Singha beer, one of Thailand’s most popular beer brands, in cooperation with global beer giant Carlsberg aims to expand heavily into Asian and European markets to challenge both brands’ rival Heineken.
The beer, produced by Boon Rawd Brewery, Thailand’s oldest and second largest brewery owned by tycoon Chamnong Bhirombhakdi, will now be bottled at Carlsberg’s production base in Russia and exported to Europe starting in March 2013. Expectations are high as Singha is brewed as a German-style lager type that meets the European taste. Closer production to the target markets also reduces shipping costs, the company said.
Singha will also be allowed to use any of eight Carlsberg plants in Asia to make Singha products to sell in the region. The company wants to realise its goal of becoming a top-three beer brand in Asia in terms of sales value in the next five years. It main rivals on that way are Singapore’s Tiger, Japan’s Asahi, Kirin and Sapporo, the Philippine’s San Miguel, South Korean brands OB Blue and Hite, China’s Tsingtao, Yianjing and Harbin, as well as India’s Kingfisher.
The brewer said it will seal business deals with at least six other companies from Asia and Europe in the coming years to boost expansion.
Beer brands under the Singha group have a total production capacity of 1.68 billion liters a year, while Carlsberg can handle 1.25 billion liters in ASEAN from two factories in Laos, one in Cambodia, four in Vietnam and one in Malaysia.
Singha will also distribute Carlsberg beer in Thailand. Under the partnership, Singha is hopeful the overall Thai beer market will grow by 8 per cent in each of the next three years.