Thailand: Carabao Group unveils new strategy for 2026 to �unlock Thailand�s beer market�

Sathien Sathientham, vice chairman of Carabao Group, offered a candid reflection on the challenges faced by Thai brewers in a market dominated by a few major players, The Nation reported on November 11.

Despite setbacks, the company has refused to give up, unveiling a new strategy for 2026 to “unlock Thailand’s beer market” through innovative brewing techniques and international production standards.

He admitted the past two to three years had been difficult, involving constant experimentation and travel to perfect a recipe suited to Thai tastes.

“Initially, we wanted a Japanese-style beer, but the deeper we explored, the more we realised that every Japanese beer has its roots in German brewing,” he said, describing the learning curve behind Carabao’s new beer development.

Recently, the company invited over 50 retailers to sample its new Tawandang draft beer, ahead of its official launch, offering a new experience for Thai beer drinkers. For the first time, Tawandang draft beer will be available outside the brewery, targeting restaurants, pubs, and bars nationwide.

“From now until early next year, we’ll distribute around 100 beer dispensers and introduce new beer taps by the first quarter of 2026,” Sathien said, adding, “This time, our beer will meet international standards and bring new colour to a market that is no longer monopolised.”

Carabao currently produces six beer varieties covering both mass and premium segments.

Carabao has joined forces with Tsingtao Brewery, a world-renowned Chinese beer brand, which plans to appoint Carabao as its distributor in China, starting in two or three provinces before expanding nationwide.

“Tsingtao has never allowed any company to produce its beer before—Thailand will be the second country after Germany,” Sathien said. If successful, Carabao’s facility will become a key production base for Tsingtao’s exports across ASEAN, with shipments expected to begin in early 2026.

Carabao’s total brewing capacity has risen to 300 million litres per year from 200 million, though current utilisation stands at just 20%.

“Tsingtao’s partnership will help fill that gap significantly,” Sathien noted. The company has invested over 4 billion baht in its beer business and recorded combined losses of around 1 billion baht in the first two years.

However, he expects to break even or turn a profit next year if the market responds well.

Sathien acknowledged that Thailand’s strict advertising laws, which prohibit beer commercials on television, remain a key limitation.

“We have to educate consumers directly through retailers,” he explained. About 70% of sales currently come from off-trade channels such as convenience stores, where Carabao and Tawandang beers rank No.1 at CJ stores.

The new draft beer aims to boost sales through on-trade channels—restaurants, pubs, and hotels—where profit margins are higher. “Some venues now have over 50% market share for Carabao beer,” he said, confident that draft beer will complete the company’s product lineup.

Thailand’s beer market is valued at around 260 billion baht, but growth has slowed and remains dominated by major players, with Carabao’s share still below 1%. The new Alcoholic Beverage Control Act, effective November 8, 2025, has also added pressure.

“The new law brings no good news. If strictly enforced, it will affect both sellers and drinkers,” Sathien warned, noting that the midnight sales ban could hit restaurants hard.

“Brewing beer is like digging a sand pit—you have to work hard before seeing results,” Sathien concluded, reaffirming his long-term commitment to building an alternative choice in Thailand’s beer market.