Carabao vows to fill gaps in the beer market

Carabao vows to fill gaps in the beer market

Company introduces two in-house brands

Mr Sathien says the company's primary marketing strategy is to introduce high-quality beer at accessible prices.
Mr Sathien says the company's primary marketing strategy is to introduce high-quality beer at accessible prices.

Carabao Group, the energy drink manufacturer, is set to tap Thailand's 260-billion-baht beer market following the introduction yesterday of its Carabao and Tawandang beer brands.

Sathien Sathientham, chief executive of the group, said it had invested 4 billion baht in the contruction of a beer production plant with a total production capacity of 400 million litres per year in Chai Nat province, using globally standardised production technology and imported machinery.

He said the initial production capacity would be 200 million litres per year for the two brands, with the aim of swiftly tapping the market through integrated marketing campaigns to establish the brands in the minds of consumers nationwide.

According to Mr Sathien, both brands will target the economy and standard beer segments, which represent more than 90% of the country's beer market. The Carabao brand will be positioned to tap into the economy and standard segments, while Tawandang will target the standard to premium segments, catering to a wide range of consumer preferences.

The group has set an ambitious goal of becoming one of the top three players in the country's beer market.

The primary marketing strategy is to introduce high-quality beer at accessible prices, he said.

This initiative draws from the experience of operating a highly acclaimed microbrewery under the group's existing Tawandang German Brewery, which has catered to over 10 million customers for more than 20 years.

Both brands will offer aromas and tastes akin to or closely resembling the beer sold by Tawandang German Brewery under the German Beer Purity Law standards, which use only malt, hops and yeast. This sets them apart as a new standard for this country's beer market, he said.

"In a market dominated by only a few large brands, consumers often lack significant choices. Many consumers desire world-class quality beer, but imported beers are typically expensive, limiting accessibility. This gap in the market presents an opportunity that the Carabao Group aims to fill by introducing new options to meet consumer demand. This move not only positions us to become one of the top three players in the beer market, but also reflects our commitment to elevate the Thai beer-drinking culture by offering genuine German-style high-quality beer in terms of taste, overall quality, and globally standardised production, revolutionising Thailand's beer industry," said Mr Sathien.

Through this special form of market entry, Mr Sathien said the Carabao Group has chosen to introduce five flavours simultaneously: two flavours under the Carabao brand, including Lager beer and Dunkel beer; and three flavours for the Tawandang brand, namely Weizen beer, Rose beer and IPA beer.

In addition to fully-fledged marketing activities, Mr Sathien said the group also looks set to make available its beer products with five flavours through stores within the Carabao Group's network, including over 1,000 CJ Mall stores nationwide, over 5,000 Tookdee convenience stores, and truck units in 31 distribution centres which enable the group to gain access to retail stores, modern and traditional trade nationwide.

Moreover, the firm has redesigned its distribution structure, aiming to directly supply beer to district-level distributors to expedite the product's reach to retail stores countrywide, facilitating quick access for consumers to quality products and flavours.

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