Beer biz will lose fizz unless we hone craft

Beer biz will lose fizz unless we hone craft

If the government were really worried about our health, it would stop issuing concession licences to huge breweries such as Thai Asia Pacific Brewery at Nonthaburi. (Photo courtesy Heineken NV)
If the government were really worried about our health, it would stop issuing concession licences to huge breweries such as Thai Asia Pacific Brewery at Nonthaburi. (Photo courtesy Heineken NV)

When I read the news about a law graduate being arrested on Saturday for "illegally" brewing and selling his beer at his home in Nonthaburi, my tastebuds tingled at the prospect of sampling his beer.

Growing up in a country where the choice of locally produced beer is limited, I have no option but go for imported beers whenever I want to try something different.

My right to crack open a local beer has been limited by our outdated law that favours large-scale brewers. The 1950 Liquor Act allows only industrial-scale breweries which pump out at least 10 million litres of beer a year to operate.

The law also requires that a brewer must have a minimum of 10 million baht in registered capital. Meanwhile, brew pubs can operate only if they produce and sell at least 100,000 litres of beer per year on site.

Sirinya Wattanasukchai is an assistant news editor, the Bangkok Post.

Under the 1950 law, the maximum penalty for "illegal" brewing is a fine of 200 baht, while "illegal" sale is subject to a maximum 5,000-baht fine.

But a new law passed by the National Legislative Assembly last month raises the maximum penalty for illegal production to a fine of 100,000 baht or a six months' imprisonment, or both.

The maximum fine for selling illegal beer has gone up to 50,000 baht. Possession of illegal beer carries a maximum fine of 10,000 baht, up from 1,000 baht.

It is obvious that both laws have made it difficult or impossible for small-scale brewers to enter the industry.

This trade hurdle has forced them to set up brewery businesses outside Thailand, such as in New Zealand, Taiwan, Cambodia and Hong Kong. The import duty means consumers are made to to pay a higher price for beers sold in Thailand.

Why are our choices of local beer limited to just a handful of mainstream brands? Why has running small breweries become a big deal?

Remember how home-brewing rice whisky or rice wine became illegal when the Liquor Act took effect? At a younger age, I remember how the state tried to convince people not to brew their own alcoholic drinks because of dangers associated with such practices.

I was so naive then, thinking that the state was concerned about our health.

It wasn't until I grew up to realise that home brewing -- rice wine or whisky -- is not beneficial to the state as it is not subject to excise tax. Only those in remote areas, who couldn't get hold of properly taxed booze, could brew their own liquor and in turn pay a small amount of tax.

According to a story by Sarakadee magazine, taxed alcohol became available throughout the country in 1987 when Thailand's overall public transportation networks became well developed. Since then, home brewing became strictly prohibited.

An official quoted in the story said it was unfair that villagers could produce and drink cheaper liquor at home while city residents were barred from it and forced to buy taxed bottles of liquor at higher prices.

The local tradition of home brewing and drinking, as part of our culture, has been overlooked. The local wisdom has been discontinued. Homemade beverage recipes cannot be passed on to the next generation.

But home-brewed alcohol has recently made a comeback. The trend this time is different. It is not about rice wine or whisky, but "artisan, boutique and craft beer". And the trend setters are middle- and upper-class hipsters, not villagers in remote areas.

These small craft beer brewers have claimed that the existing laws prevent them from entering the brewing industry.

The laws, they said, favour giant breweries and protect the interests of these corporations. They are calling for the state to make it easier for small brewers to run their businesses legally.

In the past month, over 6,000 people have signed an online petition on Change.org, demanding that the state legalise craft beer and allow small brewers to start their own business.

The rising number of online petitioners and the increasing public interest in the topic send a clear and loud message: Both brewers and consumers want an end to the domination of local beer markets by a handful of local booze giants.

These small brewers should be given a chance to experiment and grow, as long as their products are not substandard and are safe to drink.

Thailand needs more start-ups to drive the economy. And my rights, as a consumer, will also be protected and rewarded with a wider range of beer choices.

Sirinya Wattanasukchai

Columnist

Sirinya Wattanasukchai is a columnist for the Bangkok Post.

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