Carabao Group takes dim view of alcohol control bill
Carabao Group views the new alcohol control bill, which features more stringent regulations for ads, as potentially hampering new players in the alcoholic beverage market.
The beer market in Thailand may be flat this year because of decreased consumer purchasing power since the pandemic, said Sathien Sathientham, chief executive of Carabao Group.
The pandemic had a negative effect on middle and low-income earners, decreasing their income, and the economy has not rebounded for these people, he said.
The beer market in Thailand was valued at 260 billion baht in 2023, making it the largest segment within the alcoholic beverage market.
A new liquor bill from the Public Health Ministry would impose tighter controls on alcohol-related advertisements, while three other bills from the public sector are now being considered by the House of Representatives.
“The law on alcoholic beverage ads should be relaxed. It has severe penalties and interpretation depends on the discretion of the authorities,” Mr Sathien said.
“I have never seen a country with such strict laws for alcoholic beverage ads as Thailand. The law is unfair and inconsistent with the country’s economic development. Newcomers cannot survive in this business as the law is too strict. The law should provide opportunities for competition, opening up room for newcomers.”
He said given minimal competition in the Thai beer market, there has been no development of the industry.
“Stricter alcohol laws will make competition more difficult,” said Mr Sathien.
“And I don’t believe this law will reduce the number of boozers.”
Carabao Group launched five beer variants through two brands — Carabao and Tawandang — catering to a wide range of consumers across demographic groups.
Both are deemed “economy” brands, which represent up to 95% of the beer
‘‘ I have never seen a country with such strict laws for alcoholic beverage ads as Thailand. SATHIEN SATHIENTHAM Chief executive, Carabao Group
market, he said.
“I’m confident launching 4-5 products with an appropriate strategy will work. If we launched just one type of beer, our product might be blocked by competitors,” said Mr Sathien.
The company faces the challenge of limited points of sale compared with other players, he said.
The product is distributed through modern trade channels such as Lotus’s, Gourmet Market, Tops, as well as on-premise channels, including restaurants, pubs and bars.
Carabao Group aims to achieve a 10% market share this year, eventually establishing itself as a top three player in the beer market, said Mr Sathien.