Carabao Tawandang, the manufacturer of Carabao Dang energy drink, has set an ambitious goal to become No.1 in Asean in five years.
Carabao Tawangdang, the maker of Carabao Dang energy drink, plans to expand in Myanmar with the help of the Carabao band to promote its products. From left: managing director Sathien Setthasit; Kyaw San Oo, director of Myanmar’s Ministry of Sports; Maung Maung Lwin, president of the Myanmar Chess Federation; Yuenyong Opakul, lead singer of Carabao; Gen Vichit Yathip, adviser to the Thai-Myanmar Association for Friendship; and Jiranan Pitpreecha, an SEA Write Award winner.
Managing director Sathien Setthasit said if this happens, the product will have total revenue of 15 billion baht by 2018. This year its sales target is 7 billion and next year it is 10 billion.
Some 78% of revenue is generated domestically, with 22% overseas. The company plans to raise overseas sales to 30% of total sales by 2016.
One of its major shareholders is the Thai folk band Carabao, and it uses the band to ease entry into neighbouring markets. In fact Carabao performed last week in Yangon, with all revenue from gig sales supporting Myanmar's hosting of the SEA Games.
Mr Sathien said the concert received an overwhelming response from Myanmar people, and next year it plans to penetrate Cambodia with the strategy.
"Our brand is already the market leader in some countries such as Laos and Cambodia. But the Philippines and Indonesia are quite tough, as its local leaders are very fierce," said Mr Sathien.
To accomplish its goal, the company plans to invest 1 billion baht to set up new factories in Myanmar and Cambodia, developing a base for export to other Southeast Asia and South Asia markets.
It chose those two countries as strategic bases to cut logistics costs.
Its Thai arch rival _ Shark _ is more popular in Myanmar because it costs half that of Carabao Dang.
The company will invest around 300 million baht per site, and its Thai production will expand by 40% from 3 million bottles daily. Some of the extra output will be exported throughout Asean.
"We definitely need to focus on Myanmar. We expect to appoint at least three sales agents to cover more than half the country. With its population of 60 million, we believe demand can be grown at least tenfold," he said.
Carabao Dang ships to 30 countries. The firm counts its market share in Thailand at 26% with a market value of 30 billion baht, second behind M-150 at 41% but ahead of Red Bull at 15%.