Thailand: Thai Beverage Plc introduced Singha Light into the market

Competition in Thailand's beer market is growing more frothy with the introduction of light beers by brewers seeking to expand their shares, Bangkok Post commented on March 18. Just a week after the launch of Chang Light by Thai Beverage Plc (ThaiBev), Singha Corporation, formerly known as Boon Rawd Brewery, on March 17 introduced Singha Light into the market.

The two rivals say they are looking not only at strengthening their beer brand portfolios, but also at creating a new segment for drinkers who prefer lower alcohol content.

Singha Light has 3.5 percent alcohol content and Chang Light 4.2 percent, compared with 6 percent of more for the companies' mainstream brands. Prices of the two brands vary de dhpending on retail outlets but Singha quotes 20 baht for a 330ml bottle while Chang quotes a maximum of 30 baht.

Singha expects its new product to appeal to consumers aged between 23 and their mid-thirties, especially new drinkers and women.

Piti Bhirombhakdi, advertising manager of Singha Corp, said the company began developing Singha Light in 2004 and had tested it extensively among beer drinkers in Las Vegas, Los Angeles, New York and London.

Singha Light is positioned as a flagship export product, especially for the United States which is already a major market for the 73-year-old brewer. Singha expects its international shipments this year to reach 50 million litres, more than double the 22 million litres exported last year.

Currently, Singha Lager is sold in through than 3,000 Thai restaurants in the United States. Because of its 6 percent alcohol content, it is not allowed in retail stores in some US states that have alcohol-content limits on products sold in locations other than liquor stores.

Singha Light will thus give the company access to more sales channels and will be distributed by Singha North America Inc.

At home, Mr Piti said Singha Light was expected to capture a share of between one and three percent of the total beer market worth 91 billion baht this year. Last year, the beer market was worth about 87 billion baht, he said.

The company has budgeted 250 million baht for marketing the new product, including 100 million baht for advertising, mainly on television.

Singha is hoping that Singha Light will help it gain back market share from top-selling Chang, and eventually return the company to the market leadership it enjoyed up to the mid-1990s.

Mr Piti said that in the first two months of this year, the company's beer brands had nearly a 40 percent share in the market and projected that this year the figure would increase to between 46 percent and 47 percent. In addition to the two Singha brands, the brewer also produces Leo, Thai Beer and Asahi locally.

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