Distribution Structures
At present, there are 300 distributors to serve the customers throughout Thailand. Internationally, Singha Beer has been exported to connoisseurs around the world since 1970’s. In addition, maker of Singha and Leo beers also plans to set up a brewery in Myanmar with initial capacity of 80 million to 100 million litres per annum as the opening gambit in its strategy to penetrate markets in Asean.
Piti Bhirombhakdi, regional marketing director, said the company had two options for investing in Myanmar. The first is to set up its own manufacturing operations in the country; the second is through a joint venture with a local partner.
"We are interested in neighbouring countries with high beer consumption. These would be Myanmar, Vietnam and Cambodia," he said.
Myanmar is a labour-intensive country that, as it opens up and becomes more politically stable, will become a tough competitor for Thailand in the near future, he said.
"With its location near southern China, we can set up a beer factory in Myanmar and use it to support both the Myanmar and Chinese markets," Piti said.
There are currently three major beer factories in Myanmar, one owned by the government and two by private companies. The government is granting licences to manufacturers interested in setting up breweries. Myanmar Beer produced by Asia Brewery leads the market in that country, followed by the Mandalay brand.
"We are looking at Myanmar as the first priority in setting up a brewery in Asean. We consider Vietnam our second priority," Piti said.