Thai Beverage is in the business of manufacturing and distributing food and beverages (the latter consists of both the alcoholic and non-alcoholic variety; most of the company’s business comes from the alcoholic beverages segment at the moment).
The company manufactures some of its products, like its Chang Beer brand of beers, while outsourcing the manufacture of other products, like frozen foods. Thai Beverage then distributes both its own as well as third-party products to retailers of various varieties.
So, to answer question 1: Given the aforementioned business model for Thai Beverage, it’s perhaps fair to say that the company’s business is simple and understandable.
Question 2
Thai Beverage has had an impressive track record. Between 2003 and 2014, the company has never made a loss and has achieved returns on equity of between 15% and 40%.
With such figures, Thai Beverage does have a consistent operating history.
Question 3
There are three areas of growth for Thai Beverage.
The company does business predominantly in Thailand today (the country’s the source of nearly 95% of the firm’s total revenue), a country that happens to be one of the fastest growing in Southeast Asia.
As the country’s economy grows, the capacity for private consumption from its people should grow as well. That’s a tailwind which Thai Beverage may be able to ride.
Thai Beverage has also been investing heavily on growing its international presence, especially with its alcoholic beverages. In fact, the company has an aim to grow revenue from outside Thailand to more than 50% of its total revenue by 2020.
Lastly, the company is also increasing the range of products it’s selling in Thailand. Thai Beverage has had a history of success with that as it was selling only alcoholic beverages in the past. Now, Thai Beverage distributes other products such as non-alcoholic beverages and frozen foods.
An even wider portfolio of products, if successfully implemented, may just be the third leg of Thai Beverage’s growth-stool.