The Effects of ASEAN Economic Community on the Thai Beverage Public Company Limited

Topics: Southeast Asia, Alcoholic beverage, Economic integration Pages: 9 (2978 words) Published: May 3, 2013
THE EFFECTS OF ASEAN ECONOMIC COMMUNITY
ON THAI BEVERAGE PUBLIC COMPANY LIMITED

Chrissy Bowman
5502930018
Thammasat University
International Business IB311
2 October 2012

Company Overview

Thai Beverage Public Company limited (“ThaiBev”) is Thailand’s leading producer of beer and spirits and one of the largest beverage alcohol companies in South East Asia. Thapana Sirivadhanabhakdi founded the company in 2003, he is now the president and CEO. His vision: one group company that consolidates Thailand’s leading spirits and beer producers. Before the companies establishment the leading spirits and beer business belonged to shareholders and other investors. In October 2003, 58 related companies in the production and marketing of alcoholic beverage group and related businesses merged into the Thai Beverage Public Company Limited (Thai Beverage Public Company Limited", 2012) ThaiBev took a leap of faith in 2006 by enlisting in the Singapore Exchange (“SGX”) where they currently rank top 30 largest company by market cap, with a market capitalization in excess of US$4Billion.

After entering the stock exchange, ThaiBev expanded their product portfolio into the non-alcohol and food business in order to increase customer appeal, reduce business risks and enhance management efficiency (Thai Beverage Public Company Limited", 2012). The company operations by business consist of 4 segments: spirits, beer, non-alcoholic beverages and food. Their International Product portfolio includes: Thai Brands (Chang), Single Malt Scotch Whisky, Blended Scotch Whisky, Vodka, Gin, Chinese Spirits and Chinese Wine. ThaiBev recognized spirits brands include Ruang Khao, SangSom, Mekhong, Hong Thong and Blend 285. Some of their non-alcoholic beverages include ThaiBev's flagship and Oishi RTD green tea (Thai Beverage Public Company Limited", 2012). The company’s signature beer is Chang Beer, introduced in 1995 as the only Thai-made beer that has Thai script on their labeling, thus signifying a sense of pride for Thai culture. In 2004, the success of Beer Chang propelled the company to be a market leader in domestic beer products. Currently, Chang is the top selling brand in Thailand overtaking Singha, the previous biggest brand. it is sold nationwide and also exported around the world. The total sales revenue for the company in 2011 was 132.2 BILLION baht, 64% spirits sales (Thai Beverage Public Company Limited", 2012).

Currently, Thai Beverage Public Company Limited comprises 63 subsidiaries. The ThaiBev headquarters are located in the heart of city: Bangkok, Thailand. The assets today comprise 18 distilleries in Thailand, 5 Scotch whisky distilleries in Scotland, one distillery in China, 3 breweries in Thailand and 7 non-alcoholic beverage facilities in Thailand (Thai Beverage Public Company Limited", 2012). ThaiBev generates business in Thailand and various markets in over 80 countries around the world with over 30,000 employees. They have international offices in Hong Kong, Singapore, The US, the UK, Malaysia and Cambodia. (Thai Beverage Public Company Limited", 2012) In an effort to internationally expand liquor operations, last year ThaiBev acquired Yunnan Yulinquan Liquor Co Ltd the producer of white liquor in Kunming, China for 318 million baht. International operation grew that year 35% to generate more than five billion baht in sales. This year, ThaiBev is targeting a 20% expansion of its international operation. ThaiBev continues its acquisition spree to enlarge its products range because it has proven successful in the Food and Beverage industry. David Lind, the Vice President for marketing at subsidiary International Beverage Holdings, said “We aim to be a top five Asian beer brand in the world market by 2015” (Thai Beverage Public Company Limited", 2012) Below is the product portfolio of Thai Beverage Plc. (Thai Beverage Public Company Limited", 2012)

The power of Thailand’s liquor and beer industries is essential in...

References: Czinkota, M., & Ronkainen, I. (2009). Fundamentals of International Business (1st ed.). Milton, Austrailia, Ltd: John Wiley & Sons Australia.
Jakarta: ASEAN Secretariat (2008, January). ASEAN Economic Community Blueprint. Home. Retrieved from http://www.asean.org/archive/5187-10.pdf
Jakarta: ASEAN Secretariat (2011, February). ASEAN Economic Community Factbook. The Official Website of the Association of Southeast Asian Nations. Retrieved from http://www.aseansec.org/publications/ASEAN_AECFactBook.pdf
Manuel, E. (2007, April 14). INDUSTRY AND E-COMMERCE INDUSTRY CASES AT THE GLOBAL LEVEL. mpra.ub.uni-muenchen.de/3077/. Retrieved from http://mpra.ub.uni-muenchen.de/3077/1/MPRA_paper_3077.pdf
Porter, Michael.1990. The Competitive Advantage of Nations, First Published, Macmillan Press: New York; 34-39.
Thai Beverage Public Company Limited. (2012, April 30). Thai Beverage Public Company Limited. Retrieved from http://www.thaibev.com/webIR/business.html
Thai Beverage Public Company Limited (2011, January). Annual Report 2011. www.thaibev.com. Retrieved from http://thaibev.listedcompany.com/misc/AR/20120413-THAIBEV-AR2011-EN.pdf
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