Thailand: Carabao Group preparing to produce Tsingtao beer in Thailand

SET-listed Carabao Group Plc is preparing to produce Tsingtao beer as an original equipment manufacturer (OEM) in Thailand, The Bangkok Post reported on November 14.

Sathien Sathientham, chief executive of Carabao Group, said the company has partnered with Tsingtao Brewery and plans to serve as the OEM manufacturer for Tsingtao beer in Thailand, as well as its distributor.

Production is expected to begin in 2026, with Thailand potentially serving as a manufacturing and export base to other countries within Southeast Asia.

The company is also in talks with Tsingtao regarding the distribution of Carabao energy drink products in China, leveraging the Chinese company's strong logistics network. The initial plan is to launch in 2-3 provinces, one being Shandong, while it is also considering a launch in Yunnan province, where Carabao previously had a market presence.

The move could be a strategic effort to diversify risk and tap into new opportunities.

He said the brand is gaining recognition, partly due to its sponsorship of England's Football League Cup, widely known as the Carabao Cup.

According to its 2024 annual report, international sales accounted for about 27% of the company's total revenue.

Mr Sathien said this year's energy drink sales domestically have been strong, with the company becoming the market leader and capturing around 30% of the market share.

He said the territorial tension between Thailand and Cambodia, which resulted in the closure of the border, had impacted the company, as it has been unable to export its products to Cambodia.

Mr Sathien said this situation has heightened nationalist sentiment in both countries. In Cambodia, he observed influencers criticising stores that sell Thai products.

According to its 2024 annual report, Carabao Group entered into a joint venture with partners in Cambodia.

"To mitigate long-term uncertainties regarding product imports, the company has accelerated its plan to build a manufacturing plant in Cambodia, which is now expected to commence commercial operations by the end of 2025," stated a filing to the SET.

He confirmed the manufacturing plant is proceeding as planned, but the firm must determine an appropriate timeline for production and market launch.

"I hope there will be a solution to this issue," said Mr Sathien.