Chang International Co, the marketer of Chang beer, plans to spend 1 billion baht to grow consumption of Chang Cold Brew, its mass-premium beer, and strengthen its beer portfolio.
Lester Tan, the company's senior vice-president and chief of the beer business, said that with the easing of the pandemic, a continuous surge of international tourist arrivals to Thailand and more spending among Thai people, the company sees it as the right time to beef up its beer business.
According to Mr Tan, the spending is also aimed at driving brand differentiation of Chang Cold Brew in the country's 25-billion-baht mass-premium beer market, expand its consumer base, and broaden drinking occasions via new products with innovative packaging.
Chang Cold Brew was launched in 2019 with a positive response from customers. While it was still sold via limited channels, mainly modern trade and premium restaurants, this year the company plans to put greater focus on the distribution of Chang Cold Brew via traditional trade channels to widen its customer base. This is because 80% of all beer is sold via traditional trade channels and the rest is via modern trade channels.
The marketing budget would target traditional trade activities, channels and innovation, according to Mr Tan.
Mr Tan said the mass-premium beer segment showed a strong growth potential in 2022, with a market value of 25 billion baht and an annual growth rate of 10%.
"This is also a nod towards the increasing trend in diverse drinking occasions; not only are consumers drinking at special celebratory events but also when spending time to chill out or share good times together," Mr Tan said.
In addition to expanding distribution channel coverage, Chang Cold Brew plans to release its new packaging innovation in the fourth quarter of 2023.
Furthermore, Chang Cold Brew is planning both international and domestic music concerts throughout the year.
With all these plans, it aims to boost the sales contribution of Chang Cold Brew to 15% of the overall Chang beer portfolio this year.
It has been estimated that Thailand's beer market is worth 200 billion baht, 95% of the pre-pandemic level recorded in 2019. Beer consumption declined by 10-15% for two consecutive years in 2021 and 2022. On a year-to-date basis in 2023, however, the country's overall beer market grew by 7%.
