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Published on July 20, 2007

"We believe we've followed the rules and regulations. Everything is in line with market mechanisms," Thapana said. "However, we need to acknowledge we're not alone in the sales process, which involves the manufacturer and a layer of distributors. It's not easy to fix product prices, because all traders want to sell products, and none wants to sell at a loss."

He noted that pricing was a key marketing tool and part of market mechanisms.

The Commerce Ministry is investigating a petition by Singha agents to determine whether Thai Beverage has violated the Product and Service Price Act, which bans business operators from quoting too-high or too-low prices for their products.

The case is also subject to the Competition Act, which prohibits wholesalers and retailers from quoting unfair prices that would affect the competition.

On July 6, more than 200 agents of Singha beer nationwide marched to the Commerce Ministry in protest against Thai Beverage's alleged price dumping of its Archa beer. The protesters wanted the ministry to take temporary action to halt Thai Beverage's unfair trade practice.

They said Thai Beverage agents sold a case of Archa beer (12 bottles) for Bt240 to Bt250, lower than the Bt371 price at the factory door. They also suspect Thai Beverage agents can quote such low prices because of an unfair pooling system that forces retailers to buy white spirits pooled with Archa beer.