Singha Corporation, the brewer and distributor of Singha and Leo beer, is set to double its sales to 240 billion baht over the next five years following a clearer business grouping.
Bhurit: Acquisitions to foster growth
The company revamped its business structure and regrouped 64 subsidiaries into five groups: alcohol, non-alcohol, property, packaging and joint ventures. Previously it had only alcohol and non-alcohol groups, said director Bhurit Bhirombhakdi.
It has also appointed Bain & Co, a Massachusetts-based management consultancy, to help adjust the five business groups to have clearer business directions and targets.
Mr Bhurit said the global experience of Bain will help it find potential food and beverage companies around the world to be partners with Singha. The company will also consider acquisitions to foster its growth and business expansion.
"We plan to expand our business through our own products and via mergers and acquisitions," he said.
After the regrouping, Singha will position itself as a holding company, earning income from its stakes held in each subsidiary.
The company will resume its marketing investment in the second half of this year after seeing calmer political signs. Higher sales in the second half could offset the sharp sales drop in the first half.
Singha expects sales in the first half will miss its earlier projection. Sales of Singha beer grew by only 1% in the first quarter, while sales from its non-alcohol business grew 6-7%.
The company expects overall sales this year will grow only 10%.
Singha allocated 40 million baht to marketing campaigns for the imminent World Cup, as it is one of the main sponsors for the broadcast in Thailand. RS is the broadcast rights holder here for the 64 football matches.
RS is fighting a court case with the National Broadcasting and Telecommunications Commission because it does not want to broadcast all 64 matches on free TV as required by the regulator. RS wants to air 22 matches on two free TV stations — Channels 7 and 8.
Mr Bhurit said the goal is to grow sales from non-alcohol business by 10% to 20 billion baht this year.