Here's why ThaiBev can rely on spirits for gains

It contributes more than 50% of ThaiBev’s revenue.

The new Chang beer is said to continue driving beer market share and growth for ThaiBev, but it is the spirits business that would still provide a strong base for the group, said a report from UOB KayHian.

The new version of Chang beer has successfully regained its beer market share since the product was launched in August 2015. The group's beer market share has climbed to above 40% in 1Q17 from below 30% before the campaign started.

"We expect this positive trend to continue and Chang beer should be able to grow its market share further," noted UOB KayHian.

However, the spirits revenue is expected to provide for a strong base, given that it contributes more than 50% of total revenue. Sales from the segment is expected to have a compound annual growth of 7% until 2019.

"Spirits products are expected to be ThaiBev's core products, contributing the largest part of revenue and EBITDA. As ThaiBev owns more than 90% market share of spirits consumption in Thailand, we expect its spirits sales to grow amidst resilient demand as consumers could switch amongst a wide range of products at different price points," said UOB KayHian.