Carlsberg – Singha deal is now in place

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A few months ago ScandAsia brought an article on how it was announced that Carlsberg would be re-entering Thailand through a new partnership with Singha brewery. Now more numbers and expectations are out as a realisation of bringing Carlsberg back as a major player in Thailand moves closer.

Singha will be allowed to use any of eight Carlsberg plants in Asia to make Singha products to sell in the region.

Beer brands under the Singha group have a total production capacity of 1.68 billion litres a year, while Carlsberg can handle 1.25 billion litres in Asean from two factories in Laos, one in Cambodia, four in Vietnam and one in Malaysia.

Singha wants to realise its goal of becoming a top-three beer brand in Asia in terms of sales value in the next five years, up from fifth. Now No.4, Carlsberg maintains the same goal. Director Piti Bhirombhakdi said Singha will distribute Carlsberg beer in Thailand for five years and has the right to renew the contract. Carlsberg will be distributed through Singha’s agents in 21 cities across the country. Mr Piti said the market for premium beer in Thailand was about 100 million litres a year in the past but has declined to 70 million litres or 630 million baht.More people shifted to drinking imported super premium brands, and with fewer players in the sector the market stagnated.

Under the partnership with Carlsberg, Singha is hopeful the overall beer market will grow by 8% in each of the next three years, while the premium beer market resumes growth of 10-12% on average.

“We are the challenger of Heineken,” said Mr Piti.

“The re-entry of Carlsberg in Thailand not only serves to increase sales and profit but also builds up the customer base in the region and capitalises on when Asean becomes a single market under the AEC.”

Apart from Carlsberg, the company has been contacted by at least six global companies from Asia and Europe that are interested in partnerships in other business areas such as farming, property and food.

The company expects to seal business deals with these firms in the coming years.

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