beer [because it's cheap] and this will not be good for their health," said president Santi Bhirombhakdi. The ban on ads for beer and spirits has been strongly opposed by local producers and importers, who view it as doing little to help curb alcohol consumption. On the contrary, Mr Santi said, the market was projected to grow by 10% next year compared to 5% to 6% this year as brewers launch a price war to boost sales. The 2007 outlook for the 89-billion-baht market remains uncertain pending the final decision on the ban, which the Public Health Ministry expects to come into force next year. Mr Santi said the new government should fix what he calls an unfair tax structure on alcoholic beverages that has discriminated in favour of white liquor. He proposed that only one method be used to calculate the excise taxes based on alcohol content. The Excise Department now calculates the taxes based on either the ex-factory price or alcohol content, whichever is higher. For beer, the department collects the tax based on the factory price because alcohol content in beer is relatively low at not more than 6%, compared to as high as 40% in cheaper white liquor. But for certain white spirits, the department taxes only 70 satang for each 1% of alcohol per litre, as it treats them as products for low-income people. Singha executives said tax rates, not ads, are largely responsible for the high alcohol consumption rate in the country. The company proposes that the excise tax be raised to as high as seven baht for each 1% of alcohol content in one litre for beer from the current one baht. For other types of spirits, a flat rate between 2.40 and 3.00 baht for each 1% of alcohol content per one litre should be collected. The new rates will not only reduce white-liquor consumption but also generate more income to state coffers because beer will be taxed more. Chutchai Wiratyosin, Singha's marketing director, said that under the company's proposal, only Heineken beer would pay less tax, but that was fine because the whole industry would gain. "If the excise tax for beer is up to seven baht as we suggest, I believe brewers will start brewing lighter beer, with 2-3% alcohol content, which is less harmful for health. And some consumers will stop drinking altogether because it will become more expensive," he said. Link to comment Share on other sites More sharing options...
elef Posted December 19, 2006 Author Report Share Posted December 19, 2006 The Nation Today Link Mongkol fears for alcohol bill Public Health Minister Mongkol na Songkhla is concerned a controversial alcohol control bill will never become law. The legislation hopes to slash alcohol consumption and its associated ill effects. The law would ban alcohol advertising with very few exceptions. However, opposition from manufacturers and a lack of public support now jeopardised its path, Mongkol said yesterday. "It's difficult to enforce the advertising ban not just because of opposition from alcohol companies but also because people still don't recognise alcohol as addictive," he said. The legislation is currently before the Council of State. Once it reviews the bill it goes to the National Legislative Assembly (NLA). The NLA will then send it to a committee for review. "This will take at least two months," Mongkol said. Because the legislative process takes time he is no longer confident this government will be able to codify it before its term ends next year. "If this bill is left pending, I believe it will be ignored and finally abandoned," he said. Mongkol said he did not expect the Council of State to change a ruling that invalidated the Food and Drug Administration's (FDA) comprehensive ban on alcohol advertising. The FDA has sought a review. Mongkol said those the bill aimed to protect had given it the cold shoulder. "They are not eager to welcome the bill despite its intention to protect them and their children," he said. Mongkol said statistics showed 30 people died in alcohol-related road accidents every day. He blamed alcohol for much of the level of crime, too. Drinking often led to unprotected sex that could result in HIV/Aids infection and unwanted pregnancies, he said. Duangkamon Sajirawattanakul The Nation -------------------- Drinking often led to unprotected sex that could result in HIV/Aids infection and unwanted pregnancies, he said. Don't forget other side-effects the weaker dollar, Thaksin's govenment, the tsunami and all other problems in the world.... Link to comment Share on other sites More sharing options...
Roger_Baby Posted December 19, 2006 Report Share Posted December 19, 2006 Hmmm. I thought Singha was a cheap beer. Link to comment Share on other sites More sharing options...
elef Posted December 19, 2006 Author Report Share Posted December 19, 2006 No, Singha is in the same segment as Heineken! Link to comment Share on other sites More sharing options...
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