ThaiBev readies THB18 billion for 2025 business expansion

Food and beverage giant Thai Beverage (ThaiBev) has announced an expansion plan worth 18 billion baht, targeting alcoholic and non-alcoholic drinks, dairy products, food, and sustainability operations.

During a press briefing in Bangkok on Tuesday, chief executive Thapana Sirivadhanabhakdi outlined the company’s six-year strategy, dubbed “Sustainable Growth to Passion 2030”, which focuses on consumer reach and digital transformation.

The first focus, “Reach Competitively”, aims to satisfy customers who tend to switch providers if they have to wait longer than 30 seconds.

The second focus, “Digital for Growth”, aligns with the rising use of smartphones.

Starting next year, ThaiBev will boost investment from 7-8 billion baht to 18 billion baht, said Prapakon Thongtheppairot, president and head of the spirits business.

Of this budget, 9.5 billion baht is earmarked for the non-alcoholic drinks segment, which includes the 8-billion-baht flagship Agri Valley Farm in Malaysia for dairy production, he said.

ThaiBev will also invest 3 billion baht to establish a beer factory in Cambodia with initial capacity of 50 million litres, and 2.5 billion baht in the spirits business, said Prapakorn.

Finally, 1 billion baht will be used to expand the food business and 2 billion baht for the group’s sustainability operations.

Songwit Sritham, chief executive of beer business (Thailand), said the Thai beer market is expected to recover to pre-Covid levels of 2 billion litres in 2025, thanks to the rapidly rebounding tourism industry.

“ThaiBev aims to maintain its market leader position next year by expanding its product portfolio to a mass premium group, including Chang Cold Brew, Federbräu, and Chang Unpasteurized,” he said.

Aggressive marketing with innovative technology would place Chang as the No 1 beer in the Thai market, he predicted.

Kosit Suksingha, chief executive of non-alcoholic beverage (Thailand), said he expected to see 2-digit annual growth for ThaiBev following investment in the Agri Valley Farm, citing the high profit margin for dairy products in Thailand and neighbouring countries.

He added that ThaiBev will next year introduce health products under the brand “F&N Nutriwell”, while launching its Oishi green tea and Tea Pot milk brands in Cambodia.

Sopon Racharaksa, chief of food business (Thailand), said the company will invest 1.3 billion baht to open 69 new restaurant branches in 2025, mainly under its flagship brands of KFC and Oishi.

“We will also bring 16 of our famous restaurants to the One Bangkok project, which will launch at the end of this month, under an investment budget of 400 million baht,” he said.

ThaiBev’s food business has a set a target of 1,200 branches in six years under the company’s Passion 2030 roadmap. Sopon is confident that the milestone off 888 branches will be achieved next year.

The company’s food arm currently ranks 3rd in the country behind Minor Food Group and MK Restaurant Group, with revenue of 17 billion baht last year.