Professional Documents
Culture Documents
Product competitors in those countries SABECO / Sai Gon Beer Alcohol Tiger Beer by Asia Pacific UB with Millennium Alcobev Major Competitors: Chang
Beverage Corporation / Vietnam Brewery Breweries Ltd. (Kingfisher lager), and Beer 5%, Singha Beer 6%
Limited co. SABMiller (Haywards)
Mode Started as a joint venture between San Export products from Philippines Acqusition of Mohan Meakin Acquired in 2004 from the
Miguel and Khanh Hoa Beer Co. on Thailand/Indonesia Breweries Ltd. One of its Thai Amarit Brewery, San
November 12, 1994 and later acquired major beer products that is well Miguel Beer Thailand Co.
by the former in October 07, 1996 under known in India is Lion Beer. Ltd ; In November 2007 joint
the name of Golden Dragon Brewery venture between Ginebra San
Vietnam Ltd. On June 21, 1999 it Miguel Intl ltd. and the
company name was officially changed to ThaiLife Group
San Miguel Brewery Vietnam.
Are there barriers to entry? All alcoholic beverages are subject Complex regulatory framework Excise taxes on alcholic
to high excise duties; 7% GST, for the alcoholic drinks beverages were increased:
customs tax $16/L of alcohol, (licenses for setting up Beer from 55% to 58% ; A
Excise Duty $48/L of alcohol production units are issued by great number of Competitors
the central government, it is already thriving the market
the state governments which
set duties, taxes, and
legislation for retailing and
advertising. States have
different import and export
duties, value-added taxes and
excise duties, etc.)
Are there incentives for entry? Relaxed licensing legislation Government Assistance to
help Thai Breweries face
International competitors
Strength & weaknesses - S: large population, and increase in S: Alcohol consumption, especially S: Very large population, S: Large Market size of beer
disposable income, so alcohol binge drinking, has increased alcohol consumption is drinkers covers the 70.5% of
consumption is gradually increasing; W: among Singaporeans between increasing rapidly, market the total Thai population.
TV advertising is prohibited, limitation to 1992 and 2004; W: small growth rate at 10-17%/annum, W:Increased excise tax on
advertise the products population and high cost of (IMFL) is growing at the alcoholic beverages; Strict
manufacturing considerable rate of 15%/year, Public Ministry regulations
W: TV advertising is especially in promotion and
prohibited, Constraints on advertisement of beer
availability of key raw material products.
(molasses)
Opportunities & threats O: open market; T: increasing number of O: Untapped market - women O: Increase in the number of One popular event every year
competition drinkers aged 18-29; Youth Olypic middle class leading to high brings the Thai breweries
Games 2010 alongside openings of disposable income. T: UB with together to set up beer
the two Integrated Resorts in Millennium Alcobev and gardens and events around
Singapore T: APB has a market SABMiller account for nearly Bangkok during the month of
share of 69.5% in the local beer- 85% of the Indian beer market November. O: Reinvention of
consumption Products; Government
Assistance to help Thai
Breweries face International
competitors. T: Fewer and
bigger industry players due to
acquisitions; Proposed Zero
Import Tariff on beer in 2010
AFTA.
Special market conditions Since population in vietnam is still young, Frequent drinking increase was SMC should have state-wise
increase in beer/alcohol compsumption is observed for both genders but was marketing strategy because of
gradually increasing most pronounced among women the different policies per state,
aged 18–29. The level of regular women are still infrequent in
drinking declined in men but drinking alcoholic beverages
increased in women, especially
those aged 18–29 and 30–49.
Being younger, male, separated,
divorced or widowed, a current
smoker, or having a monthly
household income of S$6000 and
above were attributes positively
Since there is no age limit in
associated with binge drinking.
purchasing and drinking of
beer, we could consider
Thailand a market where beer
will boom for the next couple
Forecast of the future of the company As the vietnamese economy is expected Alcoholic drinks can expect to see Changing lifestyles, high of years. The sad thing is due
to continue progress well over the next a continued postitive performance disposable income levels and to the economic downturn, we
few years, leading to higher disposable in the forecast persio with the reduced social restrictions on can expect that this year Thai
incomes as well as modern lifestyles, upcoming events such as the alcohol consumption are drinkers would likely to reduce
alcoholic drinks sales are projected to Youth Olypic Games 2010 expected to expand the unnecessary spending due to
continue their healthy growth. alongside openings of the two consumer base for alcoholic financial constraints and
Integrated Resorts in Singapore, drinks in India.The key to its further promotion of the Thai
*Since smc is known which are likely to boost on-trade success is proper positioning government to the Drink,
worldwide, branding could be a help to consumption. The key to its and branding of SMB.They can Don't Drive campaign.
expand their market and overcome their success is proper positioning and re-introduce 'Lion' beer or start
competitors ; increase in demand over branding of SMB. Instead of a new line of India Pale Ale
the next couple of years. directly competing with APB for the
male drinkers, it could present a
product specifically brewed
according to the preference of
women. Niche marketing can be a
promising venture for SMB.
LYSIS AND
ATEGIES
INDONESIA MALAYSIA
Volume sales of alcoholic drinks Supermarkets/Hypermarkets
continued to increase at a stable command the largest
rate in 2008, although it was much distribution share. ; Growth in
slower thatn the rate in 2007. This alcoholic drinks is expected to
was caused by significant be positive as it is still largely
increases in fuel prices form the viewed as a drink for
first quarter of 2008. Purchasing consumers during social
power, especially among lower- gatherings and as a stress
income consumers, was reliever after a hard day at
significantly diminished, and this work. Alcoholic drinks posted
caused weaker growth in cheaper stronger volume growth in
products which targeted lower- 2008 as a result of the
income consumers. However, the government's decision not to
standard and premium segments increase any excise duties.
were less affected, because most Just recently, Mirzan Mahathir
of the consumers in these of Q-Tech Alliance Holdings
segments are tourists, expatriates, was appointed as one of the
and affluent Indonesians. In 2008, Board Members of San Miguel
supermarkets/hypermarkets and Corporation. Q-Tech has
convenience stores were more entered into an agreement with
popular channles for distributing Kirin Holdings to acquire a
alcoholic drinks particularly those 19.91% stake in SMC for
with an alcohol content of less than PHP39,610 million ($831.15
5%. million). Kirin intends to use
the sale proceeds from this
transaction to partly finance
the acquisition of about
43.25% stake in San Miguel
Brewery, Inc.
Acquisition Exporting
Acquired Company, PT. Delta
Djakarta, TBK in 1992 - located in
Bekasi, Timur