Carabao Conglomerate Releases 5 beer variants through 2 Beer Brands “Carabao” and “Tawandang”, Ready to Compete in Thailand’s 260-Billion-Baht Beer Market
The new beer brands exemplify the high benchmarks set by Tawandang German Brewery, as they declare their commitment to “setting a new benchmark” within the beer industry, ensuring that Thai people enjoy a global experience.
- In line with the standards of Tawandang German Brewery, these beer brands introduce 5 distinct beers, setting a new benchmark in Thailand’s beer market.
- The latest product launch underscores the motto “World-class product, World-Class Brand,” as it introduces the growth-driving beers with the aim of expanding into international markets, propelling the company’s associated companies into the global arena.
- Pioneering a fresh distribution network in Thailand, both beer brands are now directly supplied to small-scale distributors, ensuring swift delivery to consumers while preserving product quality, flavor, and freshness.
- A substantial investment of 4,000 million baht has been allocated for the construction of a state-of-the-art beer production facility in Chainat province. This facility is equipped with world-class production technology, exclusively employing imported international standard machinery. In its initial year, the factory is projected to produce 200 million liters.
- The company’s sports marketing strategy has been expanded through the launch of the “Experience the World Class, Cheer for Football, Cheer for Bao” campaign, offering participants the opportunity to win tickets for the 2023/24 Carabao Cup Final, ensuring a once in a lifetime experience for football supporters right at the stadium.
Sathien Sathientham, Chief Executive Officer of Carabao Conglomerate, disclosed that the company has dedicated substantial resources over the past two decades to introduce two beer brands, “Carabao” and “Tawandang,” as they prepare to make their mark on the Thai beer market, valued at 260 billion baht, the largest segment in the beverage industry of Thailand.
An initial investment of 4,000 million baht has been allocated for the construction of a beer production facility in Chainat Province. The facility is outfitted with cutting-edge production technology, featuring imported machinery from overseas.
It boasts a production capacity of around 400 million liters. The initial phase will involve a pilot production of 200 million liters, which represents the largest investment ever made in the industry.
According to the CEO, the company has extensively adopted an integrated marketing strategy with the aim of swiftly capturing the affection of consumers across the nation. In terms of market positioning, both brands will operate within the economy and standard segments, which collectively constitute more than 90% of the beer market share.
“Carabao” will be positioned within the economy to the standard segment, whereas “Tawandang” will occupy the standard to premium segment, catering to the diverse needs of consumers across all demographic groups. The objective is to establish a presence as one of the top three key players in the beer market.
The primary objective for market penetration is to provide top quality beer at an affordable price, while also introducing fresh alternatives to the market. The company is leveraging its expertise gained from managing the Tawandang German Brewery enterprise to offer customers across the nation a chance to sample their offerings.
As Thailand’s top microbrewery, Tawandang German Brewery has established a reputation for its exceptional and one-of-a-kind German beer flavor. With over 20 years of experience, they have served more than 10 million satisfied customers.
The two beer brands will adhere to the German Beer Purity Law – a set of regulations that require the use of only malt, hops, and yeast in the brewing process. As a result, the aroma and flavor of the beers will closely resemble those sold at Tawandang German Brewery. This adherence to standards is unique in the Thai beer market and is “setting a new benchmark” for the Thai beer market.
“The market for beer is dominated by a small number of major brands, limiting the options available to consumers. Despite a strong demand for high-quality beer, many of the best options are imported and come at a premium price, making them inaccessible to most. This creates a gap in the market that remains untapped,” said Sathien.
By addressing this gap in the market and offering new options to meet consumer needs, he stated that the Carabao Conglomerate has an opportunity to establish itself as one of the top three players in the beer market. Additionally, our goal is to elevate the standard of beer consumption in Thailand by producing high-quality, authentic German-style beer that meets world-class standards in taste, quality, and production processes. This aligns with our vision to revolutionize the beer industry in Thailand.
