Thailand: Thai Beverage, Chang brewer, is sure of eventual listing

Thai Beverage Plc (ThaiBev), the brewer of Chang Beer, will continue its attempt to list on the Stock Exchange of Thailand and has brushed aside anticipation that it might try to list on either the Hong Kong or Singapore stock markets instead, The Bangkok Post communicated on December 21.

''The Securities and Exchange Commission told us to wait. We'll wait,'' said Kasemsant Weerakun, vice-president for corporate communications. However, Mr Kasemsant said that whether or not ThaiBev was listed on a stock market, it could continue with all its business plans since it had enough cashflow to expand on its own. ''Financial matters are not at all an issue for a company with this level of revenue,'' he said.

ThaiBev, a holding company with 63 subsidiaries and 20,000 employees, earned profits of 10 billion baht last year on sales of 90 billion baht.

Mr Kasemsant also denied the rumour that a 55% stake in the SET-listed Oishi Group, a green-tea producer that controls 70% of its market, was acquired by a representative of the company or its president, billionaire Charoen Sirivadhanabhakdi. ''The person who has purchased the 55% stake in Oishi Group has no relationship with either the company or Mr Charoen,'' insisted Mr Kasemsant.

A group represented by Ma Wah Yan last week signed a memorandum of understanding with Oishi president and founder Tan Passakornatee to buy 55% of the group's shares. Mr Tan has said that more details on the new shareholders would emerge if and when an agreement is signed next month.

ThaiBev has sought to list on the Stock Exchange of Thailand (SET) in what would be the largest initial public offering ever undertaken by a privately owned local company. However, the Securities and Exchange Commission has postponed a final ruling on the listing due to strong protests from religious and social activist groups.

According to market rumours that were circulating last week, ThaiBev wanted to buy into Oishi to seek back-door listing in the SET. Mr Kasemsant denied the rumour, and said, ''We will be listed in SET through the front door, gracefully.''

In the meantime, ThaiBev announced yesterday that it aimed to enhance Thai consumer recognition of the quality of Thai-made liquor

Ueychai Tantha-obhas, managing director of affiliate Thai Beverage Marketing Co, said the company was ready for a ''premiumisation'' strategy to expand into the premium liquor market, aiming to replace imports while increasing its own liquor exports.

In line with the strategy, the company plans to introduce three or four new premium liquors next year. ''ThaiBev aims to release new products at regular intervals, especially products in the premium segment, through the synergy between ThaiBev's expertise and long experience in the liquor industry, and the competence of its foreign liquor subsidiaries, such as Inverhouse in Scotland,'' said Mr Ueychai.

Next year, the company expects to spend about 150 million baht on marketing for liquor products, about the same amount as this year's marketing budget. ThaiBev's best-known products are Mekhong rum, and Sangsom and Crown 99 whiskies. According to Mr Ueychai, his key challenge in expanding into the premium segment is Thai consumer perceptions of Thai-made spirit.

To win Thai acceptance, Mr Ueychai said the quality of the liquor was the most important factor. The company has to first produce good quality premium liquor, followed by marketing activities.

According to Mr Ueychai, one good thing about premium liquor is that its consumers are not as sensitive to price rises as consumers in the economy segment.

Next year, liquor sale prices will rise due to the increase in excise taxes. The tax rises will effect sale growth of the overall brown-liquor market, which is expected not to exceed 8%, while this year's growth rate is up to 12%, he said.

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