Thai Beverage Plc (ThaiBev), the producer of Chang beer, is set to invest a total of 30 billion baht to expand its business locally and abroad during 2015-20. Its goal is to become the biggest and most profitable beverage company in Asean.
Mr Thapana (centre in front row) with other executives is ready to make ThaiBev a real leader, not just a leading beverage company in Asean. APICHIT JINAKUL
ThaiBev's president and chief executive Thapana Sirivadhanabhakdi announced the company's strategic plan, vision 2020, yesterday. It will invest about 5 billion baht per year over the next six years to expand its beverage business.
The company aims to grow by 12-15% a year during this period.
To achieve its goal, ThaiBev will focus on five strategies: growth, diversity, brands, reach and professionalism. It has streamlined its operations into three businesses, namely beer, whisky and non-alcoholic beverage.
"Vision 2020 is all about sustainable leadership. It underlines our resolve to consolidate and build on our leading position in Southeast Asia," Mr Thapana added.
For growth strategy, the company seeks to increase both revenue and profit by 12-15% on average per year. Sales of ThaiBev reached 156 billion baht in 2013 with a net profit of 19 billion baht.
For diversity, the focus will be on its non-alcoholic business, with the segment's revenue contribution expected to increase to more than 50% of the total by 2020.
According to Mr Thapana, the sales volume of ThaiBev beverages is the highest in Asean, controlling about 14% market share.
For brands, the company will focus on building its brands. It sees a lot of opportunities to build all of its brands in overseas, so a consistency of brand building is essential.
ThaiBev's beer brand is Chang while its spirits are Mekhong, Hong Thong, Ruang Khao, Blend 285 and Old Pulteney. Non-alcoholic beverages are Est carbonated soft drink, Oishi green tea, NutriSoy soy milk and 100 Plus sport drink.
ThaiBev owns Fraser and Neave in Singapore. It just agreed to buy the Est brand and trademark from Sermsuk Plc for 1.56 billion baht. Est will be exported to Malaysia next year.
Blend 285 is currently the fastest-growing blended whisky brand in Asean. The company aims to push its sales to the top in the international whisky market within the next six years.
"We want to become No.1 or No.2 in all categories we have. And, we aim to regain the market leadership in the local beer market within 2020 as well," Mr Thapana said.
For reach strategy, the company will increase the efficiency of its distribution network for all its products.
The company is also in the process of turning its human resources into professionals willing, capable and ready to help the company penetrate the international market.
"We are ready to be the real leader, not just a leading beverage company in Asean. Once we get that point, we will put efforts to to maintain our leadership," Mr Thapana.
Ueychai Tantha-obhas, ThaiBev's group executive vice-president for sales of spirits business, said it would put more focus on getting more of its products to reach customers in both domestic and overseas markets.
Currently Hong Thong and Ruang Khao are among the top 10 spirit brands in the international market. More spirits will be exported to the Philippines, Vietnam and Myanmar.
"We want to have our famous Mekhong rum available at all hotel bars worldwide like Bacardi brand," Mr Ueychai said.
Mr Ueychai said premium spirits from its factory in Scotland would be sold in Thai hotels, pubs and restaurants next year.
The company is set to spend about 800 million baht to promote its spirits business each year.
Dato Ng Jui Sia, chief executive for non-alcoholic beverages at Fraser and Neave, said the company would expand sale of its non-alcohol beverages to six countries in Asean, up from three now.
"Best practices from F&N will be applied in the countries we will expand into in the future," he said.