Beer brewer's sales rise after flat year

Kwanchai Rungfapaisarn

The Nation

After experiencing stagnant sales last year, Thai Asia Pacific Brewery, the local producer and distributor of Heineken, has projected 5-per-cent growth this year.

"We see a better sentiment amongst consumers, which is in line with improving political and economic stability," marketing manager Nipol Swadipongpan said yesterday.

"We have achieved a good performance in the first quarter this year, which is in line with our 5-per-cent growth target, and we expect the same result for the rest of the year to be in line with our growth projection," he said.

The company said Heineken beer had a 95-per-cent market share in the local premium-beer segment. The segment accounts for between 6 and 7 per cent of the total beer market in value terms.

Thailand's overall beer market is projected to reach Bt112.6 billion this year, up from Bt103.3 billion last year. About 83 per cent of the market is taken by economy beers and 10 per cent by standard beers.

The economy segment enjoyed growth of 11 per cent last year, while the standard and premium segments were flat.

Nipol said Thai Asia Pacific Brewery had also invested substantially in marketing campaigns and activities to promote a good experience and association between the brand and potential drinkers in Thailand.

Commercial director Ronnie Teo said the company would focus on consumer insights such as music, golf or the current Champions League campaign for the launch of marketing initiatives.

"We have gone one step beyond the mass market. We will focus on experiential marketing created to connect the brand with consumers' interests and passions," said Teo.

He said the company had held many discussions and studied consumer lifestyles to create marketing campaigns.

"Any sports or music events should be world class and reach global audiences," said Teo, giving as an example the firm's global sponsorship of the Uefa Champions League tournament, which could reach more than 4 billion viewers in 220 countries. In Thailand, millions of viewers were expected to view the games during the course of the season.

"We will spend the same amount to market our beer, but the marketing budget will be allocated with sharper positioning, and better efficiency to connect our brand with consumers."