ThaiBev to build second China plant
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ThaiBev to build second China plant

Thai Beverage Plc plans to invest about 500 million to one billion baht setting up a second white spirits factory in China this year.

Finance director for international business Tee Seeumpornroj said the second white spirits factory will be built next to existing facilities in Yunnan province.

The brewer of Chang beer is in the process of designing the new factory and is expected to start construction by the end of the year. It will take about 18 months to complete.

After the new factory is opened in 2014, total capacity for Yulinquan white spirits will double from the current level. Mr Tee did not disclose exact figures.

Yunnan Yulinquan Liquor Company is located south of Kunming in Yuxi town.

Thai Beverage, also known as ThaiBev, has five whisky distilleries in Scotland and produces Hankey Bannister blended Scotch whisky, which is available in over 60 countries.

Mr Tee said the company is considering importing its Hankey Bannister whisky and gin products to Thailand by the end of the year. This is to meet demand from high-end customers.

Hankey Bannister's original product is in the same segment as Johnnie Walker Red Label, but it is about 15% cheaper.

ThaiBev is conducting a feasibility study on the selling its beverage products, including whisky, beer, ready-to-drink green tea and drinking water, to Myanmar.

"There is huge potential for beer in Myanmar because it has only three beer brands, including Myanmar, Dragon and Mandalay, and all of them belong to the government," Mr Tee said.

It is easy for Thai alcohol products to gain acceptance among Myanmar customers now that the country is more open.

The beer market in Myanmar is estimated to be about 300 million litres per year, compared with two billion litres in Thailand.

Mr Tee explained that after regulations change, the company will export its products to Myanmar.

If sufficient sales volumes are achieved, the company will consider setting up a factory in the country.

The company plans to spend about 600-700 million baht promoting its beverages in the international markets this year. Thai Beverage expects international sales to reach US$500 million by 2015, up from $200 million in 2011.

Of total international sales last year, about 70% came from Scotch whiskey and white spirits. The remaining 30% came from from Chang beer and Mekhong rum.

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