E-Malt.com News article: 2023

Thailand: The arrival of Interbrew NV as it is known in Thailand, upset the local brewer very much. The market isn't what it was a couple of years ago, luchtzak.be reported on January 11. Then it was said: Competition in the local beer market may intensify as Belgian brewing giant Inter-brew, the world's second largest beer maker, prepares to enter the Thai market through a joint venture with Boonrawd Brewery. That was last year...

Boonrawd markets the Singha and Leo beer brands, while its rival markets Chang and Carlsberg, the latter in a joint venture. Interbrew and Carlsberg are competitors on the global market. For Interbrew, the deal will give the company a greater foothold in the Thai market, which has greater growth potential than more mature markets. "It's a good thing for them," said KBC Securities analyst Marc Leemans said. "It exposes them to emerging markets and to the growth there."

The Belgian brewer is in the midst of an ambitious expansion programme. Last year 2002, it bought Beck and Co, the producer of Germany's No 1 beer export. The German subsidiary's Kloster brand has been marketed in Thailand for several years.

An Interbrew company spokesperson confirmed the company had begun negotiations to form a joint venture with Boonrawd, and expected to finalise the venture before the middle of the year 2003. Interbrew is the world's second-largest brewery by sales volume, with brands such as Stella Artois. Intebrew's biggest Asian market is currently South Korea, but Asian sales account for little more than 5 per cent of its total sales.

Belgian brewer Interbrew NV said it had reached an agreement with Boon Rawd Brewery to license Kloster beer in Thailand. Boon Rawd will have the right to produce, distribute and market Kloster in Thailand. The deal is the result of "a long-standing and excellent relationship between Interbrew and the Bhirom Bhakdi family, owner of the Boon Rawd Brewery," said Interbrew chief executive Hugo Powell.

Boon Rawd president Santi Bhirom Bhakdi said the two companies could also explore "other venture opportunities", in the region.

Charoen, who owns Beer Thai (1991), producer of Chang beer, was also in talks to take over Thai Amarit Brewery. Thai Amarit makes Kloster beer. Charoen wanted to use Kloster, which is positioned in the premium-beer segment, to compete directly with Heineken. Charoen also operates Carlsberg beer of Denmark, which is also in the premium-end segment.


13 January, 2004