- Spirits' decline in sales volume is due to weaker economic conditions. White spirits is facing more competition from local producers. However, brown spirits are harder for competitors due to their unique taste and distillation methodology.
- Chang has become the number one beer in Thailand. The brand has performed well in events, home consumption and the younger generations. A higher alcohol tax in Vietnam from the current 65% to 70% in 2027 will raise prices by around 2%, which will be passed on to consumers.
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Key Highlights
New products, new competition for spirits.
- White spirits are facing competition because they are easier to penetrate. In contrast, brown spirits taste has a “secret recipe” and a unique method of distillation.
- With the new regulations, many SMEs are expected to enter the spirits business. Will excite the spirits market with new products such as Ready to Drink Zato sparkling alcohol (launched Feb25) and premium single malt whisky Prakaan (Dec 24). White Spirits needs to improve its packaging to engage the brand with new consumers better.
Thailand beer gained market share.
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- The focus is on Chang Classic which has better scale and margins. It will also not confuse the market with Chang Cold Brew which is a smaller segment of the market.
Higher taxes in Vietnam.
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