Energy drink producer, the Carabao Group is set to tap into Thailand’s Bt 260 billion (US$7.38 billion) beer market following the recent introduction of its Carabao and Tawandang beer brands.
Sathien Sathientham, Chief Executive of Carabao, said it had invested Bt 4 billion (US$113.5 million) in the construction of a beer production plant with total annual production capacity of 400 million litres in Chai Nat province, using sophisticated imported machinery and technology. Initial production capacity will be 200 million litres per year, with the aim of swiftly tapping the market through integrated marketing campaigns to establish the two brands in the minds of consumers nationwide.
Sathien said that both brands will target the economy and standard beer segments, which represent more than 90% of the country’s beer market. The Tawandang brand will target both the standard to premium segments, catering to a wide range of consumer preferences. Carabao aims to become one of the top 3 players in the country’s beer market.
The main marketing strategy of Carabao is to introduce high-quality beer at accessible prices. 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, said Sathien.
“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 3 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,” concluded Mr Sathien.
The Carabao Group is introducing 5 beer variants simultaneously namely 2 flavours under the Carabao brand, including Lager beer and Dunkel beer; and 3 flavours for the Tawandang brand, namely Weizen beer, Rose beer and IPA beer. These will be made available at 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 modern and traditional retail stores nationwide.
Carabao has redesigned its distribution structure, aiming to directly supply beer to district-level distributors to expedite the product’s reach to retail stores countrywide.