'Lisa' Manoban, the Thai member of South Korea's superstar K-pop group Blackpink, has become a brand ambassador for a famous Scotch whisky company, reigniting discussion over the controversial Alcoholic Beverage Control Act.
Pictures and videos showing Lisa promoting the spirit have been widely circulated on social media, prompting authorities to issue a terse warning that they were considering action against people who post and share images of her with the whisky.
Thailand bans all advertisements for and depictions of alcohol across all media. Violators can be fined up to 500,000 baht or sentenced to one year in jail, or both.
The Lisa Blackpink controversy, nevertheless, may serve as a new wake-up call for the country to review this archaic anti-alcohol policy after Thaopipob Limjirakorn, a Move Forward Party MP for Bangkok, in early February proposed a draft law on excise tax, widely dubbed the "Progressive Liquor Bill", to revolutionise Thailand's alcohol industry.
MPs on Feb 9 voted 207 to 196 with two abstentions and three no votes to send the bill to the cabinet before it is returned to the House for a vote on whether to admit it.
In the latest development, the cabinet on March 29 decided instead to instruct the Finance Ministry to amend certain regulations regarding liquor production in a way that does not restrict the right of the public to produce liquor for non-commercial purposes, ignoring the Move Forward Party's draft Progressive Liquor Bill.
According to Rachada Dhnadirek, a deputy government spokeswoman, liquor production for non-commercial purposes is already possible, provided that the production complies with quality and environmental controls, to ensure the safety of those who consume it.
Controls on the safety standards of the liquor and on the environmental impact of the production process are, nonetheless, still mandatory.
NOT YET FINISHED
Mr Thaopipob said the cabinet's refusal to take into account the draft bill does not mean that it is automatically dropped, adding the draft will still have to return to the House for a vote on whether to admit it.
According to Mr Thaopipob, if the bill passes parliamentary approval, it will break up the decades-long oligopoly of liquor production in Thailand, involving a handful of rich families, and will provide an opportunity for new and small-scale players to enter the market for the production of liquor and beer.
He said small-scale producers will greatly benefit, expecting them to fetch roughly 40 billion baht worth of sales or about 10% of the total market in the early years of their operations once they are legitimately allowed to participate more in the market.
Mr Thaopipob admitted that many of them may fail as consumers would naturally reject liquor or beer if it tastes bad and is of substandard quality.
Nonetheless, he insisted the key issue he really wants to address is to allow ordinary people to produce liquor or beer for their own consumption and for those who want to commercialise their products, they need to pass quality standards of the responsible authorities as usual.
Mr Thaopipob has long been known as a campaigner against oligopoly in liquor production, as he himself was arrested five years ago for brewing his own craft beer.
ARCHAIC LAW NEEDS REJIG
Thanakorn Kuptajit, former chairman of the Thai Alcohol Beverage Business Association, has called on the government to revise the outdated Alcoholic Beverage Control Act.
He cited, for instance, the provisions that prohibit authorised sellers from selling alcoholic beverages between 2pm and 5pm, saying this does not stop people from buying alcohol. It is also considered an obstacle to a career.
"Instead, the authorities should seriously enforce the law that prohibits selling alcoholic beverages to customers aged below 20 and revise the zoning requirement to sell alcoholic beverages, because this is no longer appropriate to the current situation,'' Mr Thanakorn said.
According to Mr Thanakorn, like other businesses the alcoholic beverage market has felt the impact of prolonged Covid-19 outbreaks and uncertainties of the government measures on alcohol sales.
"Importers of alcoholic beverages have zero confidence in the government. Now it is very difficult to import alcoholic beverages. It takes up to three weeks for the Customs Department to clear imported products, compared to only one week before the crisis," he said. "Beer, in particular, has a short shelf life, therefore we want the government to make it more convenient for us to operate."
AMENDMENTS UNLIKELY
A source in the Finance Ministry who requested anonymity said the Excise Department does not agree with the idea of allowing households to brew alcoholic beverages for their own consumption and without seeking permission.
The department needs to carefully consider many aspects including quality control and how to prevent households from selling the liquor which they produce for their own consumption.
The source said that the government does not protect the interests of big liquor companies as the Finance Ministry has already opened up liquor production at a certain level. The source added that liquor is a product that still needs a certain level of control.
In 1998 the ministry allowed the production at the community level but brewers have to seek its permission. Later, it liberalised the brewing of white and brown spirits but the brewers have to meet certain conditions.
The source added that according to the cabinet resolution on Sept 15, 1998, which approved the liquor market liberalisation in 2000, the Finance Ministry has to explain to the public that liberalisation does not mean any party is free to brew liquor in all cases.
The liquor companies with permission have to undergo quality control and use mostly local raw materials.
LUCRATIVE MARKET
Thailand's booze market is worth about 260 billion baht, but in normal times before Covid-19 it weighed in at a whopping 370 billion baht in 2019.
Critics have complained for years that the market has become a big source of wealth and is monopolised by a handful of giant producers.
The current law itself is criticised as a key factor undermining the development of Thai traditional liquor, which some regard as a form of cultural wisdom.
Attempts to liberalise the industry have been made before but to little avail.
In 2000, the Democrat-led cabinet passed a resolution giving villagers the right to produce traditional alcoholic drinks. However, the policy has made no progress.
In 2003, the Thaksin Shinawatra administration allowed locals to form a community enterprise to seek a licence to open a distillery. However, these licences were hard to come by due to stiff criteria.
Under current regulations, a liquor distillery that qualifies for a licence must hold a minimum production capacity of 30,000 litres per day and it must be able to distil up to 99.5% of alcohol by volume.
The fact is that the alcohol concentration of most local white spirits sold in the market is up to only 40%.
Meanwhile, anyone who wants to produce beer requires a minimum registered capital of 10 million baht and a beerhouse that produces and sells its products on-site requires a minimum capacity of 100,000 litres per year.
This is why many small Thai beer producers have to set up production bases in neighbouring countries and export their products to Thailand, incurring high import taxes.
The proposed amendment is just to drop criteria hindering small producers from entering the market. If passed, it will remove the complicated rules on manufacturing capacity, the number of staff and production horsepower.
In effect, the new law will make it easier for people to brew booze either for themselves or for sale via a small enterprise or brewpub.
The legal changes will even allow villagers to use local wisdom to create signature brews, helping spur tourism and benefiting people working further down the supply chain. The profits may also be extended to the agricultural sector via ingredients such as rice or wheat.
MARKET RECOVERY
Prin Malakul, legal and corporate relations director at Heineken's local unit, Thai Asia Pacific Brewery, said the alcoholic drinks market in Thailand this year is expected to fare better than last year because consumers have greater confidence in going out and enjoying life as normal. The projected increase in foreign tourists and the government's gradual relaxation of safety measures should also help, said Mr Prin.
"Declaring Covid-19 endemic would increase convenience in the country and reduce difficulties, but the main factors depend on the economy, both domestically and abroad," he said.
The Russia-Ukraine conflict may impact international tourists' confidence and their spending plans, said Mr Prin.
However, with a new trend in the tourism and restaurant business, operators are believed to have more agility and be better adjusted to the new trends in terms of packaging, products and size, he said.