“This market entry is unique because the Carabao Conglomerate is launching five different variants of beer simultaneously, including two under the Carabao brand (Lager and Dunkel) and three under the Tawandang brand (Weizen, Rosé, and IPA). This is the first time in the Thai beer industry that such a diverse range has been introduced at once. The objective is to provide Thai consumers with greater access to world-class beer options.”
The CEO of Carabao said this launch also serves as a testament to the production capabilities of our world-class brewery in Chainat Province, equipped with imported machinery. By demonstrating our ability to produce a range of high-quality beers.
“We are further reinforcing our position as a “World-class Product, World-class Brand” company. With this advanced production potential, we are capable of producing a diverse range of beers.”
However, Carabao Conglomerate faces a challenge as the beer market is dominated by key players that hold more than 80% of the market share. As a result, the primary strategy in the initial phase will be to educate the market about the new standard of third-party beers and to encourage consumers to try a beer that meets world-class criteria and introduce them to alternative beers that are loved all over the world. It’s about the distinctive tastes and strengths that differ from existing options in the market.
Carabao Conglomerate has invested its largest marketing budget in the past 20 years since the launch of the energy drink “Carabao Dang” and prepared a comprehensive marketing campaign across all channels. One of the key marketing strategies is the decision to extend Carabao’s contract with the English Football League (EFL) as the main sponsor of the Carabao Cup for a further three years from its original expiry in 2024. This will see Carabao continue as the main sponsor of the English League Cup until 2027, which is the longest sponsorship term in EFL history.
To further implement its global sports marketing strategy, a major campaign has been launched. The “Experience the World Class, Cheer for Football, Cheer for Bao” campaign will give everyone a chance to enjoy a world-class football experience and watch world-class football matches from the sidelines.
Consumers have the chance to travel to England to watch the Carabao Cup 2023/24 Final. This campaign is sure to drive the trend, attract consumers to engage with the brand, and further strengthen its position as a “World-class product, World-class brand”.
In addition to extensive marketing activities, another significant strategy is a focus on distribution networks. All five beers will be distributed through the Carabao Conglomerate network of retail stores, including CJ More, which has 1,000 branches nationwide, and Tookdee shop, which has over 5,000 stores nationwide. They will also be distributed through mobile vehicle units in all 31 distribution centers with access to retail stores nationwide, including modern trade and traditional trade channels, which the company gives importance to.
The company has prepared a restructuring of its distribution network of all goods in its portfolio to coincide with the unveiling of the two beer brands. It directly distributes items to district-level distributors nationwide. This helps to shorten the distribution process, allowing items to reach retail outlets or grocery stores across the country more rapidly. It also makes it more convenient for consumers to find high-quality, tasty items.
Sathien added that another key strength that gives the company confidence that both beer brands will be well accepted by customers is the robust brand reputation, particularly the Carabao brand, which is well-known not just within Thailand but also on an international scale. At present, our products are exported to 42 countries, spanning all continents.
Furthermore, our role as the primary official sponsor of the EFL Cup football competition, rebranded as the ‘Carabao Cup’ since 2017, has significantly heightened international recognition of the Thai brand.
The Tawandang brand has gained recognition as a microbrewery, being the first and most comprehensive of its kind in Thailand, with over two decades of existence. The Carabao Conglomerate aspires to expand the export of its beer products to international markets, with a particular focus on countries like the United States, the United Kingdom, and Australia, where Thai restaurants are the most abundant worldwide.”
Currently, the beer market in Thailand is showing a consistent growth trend, driven by the ongoing economic recovery. The Carabao Conglomerate’s entry into this market is expected to mark a movement in market dynamics, as the company introduces a new standard of beer with a range of diverse options. From the market’s overall value, which now exceeds 500 billion baht in the alcohol sector.
The company’s goal is for beer to serve as a significant driver, propelling the growth of the alcohol product category and, in turn, acting as a catalyst for the further expansion of the market.