Thai energy drink producer Carabao Group Plc (CBG) is targeting British football fans as it looks overseas amid declining domestic consumption.
The group will explore Europe, the US and China as part of its plan to drive sales to 10 billion baht over the next three years.
The company has collaborated with Reading FC, an English football team, using sports marketing to gain a foothold in Europe.
Under the one-year sponsorship, the Carabao logo will appear on Reading's jerseys for the 2015-16 season. Reading FC, which is owned by Thai businesswoman Khunying Sasima Srivikorn and her friends, plays in the second-tier Championship.
Sathien Setthasit, chairman & chief executive of CBG, producer of Carabao energy drink, said it would start selling Carabao Dang in sleek 325-millilitre cans at UK supermarkets and the Reading football stadium this August. The products will also be available in Spain.
The company expects to sell about 50 containers of its energy drink per month initially. It aims to generate 500-600 million baht in sales from Carabao Dang in the European market in three years.
The partnership with Reading FC will be carried out by a Carabao distributor in the UK with approval by CBG.
Mr Sathien said Carabao Dang had been available in Europe and the US for several years but was not successful because its products were only available in Asian supermarkets. With more distribution channels, its products can reach a wider audience.
"English people already know Red Bull as the global brand that originated in Thailand. This will benefit Carabao Dang," he said.
CBG recently set up a company in Guangzhou, China to import and distribute Carabao products. The move allows it to control imports and marketing better in a country where the market for energy drinks totals 100 billion baht.
The group also plans to expand into Asean, particularly Myanmar, as it wants to become a regional beverage brand within three years.
To support future overseas growth, it will spend 500-600 million baht to double production capacity to 700 million cans per year.
Domestic demand in the 30-billion-baht energy drink market gradually rebounded from a 3% contraction in 2014 to grow 1-2% this year. Carabao controls 23% of the market, with 2015 sales expected to reach 8 billion baht, with 5 billion from the domestic market and 3 billion from exports.
CBG shares closed on the SET yesterday at 43.50 baht, unchanged, in trade worth 27.8 million baht.